HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRL - US4404521001 - Common Stock
24.43 USD
-0.13 (-0.53%)
24.35 USD
-0.08 (-0.33%)
Taking everything into account, HRL scores 4 out of 10 in our fundamental rating. HRL was compared to 87 industry peers in the Food Products industry. HRL has an average financial health and profitability rating. HRL has a expensive valuation and it also scores bad on growth. HRL also has an excellent dividend rating. With these ratings, HRL could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year HRL was profitable.
- In the past year HRL had a positive cash flow from operations.
- In the past 5 years HRL has always been profitable.
- HRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HRL has a Return On Assets of 3.57%. This is in the better half of the industry: HRL outperforms 63.22% of its industry peers.
- HRL has a Return On Equity (6.05%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 5.99%, HRL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HRL is significantly below the industry average of 27.79%.
| 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
- HRL's Profit Margin of 3.95% is fine compared to the rest of the industry. HRL outperforms 66.67% of its industry peers.
- In the last couple of years the Profit Margin of HRL has declined.
- With a decent Operating Margin value of 7.94%, HRL is doing good in the industry, outperforming 71.26% of the companies in the same industry.
- HRL's Operating Margin has declined in the last couple of years.
- The Gross Margin of HRL (15.70%) is comparable to the rest of the industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRL 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 3.58. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- HRL has a Altman-Z score of 3.58. This is in the better half of the industry: HRL outperforms 74.71% 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.
- HRL has a Debt to FCF ratio of 5.35. This is in the better half of the industry: HRL outperforms 77.01% 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.
- With a Debt to Equity ratio value of 0.36, HRL perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.78
WACC7.71%
2.3 Liquidity
- A Current Ratio of 2.47 indicates that HRL has no problem at all paying its short term obligations.
- HRL has a better Current ratio (2.47) than 71.26% 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 has a better Quick ratio (1.20) than 68.97% 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%.
- The Earnings Per Share has been decreasing by -3.88% on average over the past years.
- Looking at the last year, HRL shows a small growth in Revenue. The Revenue has grown by 1.55% in the last year.
- HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
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
- The Earnings Per Share is expected to grow by 5.70% on average over the next years.
- The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y7.79%
EPS Next 3Y7.32%
EPS Next 5Y5.7%
Revenue Next Year2.06%
Revenue Next 2Y2.15%
Revenue Next 3Y2.08%
Revenue Next 5Y1.92%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 17.83, which indicates a rather expensive current valuation of HRL.
- HRL's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.32. HRL is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of HRL.
- HRL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 64.37% 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 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRL is on the same level as its industry peers.
- HRL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 12.7 |
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)2.19
PEG (5Y)N/A
EPS Next 2Y7.79%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.73%, HRL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.28, HRL pays a better dividend. On top of this HRL pays more dividend than 83.91% of the companies listed in the same industry.
- HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
- The dividend of HRL has a limited annual growth rate of 4.90%.
- HRL has been paying a dividend for at least 10 years, so it has 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 2Y7.79%
EPS Next 3Y7.32%
24.43
-0.13 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)02-25 2026-02-25/bmo
Inst Owners91.37%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change0.06%
Market Cap13.44B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (16.5%)
Short Float %6.93%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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)-0.52%
PT rev (3m)-4.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)0.97%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 16.49 | ||
| P/S | 1.11 | ||
| P/FCF | 25.15 | ||
| P/OCF | 15.9 | ||
| P/B | 1.7 | ||
| P/tB | 10.1 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)1.37
EY5.61%
EPS(NY)1.48
Fwd EY6.06%
FCF(TTM)0.97
FCFY3.98%
OCF(TTM)1.54
OCFY6.29%
SpS22.01
BVpS14.37
TBVpS2.42
PEG (NY)2.19
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 | 3.58 |
F-Score5
WACC7.71%
ROIC/WACC0.78
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 Y8.13%
EPS Next 2Y7.79%
EPS Next 3Y7.32%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
Revenue Next Year2.06%
Revenue Next 2Y2.15%
Revenue Next 3Y2.08%
Revenue Next 5Y1.92%
EBIT growth 1Y-5.53%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year36.18%
EBIT Next 3Y11.82%
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 8.13% 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%.