HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRL - US4404521001 - Common Stock
24.22 USD
-0.5 (-2.02%)
24.21 USD
-0.01 (-0.04%)
HRL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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. HRL also has an excellent dividend rating. With these ratings, HRL could be worth investigating further 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.
- HRL had positive earnings in each of the past 5 years.
- HRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HRL (3.57%) is better than 63.22% of its industry peers.
- HRL has a Return On Equity of 6.05%. This is comparable to the rest of the industry: HRL outperforms 59.77% of 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 27.79%.
| 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
- With a decent Profit Margin value of 3.95%, HRL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- With a Gross Margin value of 15.70%, HRL perfoms like the industry average, outperforming 43.68% of the companies in the same industry.
- HRL's Gross Margin has declined in the last couple of years.
| 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.
- HRL has a worse debt/assets ratio than last year.
2.2 Solvency
- HRL has an Altman-Z score of 3.56. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- HRL's Altman-Z score of 3.56 is fine compared to the rest of the industry. HRL outperforms 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.
- With a Debt to Equity ratio value of 0.36, HRL perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.78
WACC7.66%
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.
- 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.
- HRL has a better Quick ratio (1.20) than 68.97% 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.
- Measured over the past years, HRL shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.88% on average per year.
- 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
- 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 Y8.13%
EPS Next 2Y7.79%
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.68, the valuation of HRL can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as HRL.
- HRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 16.35, HRL is valued correctly.
- Based on the Price/Forward Earnings ratio, HRL is valued a bit cheaper than 65.52% of the companies in the same industry.
- HRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
- HRL's Enterprise Value to EBITDA ratio is in line with the industry average.
- HRL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.93 | ||
| EV/EBITDA | 12.61 |
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)2.17
PEG (5Y)N/A
EPS Next 2Y7.79%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
- HRL has a Yearly Dividend Yield of 4.73%, which is a nice return.
- HRL's Dividend Yield is rather good when compared to the industry average which is at 2.28. HRL pays more dividend than 83.91% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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 2Y7.79%
EPS Next 3Y7.32%
24.22
-0.5 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)02-25 2026-02-25/bmo
Inst Owners91.37%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change0.06%
Market Cap13.32B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (17.51%)
Short Float %6.72%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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)-0.52%
PT rev (3m)-4.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)0.97%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 16.35 | ||
| P/S | 1.1 | ||
| P/FCF | 24.93 | ||
| P/OCF | 15.76 | ||
| P/B | 1.69 | ||
| P/tB | 10.02 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)1.37
EY5.66%
EPS(NY)1.48
Fwd EY6.12%
FCF(TTM)0.97
FCFY4.01%
OCF(TTM)1.54
OCFY6.35%
SpS22.01
BVpS14.37
TBVpS2.42
PEG (NY)2.17
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 | 3.56 |
F-Score5
WACC7.66%
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 Y8.13%
EPS Next 2Y7.79%
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 Year36.18%
EBIT Next 3Y11.82%
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 8.13% 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%.