HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - NYSE:HRL - US4404521001 - Common Stock
24.61 USD
-0.03 (-0.12%)
Taking everything into account, HRL scores 5 out of 10 in our fundamental rating. HRL was compared to 89 industry peers in the Food Products industry. Both the profitability and the financial health of HRL get a neutral evaluation. Nothing too spectacular is happening here. 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. With these ratings, HRL could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year HRL was profitable.
HRL had a positive operating cash flow in the past year.
Each year in the past 5 years HRL has been profitable.
In the past 5 years HRL always reported a positive cash flow from operatings.
1.2 Ratios
HRL's Return On Assets of 5.59% is fine compared to the rest of the industry. HRL outperforms 77.53% of its industry peers.
HRL's Return On Equity of 9.33% is fine compared to the rest of the industry. HRL outperforms 68.54% of its industry peers.
The Return On Invested Capital of HRL (6.50%) is better than 68.54% of its industry peers.
HRL had an Average Return On Invested Capital over the past 3 years of 7.49%. This is significantly below the industry average of 27.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROIC | 6.5% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
1.3 Margins
HRL has a better Profit Margin (6.26%) than 76.40% of its industry peers.
HRL's Profit Margin has declined in the last couple of years.
The Operating Margin of HRL (8.40%) is better than 70.79% of its industry peers.
HRL's Operating Margin has declined in the last couple of years.
The Gross Margin of HRL (16.36%) 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 | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% |
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRL 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.62 indicates that HRL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.62, HRL is doing good in the industry, outperforming 74.16% of the companies in the same industry.
The Debt to FCF ratio of HRL is 4.55, which is a neutral value as it means it would take HRL, 4.55 years of fcf income to pay off all of its debts.
HRL has a Debt to FCF ratio of 4.55. This is in the better half of the industry: HRL outperforms 76.40% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that HRL is not too dependend on debt financing.
HRL has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.86
WACC7.53%
2.3 Liquidity
A Current Ratio of 2.47 indicates that HRL has no problem at all paying its short term obligations.
HRL has a better Current ratio (2.47) than 75.28% of its industry peers.
HRL has a Quick Ratio of 1.12. This is a normal value and indicates that HRL is financially healthy and should not expect problems in meeting its short term obligations.
HRL's Quick ratio of 1.12 is fine compared to the rest of the industry. HRL outperforms 66.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for HRL have decreased by -6.96% in the last year.
The Earnings Per Share has been decreasing by -1.91% on average over the past years.
Looking at the last year, HRL shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
Measured over the past years, HRL shows a small growth in Revenue. The Revenue has been growing by 4.65% on average per year.
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
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 5.76% on average per year.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.22% yearly.
EPS Next Y-7.85%
EPS Next 2Y-0.57%
EPS Next 3Y2.93%
EPS Next 5Y5.76%
Revenue Next Year1.74%
Revenue Next 2Y2.16%
Revenue Next 3Y2.32%
Revenue Next 5Y2.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.74, the valuation of HRL can be described as correct.
Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 61.80% of the companies in the same industry.
HRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
The Price/Forward Earnings ratio is 15.76, which indicates a correct valuation of HRL.
69.66% of the companies in the same industry are more expensive than HRL, based on the Price/Forward Earnings ratio.
HRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
68.54% of the companies in the same industry are more expensive than HRL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.56 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.57%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
HRL has a Yearly Dividend Yield of 4.69%, which is a nice return.
HRL's Dividend Yield is rather good when compared to the industry average which is at 5.12. HRL pays more dividend than 82.02% of the companies in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
On average, the dividend of HRL grows each year by 6.53%, which is quite nice.
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)6.53%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
HRL pays out 83.32% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HRL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP83.32%
EPS Next 2Y-0.57%
EPS Next 3Y2.93%
NYSE:HRL (9/30/2025, 10:36:08 AM)
24.61
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.9%
Inst Owner Change0.51%
Ins Owners0.16%
Ins Owner Change0.03%
Market Cap13.54B
Analysts67.5
Price Target29.89 (21.45%)
Short Float %4.64%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly Dividend1.12
Dividend Growth(5Y)6.53%
DP83.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.16%
Min EPS beat(2)-15.34%
Max EPS beat(2)1.03%
EPS beat(4)1
Avg EPS beat(4)-5.94%
Min EPS beat(4)-15.34%
Max EPS beat(4)1.03%
EPS beat(8)4
Avg EPS beat(8)-0.26%
EPS beat(12)6
Avg EPS beat(12)-1.4%
EPS beat(16)8
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)-10.93%
PT rev (3m)-10.59%
EPS NQ rev (1m)-19.45%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)-10.46%
EPS NY rev (3m)-10.57%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.76 | ||
| P/S | 1.12 | ||
| P/FCF | 21.56 | ||
| P/OCF | 14.54 | ||
| P/B | 1.67 | ||
| P/tB | 9.41 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)1.47
EY5.97%
EPS(NY)1.56
Fwd EY6.35%
FCF(TTM)1.14
FCFY4.64%
OCF(TTM)1.69
OCFY6.88%
SpS21.92
BVpS14.7
TBVpS2.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROCE | 8.34% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 16.2% | ||
| OM | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% | ||
| FCFM | 5.21% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
ROICexc(3y)8.08%
ROICexc(5y)8.91%
ROICexgc(3y)21.3%
ROICexgc(5y)22.65%
ROCE(3y)9.6%
ROCE(5y)10.2%
ROICexcg growth 3Y-7.22%
ROICexcg growth 5Y-11.81%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y-13.2%
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 116.21% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.07% | ||
| Profit Quality | 83.2% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.62 |
F-Score5
WACC7.53%
ROIC/WACC0.86
Cap/Depr(3y)104.11%
Cap/Depr(5y)118.53%
Cap/Sales(3y)2.21%
Cap/Sales(5y)2.5%
Profit Quality(3y)103.03%
Profit Quality(5y)95.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
EPS Next Y-7.85%
EPS Next 2Y-0.57%
EPS Next 3Y2.93%
EPS Next 5Y5.76%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
Revenue Next Year1.74%
Revenue Next 2Y2.16%
Revenue Next 3Y2.32%
Revenue Next 5Y2.22%
EBIT growth 1Y-1.83%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.55%
EBIT Next Year15.4%
EBIT Next 3Y9.49%
EBIT Next 5Y9.03%
FCF growth 1Y-25.48%
FCF growth 3Y9.5%
FCF growth 5Y9.93%
OCF growth 1Y-15.41%
OCF growth 3Y8.13%
OCF growth 5Y6.54%