Hormel Foods Corp
HRL: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$43.00 | Sqghwv | Qyrscxddc |
Hormel: Recent Headwinds Shouldn’t Threaten Dividend Aristocrat Status, but Shares Fairly Valued
We are raising our fair value estimate for Hormel Foods to $38 from $37.50, which implies a 21 times 2023 EPS multiple and an enterprise value to 2023 adjusted EBITDA of 15 times. The increase comes from a slightly more optimistic long-term outlook, with 2027 adjusted EBITDA of nearly $2.3 billion now 7% higher than our prior forecast, as we now expect a quicker recovery from recent headwinds at both the top line and margin.