HORMEL FOODS CORP (HRL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:HRL • US4404521001

24.335 USD
-0.07 (-0.31%)
Last: Feb 10, 2026, 10:31 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, HRL scores 4 out of 10 in our fundamental rating. HRL was compared to 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

  • 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.
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 64.77% of the companies in the same industry.
  • HRL's Return On Equity of 6.05% is fine compared to the rest of the industry. HRL outperforms 61.36% of 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 65.91% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for HRL is significantly below the industry average of 27.75%.
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

  • With a decent Profit Margin value of 3.95%, HRL is doing good in the industry, outperforming 70.45% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HRL has declined.
  • HRL has a Operating Margin of 7.94%. This is in the better half of the industry: HRL outperforms 71.59% of its industry peers.
  • HRL's Operating Margin has declined in the last couple of years.
  • HRL has a Gross Margin of 15.70%. This is comparable to the rest of the industry: HRL outperforms 43.18% of its industry peers.
  • In the last couple of years the Gross Margin of HRL has declined.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRL 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

  • An Altman-Z score of 3.57 indicates that HRL is not in any danger for bankruptcy at the moment.
  • HRL's Altman-Z score of 3.57 is fine compared to the rest of the industry. HRL outperforms 75.00% 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.
  • With a decent Debt to FCF ratio value of 5.35, HRL is doing good in the industry, outperforming 76.14% of the companies in the same industry.
  • HRL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of HRL (0.36) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 5.35
Altman-Z 3.57
ROIC/WACC0.78
WACC7.65%
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.
  • HRL's Current ratio of 2.47 is fine compared to the rest of the industry. HRL outperforms 70.45% of its industry peers.
  • HRL has a Quick Ratio of 1.20. This is a normal value and indicates that HRL is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of HRL (1.20) is better than 68.18% of its industry peers.
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

  • 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.
  • The Revenue has been growing slightly by 1.55% in the past year.
  • 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

  • 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.
  • 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.76, the valuation of HRL can be described as rather expensive.
  • 61.36% of the companies in the same industry are more expensive than HRL, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 28.06, HRL is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 16.45, HRL is valued correctly.
  • Based on the Price/Forward Earnings ratio, HRL is valued a bit cheaper than 65.91% of the companies in the same industry.
  • HRL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.76
Fwd PE 16.45
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
  • HRL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 25.05
EV/EBITDA 12.7
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)2.22
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

  • With a Yearly Dividend Yield of 4.66%, HRL is a good candidate for dividend investing.
  • 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.
  • Compared to an average S&P500 Dividend Yield of 1.80, HRL pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.66%

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

  • 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 (2/10/2026, 10:31:55 AM)

24.335

-0.07 (-0.31%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)12-04
Earnings (Next)02-26
Inst Owners91.37%
Inst Owner Change-1.65%
Ins Owners0.15%
Ins Owner Change0.07%
Market Cap13.38B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (16.95%)
Short Float %6.79%
Short Ratio3.87
Dividend
Industry RankSector Rank
Dividend Yield 4.66%
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)-0.92%
PT rev (3m)-4.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.25%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 17.76
Fwd PE 16.45
P/S 1.11
P/FCF 25.05
P/OCF 15.83
P/B 1.69
P/tB 10.06
EV/EBITDA 12.7
EPS(TTM)1.37
EY5.63%
EPS(NY)1.48
Fwd EY6.08%
FCF(TTM)0.97
FCFY3.99%
OCF(TTM)1.54
OCFY6.32%
SpS22.01
BVpS14.37
TBVpS2.42
PEG (NY)2.22
PEG (5Y)N/A
Graham Number21.04
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 3.57
F-Score5
WACC7.65%
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 2Y7.65%
EPS Next 3Y7.25%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
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 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%.