HORMEL FOODS CORP (HRL) Fundamental Analysis & Valuation

NYSE:HRL • US4404521001

Current stock price

23.085 USD
+0.02 (+0.07%)
Last:

This HRL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. HRL Profitability Analysis

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.
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

  • HRL has a better Return On Assets (3.68%) than 67.82% of its industry peers.
  • HRL has a Return On Equity of 6.17%. This is in the better half of the industry: HRL outperforms 63.22% of its industry peers.
  • The Return On Invested Capital of HRL (5.88%) is better than 65.52% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HRL is in line with the industry average of 7.23%.
Industry RankSector Rank
ROA 3.68%
ROE 6.17%
ROIC 5.88%
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's Profit Margin of 4.03% is fine compared to the rest of the industry. HRL outperforms 67.82% of its industry peers.
  • In the last couple of years the Profit Margin of HRL has declined.
  • The Operating Margin of HRL (7.79%) is better than 66.67% of its industry peers.
  • HRL's Operating Margin has declined in the last couple of years.
  • HRL's Gross Margin of 15.61% is in line compared to the rest of the industry. HRL outperforms 44.83% of its industry peers.
  • In the last couple of years the Gross Margin of HRL has declined.
Industry RankSector Rank
OM 7.79%
PM (TTM) 4.03%
GM 15.61%
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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5

2. HRL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRL is destroying value.
  • The number of shares outstanding for HRL has been increased compared to 1 year ago.
  • HRL has more shares outstanding than it did 5 years ago.
  • 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 3.55 indicates that HRL is not in any danger for bankruptcy at the moment.
  • HRL has a better Altman-Z score (3.55) than 72.41% of its industry peers.
  • HRL has a debt to FCF ratio of 4.95. This is a neutral value as HRL would need 4.95 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.95, HRL is in the better half of the industry, outperforming 73.56% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.36, HRL is in line with its industry, outperforming 56.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 4.95
Altman-Z 3.55
ROIC/WACC0.76
WACC7.77%
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 2.66 indicates that HRL has no problem at all paying its short term obligations.
  • HRL has a better Current ratio (2.66) than 75.86% of its industry peers.
  • A Quick Ratio of 1.37 indicates that HRL should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.37, HRL is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.66
Quick Ratio 1.37
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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3

3. HRL Growth Analysis

3.1 Past

  • HRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.53%.
  • 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 1.95%.
  • The Revenue has been growing slightly by 4.73% on average over the past years.
EPS 1Y (TTM)-10.53%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.29%

3.2 Future

  • Based on estimates for the next years, HRL will show a small growth in Earnings Per Share. The EPS will grow by 5.70% on average per year.
  • 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 Y9.04%
EPS Next 2Y8.05%
EPS Next 3Y7.39%
EPS Next 5Y5.7%
Revenue Next Year1.35%
Revenue Next 2Y1.59%
Revenue Next 3Y1.86%
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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4

4. HRL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 16.97 indicates a correct valuation of HRL.
  • Based on the Price/Earnings ratio, HRL is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
  • HRL is valuated rather cheaply when we compare the Price/Earnings ratio to 24.89, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 14.43 indicates a correct valuation of HRL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 71.26% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, HRL is valued a bit cheaper.
Industry RankSector Rank
PE 16.97
Fwd PE 14.43
HRL Price Earnings VS Forward Price EarningsHRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
  • Based on the Price/Free Cash Flow ratio, HRL is valued a bit cheaper than 62.07% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22
EV/EBITDA 12.06
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 an expensive valuation of the company.
PEG (NY)1.88
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y7.39%

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7

5. HRL Dividend Analysis

5.1 Amount

  • HRL has a Yearly Dividend Yield of 5.12%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.45, 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 1.89, HRL pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.12%

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
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

  • 130.30% 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.
DP130.3%
EPS Next 2Y8.05%
EPS Next 3Y7.39%
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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HRL Fundamentals: All Metrics, Ratios and Statistics

HORMEL FOODS CORP

NYSE:HRL (3/30/2026, 9:31:06 AM)

23.085

+0.02 (+0.07%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners92%
Inst Owner Change1.32%
Ins Owners0.17%
Ins Owner Change0.06%
Market Cap12.70B
Revenue(TTM)12.14B
Net Income(TTM)489.42M
Analysts70.67
Price Target28.35 (22.81%)
Short Float %7.06%
Short Ratio4.31
Dividend
Industry RankSector Rank
Dividend Yield 5.12%
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP130.3%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-12
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)4.83%
Max EPS beat(2)4.95%
EPS beat(4)3
Avg EPS beat(4)-1.13%
Min EPS beat(4)-15.34%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)-0.9%
EPS beat(12)7
Avg EPS beat(12)0.34%
EPS beat(16)9
Avg EPS beat(16)-0.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-2.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)3
Avg Revenue beat(12)-1.66%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)0.41%
PT rev (3m)-1.3%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 16.97
Fwd PE 14.43
P/S 1.05
P/FCF 22
P/OCF 14.35
P/B 1.6
P/tB 8.69
EV/EBITDA 12.06
EPS(TTM)1.36
EY5.89%
EPS(NY)1.6
Fwd EY6.93%
FCF(TTM)1.05
FCFY4.55%
OCF(TTM)1.61
OCFY6.97%
SpS22.07
BVpS14.43
TBVpS2.66
PEG (NY)1.88
PEG (5Y)N/A
Graham Number21.01
Profitability
Industry RankSector Rank
ROA 3.68%
ROE 6.17%
ROCE 7.86%
ROIC 5.88%
ROICexc 6.36%
ROICexgc 15.19%
OM 7.79%
PM (TTM) 4.03%
GM 15.61%
FCFM 4.76%
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 Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 4.95
Debt/EBITDA 2.35
Cap/Depr 116.07%
Cap/Sales 2.53%
Interest Coverage 250
Cash Conversion 73.06%
Profit Quality 118%
Current Ratio 2.66
Quick Ratio 1.37
Altman-Z 3.55
F-Score5
WACC7.77%
ROIC/WACC0.76
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 Y9.04%
EPS Next 2Y8.05%
EPS Next 3Y7.39%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.29%
Revenue Next Year1.35%
Revenue Next 2Y1.59%
Revenue Next 3Y1.86%
Revenue Next 5Y1.92%
EBIT growth 1Y-4.05%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year35.89%
EBIT Next 3Y13.12%
EBIT Next 5Y14.86%
FCF growth 1Y-40.33%
FCF growth 3Y-14.54%
FCF growth 5Y-6.82%
OCF growth 1Y-29.08%
OCF growth 3Y-9.36%
OCF growth 5Y-5.61%

HORMEL FOODS CORP / HRL Fundamental Analysis 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 9.04% 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 130.3%.