Are Poor Financial Prospects Dragging Down Hormel Foods Corporation (NYSE:HRL Stock?
Are Poor Financial Prospects Dragging Down Hormel Foods Corporation (NYSE:HRL Stock?
It is hard to get excited after looking at Hormel Foods' (NYSE:HRL) recent performance, when its stock has declined 14% over the past month. To decide if this trend could continue, we decided to look at its weak fundamentals as they shape the long-term market trends. In this article, we decided to focus on Hormel Foods' ROE.
荷美爾食品（NYSE:HRL）最近表現不佳，股價在過去一個月內下跌了14%。爲了判斷這一趨勢是否會繼續，我們決定研究公司的基本面，因爲它們塑造了長期的市場趨勢。在本文中，我們決定關注荷美爾食品的roe。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或roe是一項關鍵指標，用於評估公司管理層使用公司資本的效率。換句話說，它揭示了公司將股東的投資轉化爲利潤的成功。
How Is ROE Calculated?
淨資產收益率怎麼計算？
The formula for return on equity is:
權益回報率的計算公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤（從持續經營中獲得）÷ 股東權益
So, based on the above formula, the ROE for Hormel Foods is:
因此，根據以上公式，荷美爾食品的roe爲：
9.7% = US$766m ÷ US$7.9b (Based on the trailing twelve months to April 2024).
9.7％ = 7.9十億美元的過去十二個月收益 ÷ 766百萬美元的淨利潤（截至2024年4月）。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.10 in profit.
“回報”是過去十二個月的利潤。另一種思考方式是，對於每個1美元的股本，公司能夠賺取0.10美元的利潤。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
因此，我們已經了解到ROE衡量公司如何高效地創造利潤。根據公司重新投資或“保留”的利潤數量以及其有效性，我們隨後能夠評估公司的收益增長潛力。假設其他所有因素均保持不變，則ROE和利潤保留率越高，相對於不一定具備這些特徵的公司，公司的增長率就越高。
Hormel Foods' Earnings Growth And 9.7% ROE
荷美爾食品的盈利增長和9.7％的roe。
At first glance, Hormel Foods' ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 14% either. For this reason, Hormel Foods' five year net income decline of 2.8% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
乍一看，荷美爾食品的roe似乎並不十分令人滿意。進一步的研究顯示，該公司的roe與行業平均水平14％相比也沒有優勢。因此，考慮到其較低的roe，荷美爾食品五年淨利潤下降2.8％並不令人驚訝。但是，也可能有其他因素導致收益下降。例如，公司的派息比率非常高，或者面臨競爭壓力。
However, when we compared Hormel Foods' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 11% in the same period. This is quite worrisome.
然而，當我們將荷美爾食品的增長與行業相比較時，我們發現，雖然公司的收益一直在縮水，但行業在同一時期的收益增長了11％，這非常令人擔憂。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. What is HRL worth today? The intrinsic value infographic in our free research report helps visualize whether HRL is currently mispriced by the market.
對於一個公司來說，價值是很大程度上與其盈利增長相關的。投資者了解市場是否已經定價了公司預期的盈利增長（或下降）對他們判斷股票未來走勢非常重要。那麼HRL今天的價值是多少？我們免費研究報告中的內在價值信息圖表可幫助判斷HRL當前是否被錯價。
Is Hormel Foods Efficiently Re-investing Its Profits?
荷美爾食品有效地再投資利潤嗎？
Hormel Foods has a high three-year median payout ratio of 60% (that is, it is retaining 40% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run.
荷美爾食品擁有高達60％的三年中位數派息比率（即它將40％的利潤留作股息分配給股東），這表明公司將大多數利潤作爲股息支付給股東。這在一定程度上解釋了爲什麼其盈利一直在縮水。公司只剩下很少的資本來再投資，這是一種惡性循環，長期來看對公司沒有好處。此外，荷美爾食品已經連續十年派息，這表明即使以犧牲業務增長爲代價，維持派息支付對管理層來說更爲重要。根據最新的分析師估計，我們發現公司未來三年的派息比率預計將保持在63％的穩定水平。因此，我們從分析師對未來roe的11％的估計中推斷出，荷美爾食品的roe不會有太大的變化。
In addition, Hormel Foods has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 63%. As a result, Hormel Foods' ROE is not expected to change by much either, which we inferred from the analyst estimate of 11% for future ROE.
總的來說，荷美爾食品的表現相當令人失望。由於留下的利潤非常少，而所保留下來的利潤再投資的回報率非常低，公司一直沒有實現盈利的增長。不過，從目前的分析師估計來看，我們發現公司的盈利增長率有望得到巨大改善。要了解有關該公司未來盈利增長預測的更多信息，請查看此免費報告中的分析師預測。
Summary
總的來說，我們對偉明環保的表現非常滿意。具體而言，我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然，這導致公司的收益大幅增長。但是，最新的行業分析師預測表明，該公司的收益預計將加速增長。
On the whole, Hormel Foods' performance is quite a big let-down. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
荷美爾食品的表現相當令人失望。由於留下的利潤非常少且再投資回報率非常低，公司的收益一直在縮水。不過，從目前的分析師估計來看，我們發現公司的盈利增長率有望得到巨大改善。
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