HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRL • US4404521001
25.3 USD
+0.68 (+2.76%)
At close: Feb 4, 2026
25.31 USD
+0.01 (+0.04%)
After Hours: 2/4/2026, 8:26:12 PM
We assign a fundamental rating of 4 out of 10 to HRL. HRL was compared to 87 industry peers in the Food Products industry. Both the profitability and the financial health of HRL get a neutral evaluation. Nothing too spectacular is happening here. HRL has a expensive valuation and it also scores bad on growth. 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.
- In the past year HRL had a positive cash flow from operations.
- In the past 5 years HRL has always been profitable.
- In the past 5 years HRL always reported a positive cash flow from operatings.
1.2 Ratios
- HRL has a better Return On Assets (3.57%) than 63.22% of its industry peers.
- HRL has a Return On Equity (6.05%) which is in line with its industry peers.
- The Return On Invested Capital of HRL (5.99%) is better than 65.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HRL is significantly below the industry average of 27.78%.
| 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.
- HRL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.94%, HRL is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
- In the last couple of years the Operating Margin of HRL has declined.
- The Gross Margin of HRL (15.70%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HRL has declined.
| 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.
- Compared to 5 years ago, HRL has more shares outstanding
- The debt/assets ratio for HRL is higher compared to a year ago.
2.2 Solvency
- HRL has an Altman-Z score of 3.59. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HRL (3.59) is better than 74.71% of its industry peers.
- HRL has a debt to FCF ratio of 5.35. This is a neutral value as HRL would need 5.35 years to pay back of all of its debts.
- HRL has a better Debt to FCF ratio (5.35) than 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.
- HRL has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: HRL outperforms 57.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.77
WACC7.73%
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 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.
- With a decent Quick ratio value of 1.20, HRL is doing good in the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for HRL have decreased strongly by -13.29% in the last year.
- HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.88% yearly.
- HRL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
- 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
- Based on estimates for the next years, HRL will show a small growth in Earnings Per Share. The EPS will grow by 5.70% on average per year.
- 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 2Y7.69%
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.47, the valuation of HRL can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as HRL.
- Compared to an average S&P500 Price/Earnings ratio of 28.25, HRL is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.10 indicates a rather expensive valuation of HRL.
- Based on the Price/Forward Earnings ratio, HRL is valued a bit cheaper than 66.67% of the companies in the same industry.
- HRL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- HRL's Enterprise Value to EBITDA is on the same level as the industry average.
- HRL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.04 | ||
| EV/EBITDA | 12.79 |
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 2Y7.69%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.79%, HRL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.33, HRL pays a better dividend. On top of this HRL pays more dividend than 83.91% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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 2Y7.69%
EPS Next 3Y7.32%
25.3
+0.68 (+2.76%)
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 Change-2.09%
Ins Owners0.15%
Ins Owner Change0.06%
Market Cap13.91B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (12.49%)
Short Float %6.79%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)-0.92%
PT rev (3m)-4.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-5.52%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.1 | ||
| P/S | 1.15 | ||
| P/FCF | 26.04 | ||
| P/OCF | 16.46 | ||
| P/B | 1.76 | ||
| P/tB | 10.46 | ||
| EV/EBITDA | 12.79 |
EPS(TTM)1.37
EY5.42%
EPS(NY)1.48
Fwd EY5.85%
FCF(TTM)0.97
FCFY3.84%
OCF(TTM)1.54
OCFY6.07%
SpS22.01
BVpS14.37
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 | 3.59 |
F-Score5
WACC7.73%
ROIC/WACC0.77
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 2Y7.69%
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 Year36.09%
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%.