Hormel Foods Executive Summary

Hormel Food Corporation knows what their consumers want because they are offering newer and healthier products. The corporation is starting to branch out into new countries, so they can continue to reach their consumers from all over the world. In addition to, Hormel is looking in to growing as a company and their capital because they want to explore in finding better things that fit their company and its goals. Hormel Food Corporation is continuing to make changes because they want everything that they do to match with their strategic vision (Schoonover). The first thing is that Hormel has the ability to maintain the dividend growth history that they have gone through in the recent years. They are always increasing dividends, which they have a strong growth rate. When a person looks at Hormel Food’s payout ratio …show more content…
The only thing that can affect Hormel is if there is another market declined. For example, sales were down in 2015 because of a market declined due to the influenza in the Jennie O Turkey. Another thing is dividend yield, when looking at this I feel that they are trading with yield that is below their past averages. I think this points to a slight overvaluation. Lastly, we need to look at the price to earnings ratio. Hormel Food Corporation is right where it should be because it is not showing overvaluation or undervaluation (BizMiner). In conclusion, when looking at Hormel Food Corporation a person will find that they are not on the top of the industry; but they are high up there. For them to be on the top of their industry they need to be discounted by at least another 10 percent because right now he/she can find that they are undervalued. Hormel Food Corporations biggest competitors are Tyson Foods and Kraft-Heinz. Hormel Foods has a long history when looking at dividend growth, consistent earnings, and the strong loyalty that they have with their products