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Hormel Foods ROE %

: 14.49% (As of Apr. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Hormel Foods's annualized net income attributable to common stockholders for the quarter that ended in Apr. 2022 was $1,046 Mil. Hormel Foods's average Total Stockholders Equity over the quarter that ended in Apr. 2022 was $7,220 Mil. Therefore, Hormel Foods's annualized ROE % for the quarter that ended in Apr. 2022 was 14.49%.

The historical rank and industry rank for Hormel Foods's ROE % or its related term are showing as below:

HRL' s ROE % Range Over the Past 10 Years
Min: 13.57   Med: 17.74   Max: 21.08
Current: 13.75

During the past 13 years, Hormel Foods's highest ROE % was 21.08%. The lowest was 13.57%. And the median was 17.74%.

HRL's ROE % is ranked better than
74.03% of 1752 companies
in the Consumer Packaged Goods industry
Industry Median: 6.79 vs HRL: 13.75

Hormel Foods ROE % Historical Data

The historical data trend for Hormel Foods's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hormel Foods Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.05 19.21 16.99 14.71 13.57

Hormel Foods Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.76 10.49 16.38 13.62 14.49

Competitive Comparison

For the Packaged Foods subindustry, Hormel Foods's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Hormel Foods ROE % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's ROE % distribution charts can be found below:

* The bar in red indicates where Hormel Foods's ROE % falls into.



Hormel Foods ROE % Calculation

Hormel Foods's annualized ROE % for the fiscal year that ended in Oct. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Oct. 2021 )/( (Total Stockholders Equity (A: Oct. 2020 )+Total Stockholders Equity (A: Oct. 2021 ))/ count )
=908.839/( (6425.548+6972.883)/ 2 )
=908.839/6699.2155
=13.57 %

Hormel Foods's annualized ROE % for the quarter that ended in Apr. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Apr. 2022 )/( (Total Stockholders Equity (Q: Jan. 2022 )+Total Stockholders Equity (Q: Apr. 2022 ))/ count )
=1046.468/( (7100.589+7339.402)/ 2 )
=1046.468/7219.9955
=14.49 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Hormel Foods  (NYSE:HRL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1046.468/7219.9955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1046.468 / 12386.236)*(12386.236 / 12974.636)*(12974.636 / 7219.9955)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.45 %*0.9546*1.797
=ROA %*Equity Multiplier
=8.07 %*1.797
=14.49 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1046.468/7219.9955
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1046.468 / 1287.472) * (1287.472 / 1315.248) * (1315.248 / 12386.236) * (12386.236 / 12974.636) * (12974.636 / 7219.9955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8128 * 0.9789 * 10.62 % * 0.9546 * 1.797
=14.49 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Apr. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Hormel Foods ROE % Related Terms

Thank you for viewing the detailed overview of Hormel Foods's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hormel Foods Business Description

Hormel Foods logo
Industry
Address
1 Hormel Place, Austin, MN, USA, 55912-3680
Hormel Foods is a protein-focused branded food company. Its brands include its namesake Hormel, Spam, Jennie-O, Dinty Moore, Applegate, Wholly Guacamole, and Skippy. The vast majority of the company's revenue is U.S.-based: 64% U.S. retail, 28% U.S. food service, and 8% international. By product type, in fiscal 2021, 23% of revenue was shelf-stable foods, 18% was poultry (branded and commodity), 55% was other perishable food, and 3% was other, primarily nutritional products. The company holds the number-one market position in shelf-stable meat, shelf-stable ready meals, pepperoni, natural/organic deli meat, and guacamole and the number-two position in turkey, bacon, chilled ready meals, and peanut butter.
Executives
Neufeldt Swen officer: Group Vice President 1 HORMEL PLACE AUSTIN MN 55912
Prado Becerra Jose Luis director 50 S. LASALLE STREET CHICAGO IL 60603
Smith Sally J director 5500 WAYZATA BLVD. SUITE 1600 MINNEAPOLIS MN 55416
Policinski Christopher J. director 4001 LEXINGTON AVENUE N. ARDEN HILLS MN 55126
Newlands William A director C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DR., BUILDING 100 VICTOR NY 14564
Bhojwani Gary C director 1 HORMEL PLACE AUSTIN MN 55912
White Steven Andrew director 1 HORMEL PLACE AUSTIN MN 55912
Brady Deanna T officer: Executive Vice President 1 HORMEL STREET AUSTIN MN 55912
Marco Lori J officer: Senior VP & General Counsel 1 HORMEL PLACE AUSTIN MN 55912
Jamison Gary officer: Vice President and Treasurer C/O PACIFICHEALTH LABORATORIES, INC. 100 MATAWAN ROAD SUITE 420 MATAWAN NJ 07747
Marconi Luis G officer: Group Vice President 1 HORMEL PLACE AUSTIN MN 55912
Leitch Glenn R officer: Executive Vice President 1 HORMEL PLACE AUSTIN MN 55912-3680
Murano Elsa A director 1 HORMEL PLACE AUSTIN MN 55912-3680
Nestegard Susan K director AMERICAN CAPITAL, LTD. 2 BETHESDA METRO, 14TH FLOOR BETHESDA MD 20814
Splinter James M officer: Group Vice President PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SPLINTER JAMES M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Hormel Foods Headlines

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