HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
NYSE:HRL • US4404521001
25.31 USD
-0.49 (-1.9%)
At close: Feb 25, 2026
25.33 USD
+0.02 (+0.08%)
Pre-Market: 2/26/2026, 4:44:30 AM
Overall HRL gets a fundamental rating of 4 out of 10. We evaluated HRL against 88 industry peers in the Food Products industry. HRL has only an average score on both its financial health and profitability. HRL is valued expensive and it does not seem to be growing. HRL also has an excellent dividend rating. This makes HRL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- HRL had positive earnings in the past year.
- HRL had a positive operating cash flow in the past year.
- Each year in the past 5 years HRL has been profitable.
- Each year in the past 5 years HRL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.57%, HRL is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- HRL has a Return On Equity of 6.05%. This is in the better half of the industry: HRL outperforms 63.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.99%, HRL is in the better half of the industry, outperforming 67.05% of the companies in the same industry.
- HRL had an Average Return On Invested Capital over the past 3 years of 6.47%. This is significantly below the industry average of 28.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 6.05% | ||
| ROIC | 5.99% |
ROA(3y)5.15%
ROA(5y)6.03%
ROE(3y)8.79%
ROE(5y)10.54%
ROIC(3y)6.47%
ROIC(5y)6.94%
1.3 Margins
- The Profit Margin of HRL (3.95%) is better than 70.45% of its industry peers.
- In the last couple of years the Profit Margin of HRL has declined.
- HRL's Operating Margin of 7.94% is fine compared to the rest of the industry. HRL outperforms 70.45% of its industry peers.
- HRL's Operating Margin has declined in the last couple of years.
- HRL has a Gross Margin of 15.70%. This is comparable to the rest of the industry: HRL outperforms 44.32% of its industry peers.
- HRL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | 3.95% | ||
| GM | 15.7% |
OM growth 3Y-8.39%
OM growth 5Y-6.45%
PM growth 3Y-21.05%
PM growth 5Y-16.01%
GM growth 3Y-3.32%
GM growth 5Y-3.74%
2. Health
2.1 Basic Checks
- HRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HRL has been increased compared to 1 year ago.
- HRL has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for HRL is higher compared to a year ago.
2.2 Solvency
- HRL has an Altman-Z score of 3.63. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- HRL has a Altman-Z score of 3.63. This is in the better half of the industry: HRL outperforms 75.00% of its industry peers.
- The Debt to FCF ratio of HRL is 5.35, which is a neutral value as it means it would take HRL, 5.35 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HRL (5.35) is better than 75.00% of its industry peers.
- HRL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- HRL has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: HRL outperforms 56.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.8
WACC7.53%
2.3 Liquidity
- HRL has a Current Ratio of 2.47. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
- HRL has a Current ratio of 2.47. This is in the better half of the industry: HRL outperforms 69.32% of its industry peers.
- A Quick Ratio of 1.20 indicates that HRL should not have too much problems paying its short term obligations.
- HRL's Quick ratio of 1.20 is fine compared to the rest of the industry. HRL outperforms 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- HRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.29%.
- Measured over the past years, HRL shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.88% on average per year.
- The Revenue has been growing slightly by 1.55% in the past year.
- The Revenue has been growing slightly by 4.73% on average over the past years.
EPS 1Y (TTM)-13.29%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
3.2 Future
- HRL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.70% yearly.
- HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y8%
EPS Next 2Y7.65%
EPS Next 3Y7.25%
EPS Next 5Y5.7%
Revenue Next Year1.96%
Revenue Next 2Y2.11%
Revenue Next 3Y2.03%
Revenue Next 5Y1.92%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.47, which indicates a rather expensive current valuation of HRL.
- Based on the Price/Earnings ratio, HRL is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of HRL to the average of the S&P500 Index (27.05), we can say HRL is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.11, HRL is valued on the expensive side.
- HRL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 68.18% of the companies in the same industry.
- HRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.11 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.06 | ||
| EV/EBITDA | 13.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HRL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.31
PEG (5Y)N/A
EPS Next 2Y7.65%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.77%, HRL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.27, HRL pays a better dividend. On top of this HRL pays more dividend than 84.09% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
- The dividend of HRL has a limited annual growth rate of 4.90%.
- HRL has paid a dividend for at least 10 years, which is a reliable track record.
- HRL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.9%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 132.41% of the earnings are spent on dividend by HRL. This is not a sustainable payout ratio.
- The dividend of HRL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP132.41%
EPS Next 2Y7.65%
EPS Next 3Y7.25%
25.31
-0.49 (-1.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)02-26 2026-02-26/bmo
Inst Owners91.37%
Inst Owner Change1.14%
Ins Owners0.15%
Ins Owner Change0.07%
Market Cap13.92B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (12.45%)
Short Float %6.81%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP132.41%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-12 2026-01-12 (0.2925)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.19%
Min EPS beat(2)-15.34%
Max EPS beat(2)4.95%
EPS beat(4)2
Avg EPS beat(4)-4.26%
Min EPS beat(4)-15.34%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)1.16%
EPS beat(12)6
Avg EPS beat(12)-1.1%
EPS beat(16)8
Avg EPS beat(16)-0.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.37%
PT rev (1m)0%
PT rev (3m)0.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.11 | ||
| P/S | 1.15 | ||
| P/FCF | 26.06 | ||
| P/OCF | 16.47 | ||
| P/B | 1.76 | ||
| P/tB | 10.47 | ||
| EV/EBITDA | 13.1 |
EPS(TTM)1.37
EY5.41%
EPS(NY)1.48
Fwd EY5.85%
FCF(TTM)0.97
FCFY3.84%
OCF(TTM)1.54
OCFY6.07%
SpS22.01
BVpS14.36
TBVpS2.42
PEG (NY)2.31
PEG (5Y)N/A
Graham Number21.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 6.05% | ||
| ROCE | 8% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 15.18% | ||
| OM | 7.94% | ||
| PM (TTM) | 3.95% | ||
| GM | 15.7% | ||
| FCFM | 4.41% |
ROA(3y)5.15%
ROA(5y)6.03%
ROE(3y)8.79%
ROE(5y)10.54%
ROIC(3y)6.47%
ROIC(5y)6.94%
ROICexc(3y)6.91%
ROICexc(5y)7.44%
ROICexgc(3y)17.7%
ROICexgc(5y)19.44%
ROCE(3y)8.65%
ROCE(5y)9.27%
ROICexgc growth 3Y-13.48%
ROICexgc growth 5Y-10.67%
ROICexc growth 3Y-10.55%
ROICexc growth 5Y-11.83%
OM growth 3Y-8.39%
OM growth 5Y-6.45%
PM growth 3Y-21.05%
PM growth 5Y-16.01%
GM growth 3Y-3.32%
GM growth 5Y-3.74%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 117.81% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 12.88 | ||
| Cash Conversion | 69.03% | ||
| Profit Quality | 111.74% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.63 |
F-Score5
WACC7.53%
ROIC/WACC0.8
Cap/Depr(3y)107.99%
Cap/Depr(5y)106.38%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.25%
Profit Quality(3y)111.74%
Profit Quality(5y)101.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.29%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-23.81%
EPS Next Y8%
EPS Next 2Y7.65%
EPS Next 3Y7.25%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
Revenue Next Year1.96%
Revenue Next 2Y2.11%
Revenue Next 3Y2.03%
Revenue Next 5Y1.92%
EBIT growth 1Y-5.53%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year36.09%
EBIT Next 3Y12.4%
EBIT Next 5Y14.86%
FCF growth 1Y-47.11%
FCF growth 3Y-14.54%
FCF growth 5Y-6.82%
OCF growth 1Y-33.27%
OCF growth 3Y-9.36%
OCF growth 5Y-5.61%
HORMEL FOODS CORP / HRL FAQ
What is the fundamental rating for HRL stock?
ChartMill assigns a fundamental rating of 4 / 10 to HRL.
What is the valuation status for HRL stock?
ChartMill assigns a valuation rating of 3 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Overvalued.
What is the profitability of HRL stock?
HORMEL FOODS CORP (HRL) has a profitability rating of 5 / 10.
What is the earnings growth outlook for HORMEL FOODS CORP?
The Earnings per Share (EPS) of HORMEL FOODS CORP (HRL) is expected to grow by 8% in the next year.
Can you provide the dividend sustainability for HRL stock?
The dividend rating of HORMEL FOODS CORP (HRL) is 7 / 10 and the dividend payout ratio is 132.41%.