HORMEL FOODS CORP (HRL) Fundamental Analysis & Valuation

NYSE:HRL • US4404521001

Current stock price

20.365 USD
-0.21 (-1.04%)
Last:

This HRL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. HRL Profitability Analysis

1.1 Basic Checks

  • In the past year HRL was profitable.
  • In the past year HRL had a positive cash flow from operations.
  • HRL had positive earnings in each of the past 5 years.
  • Each year in the past 5 years HRL had a positive operating cash flow.
HRL Yearly Net Income VS EBIT VS OCF VS FCFHRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • HRL's Return On Assets of 3.68% is fine compared to the rest of the industry. HRL outperforms 66.67% of its industry peers.
  • With a decent Return On Equity value of 6.17%, HRL is doing good in the industry, outperforming 63.22% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 5.88%, HRL is in the better half of the industry, outperforming 65.52% 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 in line with the industry average of 6.75%.
Industry RankSector Rank
ROA 3.68%
ROE 6.17%
ROIC 5.88%
ROA(3y)5.15%
ROA(5y)6.03%
ROE(3y)8.79%
ROE(5y)10.54%
ROIC(3y)6.47%
ROIC(5y)6.94%
HRL Yearly ROA, ROE, ROICHRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • HRL has a better Profit Margin (4.03%) than 67.82% of its industry peers.
  • HRL's Profit Margin has declined in the last couple of years.
  • HRL's Operating Margin of 7.79% is fine compared to the rest of the industry. HRL outperforms 66.67% of its industry peers.
  • In the last couple of years the Operating Margin of HRL has declined.
  • HRL has a Gross Margin of 15.61%. This is comparable to the rest of the industry: HRL outperforms 45.98% of its industry peers.
  • In the last couple of years the Gross Margin of HRL has declined.
Industry RankSector Rank
OM 7.79%
PM (TTM) 4.03%
GM 15.61%
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%
HRL Yearly Profit, Operating, Gross MarginsHRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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5

2. HRL Health Analysis

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.
  • Compared to 1 year ago, HRL has more shares outstanding
  • Compared to 5 years ago, HRL has more shares outstanding
  • HRL has a worse debt/assets ratio than last year.
HRL Yearly Shares OutstandingHRL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
HRL Yearly Total Debt VS Total AssetsHRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • HRL has an Altman-Z score of 3.41. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
  • HRL's Altman-Z score of 3.41 is fine compared to the rest of the industry. HRL outperforms 72.41% of its industry peers.
  • The Debt to FCF ratio of HRL is 4.95, which is a neutral value as it means it would take HRL, 4.95 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.95, HRL is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
  • A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
  • HRL's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. HRL outperforms 57.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 4.95
Altman-Z 3.41
ROIC/WACC0.78
WACC7.56%
HRL Yearly LT Debt VS Equity VS FCFHRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 2.66 indicates that HRL has no problem at all paying its short term obligations.
  • HRL's Current ratio of 2.66 is fine compared to the rest of the industry. HRL outperforms 77.01% of its industry peers.
  • A Quick Ratio of 1.37 indicates that HRL should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.37, HRL is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.66
Quick Ratio 1.37
HRL Yearly Current Assets VS Current LiabilitesHRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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3

3. HRL Growth Analysis

3.1 Past

  • HRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.53%.
  • 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 1.95%.
  • HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
EPS 1Y (TTM)-10.53%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.29%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.70% on average over the next years.
  • Based on estimates for the next years, HRL will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y9.04%
EPS Next 2Y8.05%
EPS Next 3Y7.66%
EPS Next 5Y5.7%
Revenue Next Year1.35%
Revenue Next 2Y1.59%
Revenue Next 3Y1.86%
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.
  • 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.
HRL Yearly Revenue VS EstimatesHRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
HRL Yearly EPS VS EstimatesHRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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5

4. HRL Valuation Analysis

4.1 Price/Earnings Ratio

  • HRL is valuated correctly with a Price/Earnings ratio of 14.97.
  • Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 66.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, HRL is valued a bit cheaper.
  • HRL is valuated correctly with a Price/Forward Earnings ratio of 12.73.
  • HRL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 78.16% of the companies in the same industry.
  • HRL is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.97
Fwd PE 12.73
HRL Price Earnings VS Forward Price EarningsHRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
  • HRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HRL is cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.4
EV/EBITDA 11.07
HRL Per share dataHRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • HRL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y7.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. HRL Dividend Analysis

5.1 Amount

  • HRL has a Yearly Dividend Yield of 5.54%, which is a nice return.
  • HRL's Dividend Yield is rather good when compared to the industry average which is at 2.19. HRL pays more dividend than 83.91% of the companies in the same industry.
  • HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 5.54%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.9%
Div Incr Years34
Div Non Decr Years34
HRL Yearly Dividends per shareHRL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HRL pays out 130.30% of its income as dividend. This is not a sustainable payout ratio.
  • HRL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP130.3%
EPS Next 2Y8.05%
EPS Next 3Y7.66%
HRL Yearly Income VS Free CF VS DividendHRL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
HRL Dividend Payout.HRL Dividend Payout, showing the Payout Ratio.HRL Dividend Payout.PayoutRetained Earnings

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HRL Fundamentals: All Metrics, Ratios and Statistics

HORMEL FOODS CORP

NYSE:HRL (4/13/2026, 10:28:50 AM)

20.365

-0.21 (-1.04%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners92%
Inst Owner Change-0.01%
Ins Owners0.18%
Ins Owner Change0.07%
Market Cap11.21B
Revenue(TTM)12.14B
Net Income(TTM)489.42M
Analysts70.67
Price Target28.35 (39.21%)
Short Float %6.82%
Short Ratio4.26
Dividend
Industry RankSector Rank
Dividend Yield 5.54%
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP130.3%
Div Incr Years34
Div Non Decr Years34
Ex-Date04-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)4.83%
Max EPS beat(2)4.95%
EPS beat(4)3
Avg EPS beat(4)-1.13%
Min EPS beat(4)-15.34%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)-0.9%
EPS beat(12)7
Avg EPS beat(12)0.34%
EPS beat(16)9
Avg EPS beat(16)-0.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-2.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)3
Avg Revenue beat(12)-1.66%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)0.41%
PT rev (3m)-1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 14.97
Fwd PE 12.73
P/S 0.92
P/FCF 19.4
P/OCF 12.66
P/B 1.41
P/tB 7.67
EV/EBITDA 11.07
EPS(TTM)1.36
EY6.68%
EPS(NY)1.6
Fwd EY7.85%
FCF(TTM)1.05
FCFY5.15%
OCF(TTM)1.61
OCFY7.9%
SpS22.07
BVpS14.43
TBVpS2.66
PEG (NY)1.66
PEG (5Y)N/A
Graham Number21.01
Profitability
Industry RankSector Rank
ROA 3.68%
ROE 6.17%
ROCE 7.86%
ROIC 5.88%
ROICexc 6.36%
ROICexgc 15.19%
OM 7.79%
PM (TTM) 4.03%
GM 15.61%
FCFM 4.76%
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 Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 4.95
Debt/EBITDA 2.35
Cap/Depr 116.07%
Cap/Sales 2.53%
Interest Coverage 250
Cash Conversion 73.06%
Profit Quality 118%
Current Ratio 2.66
Quick Ratio 1.37
Altman-Z 3.41
F-Score5
WACC7.56%
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)-10.53%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-2.86%
EPS Next Y9.04%
EPS Next 2Y8.05%
EPS Next 3Y7.66%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.29%
Revenue Next Year1.35%
Revenue Next 2Y1.59%
Revenue Next 3Y1.86%
Revenue Next 5Y1.92%
EBIT growth 1Y-4.05%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year35.4%
EBIT Next 3Y13.09%
EBIT Next 5Y14.86%
FCF growth 1Y-40.33%
FCF growth 3Y-14.54%
FCF growth 5Y-6.82%
OCF growth 1Y-29.08%
OCF growth 3Y-9.36%
OCF growth 5Y-5.61%

HORMEL FOODS CORP / HRL Fundamental Analysis FAQ

What is the fundamental rating for HRL stock?

ChartMill assigns a fundamental rating of 5 / 10 to HRL.


Can you provide the valuation status for HORMEL FOODS CORP?

ChartMill assigns a valuation rating of 5 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Fairly Valued.


Can you provide the profitability details for HORMEL FOODS CORP?

HORMEL FOODS CORP (HRL) has a profitability rating of 5 / 10.


What are the PE and PB ratios of HORMEL FOODS CORP (HRL) stock?

The Price/Earnings (PE) ratio for HORMEL FOODS CORP (HRL) is 14.97 and the Price/Book (PB) ratio is 1.41.


What is the financial health of HORMEL FOODS CORP (HRL) stock?

The financial health rating of HORMEL FOODS CORP (HRL) is 5 / 10.