HORMEL FOODS CORP (HRL) Stock Fundamental Analysis

NYSE:HRL • US4404521001

25.6 USD
+0.78 (+3.14%)
At close: Feb 27, 2026
25.6 USD
0 (0%)
After Hours: 2/27/2026, 8:08:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

HRL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 88 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. These ratings could make HRL a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

5

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.
  • HRL had a positive operating cash flow in each of the past 5 years.
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

  • With a decent Return On Assets value of 3.57%, HRL is doing good in the industry, outperforming 65.91% of the companies in the same industry.
  • With a decent Return On Equity value of 6.05%, HRL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • The Return On Invested Capital of HRL (5.99%) is better than 67.05% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HRL is significantly below the industry average of 28.22%.
Industry RankSector 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%
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 Profit Margin of 3.95%. This is in the better half of the industry: HRL outperforms 68.18% of its industry peers.
  • HRL's Profit Margin has declined in the last couple of years.
  • HRL has a better Operating Margin (7.94%) than 70.45% of its industry peers.
  • HRL's Operating Margin has declined in the last couple of years.
  • HRL has a Gross Margin (15.70%) which is comparable to the rest of the industry.
  • HRL's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • 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 3.65. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
  • HRL's Altman-Z score of 3.65 is fine compared to the rest of the industry. HRL outperforms 73.86% 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.
  • A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
  • 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 RankSector Rank
Debt/Equity 0.36
Debt/FCF 5.35
Altman-Z 3.65
ROIC/WACC0.8
WACC7.49%
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 2.47 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 69.32% 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.
  • With a decent Quick ratio value of 1.20, HRL is doing good in the industry, outperforming 67.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.47
Quick Ratio 1.2
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The earnings per share for HRL have decreased strongly by -10.53% in the last year.
  • The Earnings Per Share has been decreasing by -3.88% on average over the past years.
  • HRL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
  • 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)-10.53%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.29%

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.
  • 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 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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.82, which indicates a rather expensive current valuation of HRL.
  • HRL's Price/Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 62.50% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. HRL is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 16.12, HRL is valued correctly.
  • Based on the Price/Forward Earnings ratio, HRL is valued a bit cheaper than 69.32% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, HRL is valued a bit cheaper.
Industry RankSector Rank
PE 18.82
Fwd PE 16.12
HRL Price Earnings VS Forward Price EarningsHRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as HRL.
Industry RankSector Rank
P/FCF 26.36
EV/EBITDA 13.23
HRL Per share dataHRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)2.35
PEG (5Y)N/A
EPS Next 2Y7.65%
EPS Next 3Y7.25%

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

7

5. Dividend

5.1 Amount

  • HRL has a Yearly Dividend Yield of 4.71%, which is a nice return.
  • HRL's Dividend Yield is rather good when compared to the industry average which is at 2.22. HRL pays more dividend than 84.09% 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 4.71%

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
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

  • 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%
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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Find the best dividend stocksShow peers with best dividend

HORMEL FOODS CORP

NYSE:HRL (2/27/2026, 8:08:53 PM)

After market: 25.6 0 (0%)

25.6

+0.78 (+3.14%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners91.37%
Inst Owner Change1.17%
Ins Owners0.15%
Ins Owner Change0.07%
Market Cap14.08B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.23 (10.27%)
Short Float %6.81%
Short Ratio4.05
Dividend
Industry RankSector Rank
Dividend Yield 4.71%
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP132.41%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-12
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)-0.8%
PT rev (3m)-0.45%
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%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 18.82
Fwd PE 16.12
P/S 1.16
P/FCF 26.36
P/OCF 16.66
P/B 1.78
P/tB 10.59
EV/EBITDA 13.23
EPS(TTM)1.36
EY5.31%
EPS(NY)1.59
Fwd EY6.2%
FCF(TTM)0.97
FCFY3.79%
OCF(TTM)1.54
OCFY6%
SpS22.01
BVpS14.36
TBVpS2.42
PEG (NY)2.35
PEG (5Y)N/A
Graham Number20.96
Profitability
Industry RankSector 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 RankSector 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 3.65
F-Score5
WACC7.49%
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)-10.53%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-2.86%
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%1.29%
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 Year35.89%
EBIT Next 3Y12.32%
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%.