HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
NYSE:HRL • US4404521001
24.48 USD
+1.04 (+4.44%)
At close: Feb 18, 2026
24.11 USD
-0.37 (-1.51%)
After Hours: 2/18/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to HRL. HRL was compared to 87 industry peers in the Food Products industry. HRL has an average financial health and profitability rating. HRL has a valuation in line with the averages, but on the other hand it scores bad on growth. HRL also has an excellent dividend rating. These ratings would make HRL suitable for dividend investing!
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.
- Each year in the past 5 years HRL has been profitable.
- Each year in the past 5 years HRL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.57%, HRL is in the better half of the industry, outperforming 66.67% 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 64.37% of the companies in the same industry.
- The Return On Invested Capital of HRL (5.99%) is better than 67.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HRL is significantly below the industry average of 28.08%.
| 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 70.11% of its industry peers.
- 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.
- 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 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRL 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.
- The debt/assets ratio for HRL is higher compared to a year ago.
2.2 Solvency
- HRL has an Altman-Z score of 3.52. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
- HRL's Altman-Z score of 3.52 is fine compared to the rest of the industry. HRL outperforms 72.41% 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.
- Looking at the Debt to FCF ratio, with a value of 5.35, HRL is in the better half of the industry, outperforming 75.86% 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 | 3.52 |
ROIC/WACC0.8
WACC7.51%
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 70.11% 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.
- Looking at the Quick ratio, with a value of 1.20, HRL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 |
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.
- HRL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
- HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
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.
- HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- HRL is valuated rather expensively with a Price/Earnings ratio of 17.87.
- HRL's Price/Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 63.22% of the companies in the same industry.
- HRL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
- HRL is valuated correctly with a Price/Forward Earnings ratio of 16.55.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 68.97% of the companies listed in the same industry.
- HRL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
- HRL's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, HRL is valued a bit cheaper than 60.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.2 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y7.65%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.99%, HRL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.27, HRL pays a better dividend. On top of this HRL pays more dividend than 83.91% of the companies listed in the same industry.
- HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
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 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
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 2Y7.65%
EPS Next 3Y7.25%
24.48
+1.04 (+4.44%)
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-2.08%
Ins Owners0.15%
Ins Owner Change0.07%
Market Cap13.47B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target28.46 (16.26%)
Short Float %6.81%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
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)-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)-0.1%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 16.55 | ||
| P/S | 1.11 | ||
| P/FCF | 25.2 | ||
| P/OCF | 15.93 | ||
| P/B | 1.7 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)1.37
EY5.6%
EPS(NY)1.48
Fwd EY6.04%
FCF(TTM)0.97
FCFY3.97%
OCF(TTM)1.54
OCFY6.28%
SpS22.01
BVpS14.36
TBVpS2.42
PEG (NY)2.23
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 | 3.52 |
F-Score5
WACC7.51%
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)-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 5 / 10 to HRL.
What is the valuation status for HRL stock?
ChartMill assigns a valuation rating of 4 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Fairly Valued.
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%.