HRL Stock Analysis: Hormel Foods | NYSE
Packaged Foods | NYSE, USA | Market Cap: 13.086m USD | 12M Return: -7.6% | US4404521001 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 101M
EPS Trend: -92.0%
Qual. Beats: 0
Rev. Trend: 35.4%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Hormel Foods Corporation (NYSE: HRL) is a U.S.-based packaged foods company that develops, processes, and distributes meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three reporting segments: Retail, Foodservice, and International. The companys product range spans perishable items such as fresh meats, bacon, sausages, hams, and refrigerated meal solutions, as well as shelf-stable offerings including canned luncheon meats, nut butters, chili, and salsas.
Hormel sells its products under a large portfolio of owned brands, including SPAM, SKIPPY, PLANTERS, JENNIE-O, JUSTINS, HERDEZ, and CHI-CHIS, among others, using a mix of sales personnel, independent brokers, and distributors. Founded in 1891 and headquartered in Austin, Minnesota, the company was previously known as Geo. A. Hormel & Company before adopting its current name in January 1995. Within the Consumer Staples sector, the companys business model combines branded packaged food production with multi-channel distribution across retail, foodservice, and international markets, which is typical of large-scale packaged food operators seeking to balance revenue diversification with brand-driven pricing power.
- Pork and turkey commodity costs pressure gross margins
- Planters brand integration drives retail segment revenue growth
- Foodservice volumes recover with rising restaurant traffic
| Net Income: 342.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.22 > 1.0 |
| NWC/Revenue: 13.60% < 20% (prev 16.39%; Δ -2.79% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.09b > Net Income 342.6m |
| Net Debt (1.99b) to EBITDA (872.4m): 2.28 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (551.1m) vs 12m ago 0.12% < -2% |
| Gross Margin: 15.68% > 18% (prev 16.32%; Δ -0.64% > 0.5%) |
| Asset Turnover: 90.69% > 50% (prev 89.34%; Δ 1.34% > 0%) |
| Interest Coverage Ratio: 7.62 > 6 (EBIT TTM 600.7m / Interest Expense TTM 78.8m) |
| A: 0.12 (Total Current Assets 3.53b - Total Current Liabilities 1.87b) / Total Assets 13.3b |
| B: 0.56 (Retained Earnings 7.43b / Total Assets 13.3b) |
| C: 0.04 (EBIT TTM 600.7m / Avg Total Assets 13.4b) |
| D: 1.44 (Book Value of Equity 7.84b / Total Liabilities 5.43b) |
| Altman-Z'' = 4.46 = AA |
| DSRI: 0.89 (Receivables 733.5m/814.9m, Revenue 12.1b/12.1b) |
| GMI: 1.04 (GM 16.32% / 15.68%) |
| AQI: 0.97 (AQ_t 0.57 / AQ_t-1 0.59) |
| SGI: 1.01 (Revenue 12.1b / 12.1b) |
| TATA: -0.06 (NI 342.6m - CFO 1.09b) / TA 13.3b) |
| Beneish M = -3.10 (Cap -4..+1) = AA |
As of September 03, 2026, the stock is trading at USD 21.99 with a total of 5,549,621 shares traded. Over the past week, the price has changed by -7.53%, over one month by -12.84%, over three months by -4.70% and over the past year by -7.55%.
Current recommended Stop Loss: 21.10 (which is 4% or 1.4 ATR below the current price).
Hormel Foods has received a consensus analysts rating of 3.40. Therefore, it is recommended to hold HRL.
- StrongBuy: 1
- Buy: 2
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 27.3 | 23.9% |
P/E Trailing = 25.0353
P/E Forward = 15.2905
P/S = 1.0688
P/B = 1.6414
P/EG = 1.6681
Revenue TTM = 12.1b USD
EBIT TTM = 600.7m USD
EBITDA TTM = 872.4m USD
Long Term Debt = 2.85b USD (from longTermDebt, last fiscal year)
Short Term Debt = 505.6m USD (from shortTermDebt, last quarter)
Debt = 2.86b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.99b USD (calculated: Debt 2.86b - CCE 868.4m)
Enterprise Value = 15.1b USD (13.1b + Debt 2.86b - CCE 868.4m)
Interest Coverage Ratio = 7.62 (Ebit TTM 600.7m / Interest Expense TTM 78.8m)
EV/FCF = 19.30x (Enterprise Value 15.1b / FCF TTM 780.9m)
FCF Yield = 5.18% (FCF TTM 780.9m / Enterprise Value 15.1b)
FCF Margin = 6.43% (FCF TTM 780.9m / Revenue TTM 12.1b)
Net Margin = 2.82% (Net Income TTM 342.6m / Revenue TTM 12.1b)
Gross Margin = 15.68% ((Revenue TTM 12.1b - Cost of Revenue TTM 10.2b) / Revenue TTM)
Gross Margin QoQ = 15.92% (prev 17.44%)
Tobins Q-Ratio = 1.13 (Enterprise Value 15.1b / Total Assets 13.3b)
Interest Expense / Debt = 2.76% (Interest Expense 78.8m / Debt 2.86b)
Taxrate = 34.38% (179.4m / 521.9m)
NOPAT = 394.2m (EBIT 600.7m * (1 - 34.38%))
Current Ratio = 1.88 (Total Current Assets 3.53b / Total Current Liabilities 1.87b)
Debt / Equity = 0.36 (Debt 2.86b / totalStockholderEquity, last quarter 7.84b)
Debt / EBITDA = 2.28 (Net Debt 1.99b / EBITDA 872.4m)
Debt / FCF = 2.54 (Net Debt 1.99b / FCF TTM 780.9m)
Total Stockholder Equity = 7.91b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.56% (Net Income 342.6m / Total Assets 13.3b)
RoE = 4.33% (Net Income TTM 342.6m / Total Stockholder Equity 7.91b)
RoCE = 5.58% (EBIT 600.7m / Capital Employed (Equity 7.91b + L.T.Debt 2.85b))
RoIC = 3.48% (NOPAT 394.2m / Invested Capital 11.3b)
WACC = 4.98% (E(13.1b)/V(15.9b) * Re(5.67%) + D(2.86b)/V(15.9b) * Rd(2.76%) * (1-Tc(0.34)))
Discount Rate = 5.67% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.65 | Cagr: 0.19%
[DCF] Terminal Value 77.97% ; FCFF base≈719.6m ; Y1≈824.9m ; Y5≈1.21b
[DCF] Fair Price = 29.59 (EV 18.3b - Net Debt 1.99b = Equity 16.3b / Shares 550.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -91.99 | EPS CAGR: -6.50% | SUE: 0.31 | # QB: 0
Revenue Correlation: 35.35 | Revenue CAGR: 0.34% | SUE: -2.03 | # QB: -1
EPS current Year (2026-10-31): EPS=1.50 | Chg30d=+0.19% | Revisions=+0% | GrowthEPS=+9.2% | GrowthRev=+1.1%
EPS next Year (2027-10-31): EPS=1.56 | Chg30d=+0.11% | Revisions=-17% | GrowthEPS=+4.4% | GrowthRev=+1.1%
[Analyst] Revisions Ratio: -10% (up=3, down=4)