HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRL - US4404521001 - Common Stock
24.095 USD
-0.03 (-0.1%)
HRL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. HRL has only an average score on both its financial health and profitability. HRL has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally HRL also has an excellent dividend rating. This makes HRL very considerable 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.
In the past 5 years HRL has always been profitable.
HRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HRL's Return On Assets of 3.57% is fine compared to the rest of the industry. HRL outperforms 63.22% of its industry peers.
With a Return On Equity value of 6.05%, HRL perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
HRL has a better Return On Invested Capital (5.99%) than 66.67% of its industry peers.
HRL had an Average Return On Invested Capital over the past 3 years of 6.47%. This is significantly below the industry average of 28.50%.
| 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 67.82% of its industry peers.
HRL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.94%, HRL is doing good in the industry, outperforming 72.41% of the companies in the same industry.
HRL's Operating Margin has declined in the last couple of years.
The Gross Margin of HRL (15.70%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HRL has declined.
| 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.
The number of shares outstanding for HRL has been increased compared to 1 year ago.
Compared to 5 years ago, HRL has more shares outstanding
The debt/assets ratio for HRL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.56 indicates that HRL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.56, HRL is doing good in the industry, outperforming 78.16% of the companies in the same industry.
The Debt to FCF ratio of HRL is 5.35, which is a neutral value as it means it would take HRL, 5.35 years of fcf income to pay off all of its debts.
HRL has a better Debt to FCF ratio (5.35) than 80.46% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
The Debt to Equity ratio of HRL (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.79
WACC7.59%
2.3 Liquidity
A Current Ratio of 2.47 indicates that HRL has no problem at all paying its short term obligations.
The Current ratio of HRL (2.47) is better than 72.41% of its industry peers.
A Quick Ratio of 1.20 indicates that HRL should not have too much problems paying 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 68.97% 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%.
HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.88% yearly.
The Revenue has been growing slightly by 1.55% in the past year.
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, HRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.05% on average per year.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y7.09%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
EPS Next 5Y17.05%
Revenue Next Year2.09%
Revenue Next 2Y2.42%
Revenue Next 3Y1.51%
Revenue Next 5Y3.65%
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
Based on the Price/Earnings ratio of 17.59, the valuation of HRL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as HRL.
Compared to an average S&P500 Price/Earnings ratio of 26.61, HRL is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.42, which 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 66.67% of the companies listed in the same industry.
HRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.42 |
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 63.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 12.57 |
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)2.48
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, HRL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.36, HRL pays a better dividend. On top of this HRL pays more dividend than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
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, but earnings are growing more, so the dividend growth is sustainable.
DP132.41%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
NYSE:HRL (12/23/2025, 3:59:57 PM)
24.095
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners91.41%
Inst Owner Change2.09%
Ins Owners0.16%
Ins Owner Change0.06%
Market Cap13.25B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts68
Price Target28.61 (18.74%)
Short Float %5.88%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP132.41%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-4.29%
PT rev (3m)-4.29%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-8.44%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-18.73%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.42 | ||
| P/S | 1.09 | ||
| P/FCF | 24.8 | ||
| P/OCF | 15.68 | ||
| P/B | 1.68 | ||
| P/tB | 9.97 | ||
| EV/EBITDA | 12.57 |
EPS(TTM)1.37
EY5.69%
EPS(NY)1.47
Fwd EY6.09%
FCF(TTM)0.97
FCFY4.03%
OCF(TTM)1.54
OCFY6.38%
SpS22.01
BVpS14.37
TBVpS2.42
PEG (NY)2.48
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
WACC7.59%
ROIC/WACC0.79
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 Y7.09%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
EPS Next 5Y17.05%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
Revenue Next Year2.09%
Revenue Next 2Y2.42%
Revenue Next 3Y1.51%
Revenue Next 5Y3.65%
EBIT growth 1Y-5.53%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year33.83%
EBIT Next 3Y10.79%
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 ChartMill fundamental rating of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HRL.
What is the valuation status of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a valuation rating of 4 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Fairly Valued.
How profitable is HORMEL FOODS CORP (HRL) stock?
HORMEL FOODS CORP (HRL) has a profitability rating of 5 / 10.
Can you provide the financial health for HRL stock?
The financial health rating of HORMEL FOODS CORP (HRL) is 6 / 10.
Is the dividend of HORMEL FOODS CORP sustainable?
The dividend rating of HORMEL FOODS CORP (HRL) is 8 / 10 and the dividend payout ratio is 132.41%.