HORMEL FOODS CORP (1HRL.MI) Fundamental Analysis & Valuation

BIT:1HRL • US4404521001

Current stock price

20.76 EUR
+0.81 (+4.03%)
Last:

This 1HRL.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. 1HRL.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1HRL was profitable.
  • In the past year 1HRL had a positive cash flow from operations.
  • 1HRL had positive earnings in each of the past 5 years.
  • In the past 5 years 1HRL always reported a positive cash flow from operatings.
1HRL.MI Yearly Net Income VS EBIT VS OCF VS FCF1HRL.MI 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

  • 1HRL's Return On Assets of 3.57% is in line compared to the rest of the industry. 1HRL outperforms 55.22% of its industry peers.
  • With a Return On Equity value of 6.05%, 1HRL perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
  • 1HRL's Return On Invested Capital of 5.99% is in line compared to the rest of the industry. 1HRL outperforms 56.72% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1HRL is in line with the industry average of 7.00%.
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%
1HRL.MI Yearly ROA, ROE, ROIC1HRL.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • 1HRL has a Profit Margin (3.95%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of 1HRL has declined.
  • The Operating Margin of 1HRL (7.94%) is comparable to the rest of the industry.
  • 1HRL's Operating Margin has declined in the last couple of years.
  • The Gross Margin of 1HRL (15.70%) is worse than 82.09% of its industry peers.
  • In the last couple of years the Gross Margin of 1HRL 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%
1HRL.MI Yearly Profit, Operating, Gross Margins1HRL.MI 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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6

2. 1HRL.MI Health Analysis

2.1 Basic Checks

  • 1HRL 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, 1HRL has more shares outstanding
  • 1HRL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1HRL has a worse debt to assets ratio.
1HRL.MI Yearly Shares Outstanding1HRL.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
1HRL.MI Yearly Total Debt VS Total Assets1HRL.MI 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 3.58 indicates that 1HRL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.58, 1HRL is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
  • The Debt to FCF ratio of 1HRL is 5.35, which is a neutral value as it means it would take 1HRL, 5.35 years of fcf income to pay off all of its debts.
  • 1HRL's Debt to FCF ratio of 5.35 is fine compared to the rest of the industry. 1HRL outperforms 68.66% of its industry peers.
  • A Debt/Equity ratio of 0.36 indicates that 1HRL is not too dependend on debt financing.
  • The Debt to Equity ratio of 1HRL (0.36) is better than 71.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 5.35
Altman-Z 3.58
ROIC/WACC0.8
WACC7.48%
1HRL.MI Yearly LT Debt VS Equity VS FCF1HRL.MI 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 1HRL has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.47, 1HRL belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
  • 1HRL has a Quick Ratio of 1.20. This is a normal value and indicates that 1HRL is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.20, 1HRL is doing good in the industry, outperforming 71.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.47
Quick Ratio 1.2
1HRL.MI Yearly Current Assets VS Current Liabilites1HRL.MI 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. 1HRL.MI Growth Analysis

3.1 Past

  • The earnings per share for 1HRL have decreased strongly by -13.29% in the last year.
  • 1HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.88% yearly.
  • 1HRL 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

  • Based on estimates for the next years, 1HRL 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, 1HRL 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

  • 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.
1HRL.MI Yearly Revenue VS Estimates1HRL.MI 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
1HRL.MI Yearly EPS VS Estimates1HRL.MI 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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3

4. 1HRL.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 17.90, 1HRL is valued on the expensive side.
  • 1HRL's Price/Earnings is on the same level as the industry average.
  • 1HRL is valuated rather cheaply when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 16.55 indicates a correct valuation of 1HRL.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1HRL.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, 1HRL is valued a bit cheaper.
Industry RankSector Rank
PE 17.9
Fwd PE 16.55
1HRL.MI Price Earnings VS Forward Price Earnings1HRL.MI 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 1HRL.
  • 1HRL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 25.2
EV/EBITDA 12.73
1HRL.MI Per share data1HRL.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)2.24
PEG (5Y)N/A
EPS Next 2Y7.65%
EPS Next 3Y7.25%

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6

5. 1HRL.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.66%, 1HRL is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.59, 1HRL pays a better dividend. On top of this 1HRL pays more dividend than 82.09% of the companies listed in the same industry.
  • 1HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.66%

5.2 History

  • The dividend of 1HRL has a limited annual growth rate of 4.90%.
Dividend Growth(5Y)4.9%
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

  • 1HRL pays out 132.41% of its income as dividend. This is not a sustainable payout ratio.
  • 1HRL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP132.41%
EPS Next 2Y7.65%
EPS Next 3Y7.25%
1HRL.MI Yearly Income VS Free CF VS Dividend1HRL.MI 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
1HRL.MI Dividend Payout.1HRL.MI Dividend Payout, showing the Payout Ratio.1HRL.MI Dividend Payout.PayoutRetained Earnings

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1HRL.MI Fundamentals: All Metrics, Ratios and Statistics

HORMEL FOODS CORP

BIT:1HRL (1/28/2026, 7:00:00 PM)

20.76

+0.81 (+4.03%)

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 ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap11.42B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts70.67
Price Target24.06 (15.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.66%
Yearly Dividend0.98
Dividend Growth(5Y)4.9%
DP132.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)-0.35%
PT rev (3m)-6.81%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)0.84%
EPS NY rev (3m)-5.52%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE 17.9
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 12.73
EPS(TTM)1.16
EY5.59%
EPS(NY)1.25
Fwd EY6.04%
FCF(TTM)0.82
FCFY3.97%
OCF(TTM)1.3
OCFY6.28%
SpS18.66
BVpS12.18
TBVpS2.05
PEG (NY)2.24
PEG (5Y)N/A
Graham Number17.83
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 3.58
F-Score5
WACC7.48%
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 5YN/A
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 / 1HRL.MI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of HORMEL FOODS CORP (1HRL.MI) stock?

ChartMill assigns a fundamental rating of 4 / 10 to 1HRL.MI.


Can you provide the valuation status for HORMEL FOODS CORP?

ChartMill assigns a valuation rating of 3 / 10 to HORMEL FOODS CORP (1HRL.MI). This can be considered as Overvalued.


How profitable is HORMEL FOODS CORP (1HRL.MI) stock?

HORMEL FOODS CORP (1HRL.MI) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for 1HRL stock?

The Price/Earnings (PE) ratio for HORMEL FOODS CORP (1HRL.MI) is 17.9 and the Price/Book (PB) ratio is 1.7.


Can you provide the financial health for 1HRL stock?

The financial health rating of HORMEL FOODS CORP (1HRL.MI) is 6 / 10.