I've been looking at HRL lately, and some of the numbers look decent: an annual net income of $1 billion during FY 2022, a forward P/E slightly higher than the current P/E, and it seems to be sitting at a support level on the chart ($40) where buyers have shown willingness to come in.
I am concerned about its debt though. It seems like, during the pandemic, it took on a huge amount of debt ($3.3 billion), although during and before 2020, it frequently held far more cash than debt. What was causing its debt to skyrocket so suddenly?
I know it owns a bunch of well-known brands (Jennie-O, Corn Nuts, Planters, Spam, and Skippy just to name a few). Please feel free to provide anything you know about HRL. In particular, I'm curious about how much of an edge it has on its competitors as well as potential risks it may face.
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