HORMEL FOODS CORP (HRL) Fundamental Analysis & Valuation

NYSE:HRL • US4404521001

Current stock price

22.14 USD
-0.23 (-1.03%)
At close:
22.35 USD
+0.21 (+0.95%)
After Hours:

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

  • In the past year HRL was profitable.
  • HRL had a positive operating cash flow in the past year.
  • In the past 5 years HRL has always been profitable.
  • In the past 5 years HRL always reported a positive cash flow from operatings.
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's Return On Assets of 3.68% is fine compared to the rest of the industry. HRL outperforms 68.97% of its industry peers.
  • HRL has a Return On Equity of 6.17%. This is in the better half of the industry: HRL outperforms 64.37% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.88%, HRL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HRL is in line with the industry average of 7.16%.
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

  • Looking at the Profit Margin, with a value of 4.03%, HRL is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HRL has declined.
  • With a decent Operating Margin value of 7.79%, HRL is doing good in the industry, outperforming 67.82% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HRL has declined.
  • HRL has a Gross Margin (15.61%) which is in line with its industry peers.
  • HRL's Gross Margin has declined in the last couple of years.
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

  • HRL 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, HRL has more shares outstanding
  • HRL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, HRL has a worse debt to assets ratio.
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

  • HRL has an Altman-Z score of 3.49. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
  • HRL has a Altman-Z score of 3.49. This is in the better half of the industry: HRL outperforms 75.86% of its industry peers.
  • The Debt to FCF ratio of HRL is 4.95, which is a neutral value as it means it would take HRL, 4.95 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of HRL (4.95) is better than 74.71% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.36
Debt/FCF 4.95
Altman-Z 3.49
ROIC/WACC0.77
WACC7.69%
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.
  • Looking at the Current ratio, with a value of 2.66, HRL is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
  • HRL has a Quick Ratio of 1.37. 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 (1.37) is better than 71.26% of its industry peers.
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%.
  • Measured over the past years, HRL shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
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.
  • The Revenue is expected to grow by 1.92% on average over the next years.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • HRL is valuated correctly with a Price/Earnings ratio of 16.28.
  • Compared to the rest of the industry, the Price/Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 62.07% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of HRL to the average of the S&P500 Index (25.23), we can say HRL is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 13.84, which indicates a correct valuation of HRL.
  • Based on the Price/Forward Earnings ratio, HRL is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, HRL is valued a bit cheaper.
Industry RankSector Rank
PE 16.28
Fwd PE 13.84
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRL is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, HRL is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.1
EV/EBITDA 11.64
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)1.8
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 5.23%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.49, 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 5.23%

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

  • 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 (3/20/2026, 8:04:00 PM)

After market: 22.35 +0.21 (+0.95%)

22.14

-0.23 (-1.03%)

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 Cap12.18B
Revenue(TTM)12.14B
Net Income(TTM)489.42M
Analysts70.67
Price Target28.23 (27.51%)
Short Float %7.06%
Short Ratio4.31
Dividend
Industry RankSector Rank
Dividend Yield 5.23%
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)-0.8%
PT rev (3m)-1.32%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0.97%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE 16.28
Fwd PE 13.84
P/S 1
P/FCF 21.1
P/OCF 13.76
P/B 1.53
P/tB 8.33
EV/EBITDA 11.64
EPS(TTM)1.36
EY6.14%
EPS(NY)1.6
Fwd EY7.22%
FCF(TTM)1.05
FCFY4.74%
OCF(TTM)1.61
OCFY7.27%
SpS22.07
BVpS14.43
TBVpS2.66
PEG (NY)1.8
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 3.49
F-Score5
WACC7.69%
ROIC/WACC0.77
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%.