Hormel Foods Corporation - Equity Valuation and Analysis
Essay by petmax • April 24, 2018 • Case Study • 2,288 Words (10 Pages) • 791 Views
Essay Preview: Hormel Foods Corporation - Equity Valuation and Analysis
Valuation Term Project: Hormel Foods (HRL)
Equity Valuation and Analysis
Student’s Name
Institution’s name
[pic 1]
Hormel Foods Corporation
Executive Summary
This presentation constitutes a valuation analysis of Hormel Corporation. Below is a summary of key financial data.
Investment Thesis Recommendation: undervalued at 26/10/2017- buy
Hormel Foods |
|
| |
Symbol: HRL |
| [pic 2] | |
|
|
|
|
General Information |
|
|
|
Company Name | Hormel Foods |
|
|
Headquaters | Austin, Minnesota |
|
|
CEO | Jim Snee |
|
|
Sector | Non-Cyclical Consumer Goods & Services | Valuations Estimates |
|
Industry | Animal Slaughtering & food Processing | Actual Price | $ 30.32 |
|
| Ratio Based Valuations |
|
Key Statistics | Trailing P/E | 18.72 | |
HRL-NYSE | $ 30.32 | Forward P/E | 18.49 |
52-Week range | $29.75 -$ 38.84 | P/B | 4.54 |
Revenues 2016 | $9,523,224.00 | EV/EBITDA | 10.7 |
Market Cap | 15.98 Billion | EV/Sales | 1.68 |
Profit Margin | 9.380% | Enterprise Value | 15.59B |
Shares outstanding | 527.83 million | PEG Ratio (5 yrS expected) 1 | 11.98 |
Total Cash | 633.34 million | ||
Total Debt | 250 million | Dividends |
|
Total Debt/Equity | 0.5 | Forward Annual Dividend Rate | 0.68 |
Operating Cash Flow | 882.64 million | Payout Ratio | 40.43% |
Equity to asset | 0.73 |
|
|
ROA | 14.23 | Instrinsic Valuation | |
ROE | 21.08 | Price-to-Net-Current-Asset-Value | 34.85 |
EPS | 1.64 | Price-to-Tangible-Book | 7.83 |
Beta | 0.21 | Price-to-Intrinsic-Value-Projected-FCF | 1.62 |
Comparables Analysis
Company | Symbol | Market Cap | Sales | EPS | Profit Margin | ROA | Beta | P/E | P/B | EV/EBITDA | D/E | EV/Sales |
Hormel Foods | HRL | 15.98 | 9.52 | 1.62 | 9.38% | 0.1363 | 0.21 | 18.79 | 3.37 | 10.70x | 0.05 | 1.68 |
Kellogg Co | K | 20.9 | 12.8 | 2.21 | 6.12% | 5.10% | 0.15 | 27.69 | 11.52 | 16.53x | 4.5 | 2.27x |
Campbell Soup Co | CPB | 13.89 | 7.89 | 2.89 | 11.24% | 11.40% | -0.01 | 16.01 | 8.53 | 9.91x | 2.16 | 2.18x |
Conagra Foods | CAG | 13.99 | 7.70 | 1.4 | 7.83% | 5.50% | 0.29 | 24.41 | 3.74 | 14.71x | 0.87 | 2.21x |
Mead Johnson Nutrition Co | MJN | 16.45 | 3.67 | 3.18 | 16.16% | 14.40% | - | 28.17 | 0 | 18.90x | -6.91 | 4.84x |
Average |
| 16.24 | 8.32 | 2.26 | 10.15% | 10.01% | 0.16 | 23.01 | 5.43 | 14.15x | 0.13 | 3.10x |
...
...