HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRL • US4404521001
24.93 USD
-0.16 (-0.64%)
At close: Feb 6, 2026
24.93 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
Overall HRL gets a fundamental rating of 4 out of 10. We evaluated HRL against 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 is valued expensive and it does not seem to be growing. Finally HRL also has an excellent dividend rating. This makes HRL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year HRL was profitable.
- HRL had a positive operating cash flow in the past year.
- 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's Return On Assets of 3.57% is fine compared to the rest of the industry. HRL outperforms 63.22% of its industry peers.
- HRL has a Return On Equity (6.05%) which is in line with 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 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 27.76%.
| 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 has a Profit Margin of 3.95%. This is in the better half 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.
- HRL's Gross Margin of 15.70% is in line compared to the rest of the industry. HRL outperforms 42.53% of its industry peers.
- 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.
- HRL has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HRL has been increased compared to 5 years ago.
- Compared to 1 year ago, HRL has a worse debt to assets ratio.
2.2 Solvency
- HRL has an Altman-Z score of 3.62. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.62, HRL is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 5.35, HRL is doing good in the industry, outperforming 77.01% 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 has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.78
WACC7.67%
2.3 Liquidity
- A Current Ratio of 2.47 indicates that HRL has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.47, HRL is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
- A Quick Ratio of 1.20 indicates that HRL should not have too much problems paying its short term obligations.
- HRL has a Quick ratio of 1.20. This is in the better half of the industry: HRL outperforms 67.82% of its industry peers.
| 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.
- 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.
- Measured over the past years, HRL shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
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%
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
- HRL is valuated rather expensively with a Price/Earnings ratio of 18.20.
- HRL's Price/Earnings is on the same level as the industry average.
- HRL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.85, the valuation of HRL can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 66.67% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.78. HRL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HRL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.66 | ||
| EV/EBITDA | 13 |
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)2.28
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 2.32, 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 1.83, 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 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
- HRL pays out 132.41% of its income as dividend. 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%
24.93
-0.16 (-0.64%)
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 Cap13.71B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (14.16%)
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 | 18.2 | ||
| Fwd PE | 16.85 | ||
| P/S | 1.13 | ||
| P/FCF | 25.66 | ||
| P/OCF | 16.22 | ||
| P/B | 1.74 | ||
| P/tB | 10.31 | ||
| EV/EBITDA | 13 |
EPS(TTM)1.37
EY5.5%
EPS(NY)1.48
Fwd EY5.93%
FCF(TTM)0.97
FCFY3.9%
OCF(TTM)1.54
OCFY6.16%
SpS22.01
BVpS14.37
TBVpS2.42
PEG (NY)2.28
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 | 3.62 |
F-Score5
WACC7.67%
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%
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%.