HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - NYSE:HRL - US4404521001 - Common Stock
22.525 USD
+0.38 (+1.69%)
Taking everything into account, HRL scores 5 out of 10 in our fundamental rating. HRL was compared to 86 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 it does not seem to be growing. Finally HRL also has an excellent dividend rating. These ratings would make HRL suitable 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.
HRL had positive earnings in each of the past 5 years.
Each year in the past 5 years HRL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.59%, HRL is doing good in the industry, outperforming 76.74% of the companies in the same industry.
HRL has a better Return On Equity (9.33%) than 69.77% of its industry peers.
The Return On Invested Capital of HRL (6.50%) is better than 69.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HRL is significantly below the industry average of 28.65%.
| 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
The Profit Margin of HRL (6.26%) is better than 75.58% of its industry peers.
HRL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.40%, HRL is doing good in the industry, outperforming 70.93% of the companies in the same industry.
In the last couple of years the Operating Margin of HRL has declined.
With a Gross Margin value of 16.36%, HRL perfoms like the industry average, outperforming 45.35% of the companies in the same 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) just above the Cost of Capital (WACC), HRL is creating some 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.
The debt/assets ratio for HRL has been reduced compared to a year ago.
2.2 Solvency
HRL has an Altman-Z score of 3.47. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.47, HRL is doing good in the industry, outperforming 75.58% 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.
The Debt to FCF ratio of HRL (4.55) is better than 79.07% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that HRL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, HRL perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.89
WACC7.34%
2.3 Liquidity
HRL has a Current Ratio of 2.47. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
HRL has a better Current ratio (2.47) than 74.42% of its industry peers.
A Quick Ratio of 1.12 indicates that HRL should not have too much problems paying its short term obligations.
HRL's Quick ratio of 1.12 is fine compared to the rest of the industry. HRL outperforms 66.28% 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.
The Revenue has been growing slightly by 4.65% on average over the past years.
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 3.52% on average per year.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.69% yearly.
EPS Next Y-10.4%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
EPS Next 5Y3.52%
Revenue Next Year1.78%
Revenue Next 2Y2.03%
Revenue Next 3Y2.16%
Revenue Next 5Y1.69%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.32 indicates a correct valuation of HRL.
Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 66.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, HRL is valued a bit cheaper.
HRL is valuated correctly with a Price/Forward Earnings ratio of 15.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 68.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, HRL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 15.02 |
4.2 Price Multiples
HRL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HRL is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, HRL is a good candidate for dividend investing.
The stock price of HRL dropped by -22.23% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.21, HRL pays a better dividend. On top of this HRL pays more dividend than 84.88% of the companies listed in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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.
HRL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP83.32%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
NYSE:HRL (11/11/2025, 3:10:49 PM)
22.525
+0.38 (+1.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.9%
Inst Owner Change1.23%
Ins Owners0.16%
Ins Owner Change0.04%
Market Cap12.39B
Revenue(TTM)12.06B
Net Income(TTM)754.53M
Analysts68
Price Target29.89 (32.7%)
Short Float %5.15%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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)0%
PT rev (3m)-10.93%
EPS NQ rev (1m)-17.91%
EPS NQ rev (3m)-34.57%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-13.09%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 15.02 | ||
| P/S | 1.03 | ||
| P/FCF | 19.74 | ||
| P/OCF | 13.31 | ||
| P/B | 1.53 | ||
| P/tB | 8.61 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.47
EY6.53%
EPS(NY)1.5
Fwd EY6.66%
FCF(TTM)1.14
FCFY5.07%
OCF(TTM)1.69
OCFY7.51%
SpS21.92
BVpS14.7
TBVpS2.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.05
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%
ROICexgc growth 3Y-7.22%
ROICexgc 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 | 3.47 |
F-Score5
WACC7.34%
ROIC/WACC0.89
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-10.4%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
EPS Next 5Y3.52%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
Revenue Next Year1.78%
Revenue Next 2Y2.03%
Revenue Next 3Y2.16%
Revenue Next 5Y1.69%
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%
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 83.32%.