Hormel Foods Corporation
_________________________________________________________________________________
Hormel Foods Corporation Financial Snapshot
Operating Performance
Fast Facts
1 Hormel Place, Austin, 55912,United The company reported revenue of US$7,220.72
Headquarters Address
States of America million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 5.88% during
Telephone + 1 507 4375345
2006–2010, with an annual growth of 10.52% over
2009. In 2010, the company recorded an operating
Fax + 1 507 4375489 margin of 8.95%, as against 8.21% in 2009.
Website www.hormelfoods.com
Revenue and Margins
Ticker Symbol, Stock Exchange HRL, New York Stock Exchange
Number of Employees 19,300
Fiscal Year End October
Revenue (in US$ million) 7,220.72
SWOT Analysis
Strengths Weaknesses Return on Equity
Extensive product offerings Geographic concentration The company recorded a return on equity (ROE) of
16.48% for 2010, as compared to its peers, General
Mills, Inc. (Ticker: GIS), Tyson Foods, Inc. (Ticker:
Market recognition Limited customer base TSN) and ConAgra Foods, Inc. (Ticker: CAG), which
recorded ROEs of 28.33%, 15.10% and 14.74%
Strong brand equity Product recall respectively. The company reported a net profit
margin of 8.95% in 2010.
Strong operating performance
Return on Equity
Opportunities Threats
Expansion plans Food contamination
New product development Shift towards vegetarianism
Strategic acquisition
Liquidity Position
The company reported a current ratio of 1.69 in 2010,
as compared to its peers, General Mills, Inc., Tyson
Foods, Inc. and ConAgra Foods, Inc., which recorded
current ratios of 0.92, 1.81 and 1.94 respectively. As
of October 2010, the company recorded cash and
short-term investments of worth US$518.44 million,
against US$350.00 million current debt. The company
reported a debt to equity ratio of 0.15 in 2010 as
compared to its peers, General Mills, Inc., Tyson
Foods, Inc. and ConAgra Foods, Inc., which recorded
debt to equity ratios of 1.19, 0.49 and 0.71
respectively.
___________________________________________________________________________________________
Hormel Foods Corporation - SWOT Profile Page 1
Hormel Foods Corporation
_________________________________________________________________________________
TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 9
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................9
2.2 Key Financial Performance Indicators .................................................................................................................12
2.2.1 Revenue and Operating Profit .........................................................................................................................12
2.2.2 Asset, Liabilities and Capex .............................................................................................................................13
2.2.3 Operational Efficiency ......................................................................................................................................14
2.2.4 Solvency ..........................................................................................................................................................15
2.2.5 Valuation ..........................................................................................................................................................16
2.3 Competitive Benchmarking ..................................................................................................................................17
2.3.1 Market Capitalization .......................................................................................................................................17
2.3.2 Efficiency ..........................................................................................................................................................18
2.3.3 Capital Expenditure ..........................................................................................................................................19
2.3.4 Valuation ..........................................................................................................................................................20
2.3.5 Turnover – Inventory and Asset.......................................................................................................................21
2.3.6 Liquidity ............................................................................................................................................................22
3 Mergers & Acquisitions and Partnerships ........................................................................................... 23
3.1 M&A and Partnerships Strategy ...........................................................................................................................23
4 Recent Developments ...............................................................................................................