[Seeking Alpha] Over the past 5 years, Hormel Foods Corp (NYSE:HRL) has managed to increase its profit margin while growing revenues at a high pace. The dividend growth rate is nothing short of amazing. The stock appears slightly overvalued compared to historical P/E and P/S ratios. However, large pullbacks are extremely rare. An investment at current prices will provide a decent growing stream of dividend income, with a current yield of 1.94%.
On November 25th, Hormel Foods Corporation (NYSE:HRL) announced its 49th consecutive dividend increase. The dividend was increased by 25%, to $0.25 quarterly. This dividend increase has tempted me to take a closer look at the company. To view the full article click here.
Hormel Foods Corp (HRL), On 11/25/2014, HRL reported 4 quarter 2014 earnings of $0.63 per share. This result was in-line with the consensus of the 8 analysts following the company and beat last year’s 4 quarter results by 8.62%.
The next earnings announcement is expected on 02/18/2015.
HRL’s PE ratio is above average for the Food Processing industry and signals that investors are willing to pay a premium for this stock. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.
Hormel Foods Corp (HRL)‘s PE ratio is among the lowest of any stock in the Semiconductors industry and signals that investors have not been willing to pay a premium for this company’s business prospects. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.
In terms of ratings, there are eight analysts that cover the stock which have provided Q1 2015 earnings per share estimates. The consensus anticipated number for the upcoming quarter is $0.64. The highest estimate is $0.67 while the lowest is $0.62. The company has a one year EPS growth rate of 14.53% and a five year EPS growth rate of 12.01%.
Hormel Foods is primarily engaged in the production of a variety of meat and food products and the marketing of those products throughout the United States and internationally. The Company markets its products through Hormel Foods International Corporation (HFIC), a wholly owned subsidiary. It operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store (JOTS), Specialty Foods, and International & Other. The meat products are sold fresh, frozen, cured, smoked, cooked, and canned. Perishable meat includes fresh meats, refrigerated meal solutions, sausages, hams, wieners, and bacon (excluding JOTS products). The Poultry category is composed primarily of JOTS products. On January 31, 2013, the Company acquired the United States based SKIPPY peanut butter business from Conopco, Inc. In August 2014, Hormel Foods Corporation acquired CytoSport Holdings, Inc.