HRL Stock Analysis: Hormel Foods | NYSE
Packaged Foods | NYSE, USA | Market Cap: 11.145m USD | 12M Return: -14.3% | US4404521001 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 97.3M
EPS Trend: -92.0%
Qual. Beats: 0
Rev. Trend: 35.4%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 is a major U.S.-based food manufacturer that develops, processes, and distributes a diverse portfolio of meat, nut, and food products. The company operates through three reporting segments: Retail, Foodservice, and International, serving foodservice operators, convenience stores, and other commercial customers across the United States and abroad. As a large-cap constituent of the Consumer Staples sector (specifically the Packaged Foods & Meats sub-industry), Hormel benefits from the relatively defensive characteristics typical of food producers, including steady demand and brand-driven pricing power.
The companys product range spans both perishable and shelf-stable categories. Perishable offerings include fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamole, while shelf-stable products cover canned luncheon meats, nut butters, snack nuts, chili, microwaveable meals, stews, tortillas, salsas, and tortilla chips. Hormel sells these products under a broad portfolio of well-known brands, including SPAM, SKIPPY, PLANTERS, JENNIE-O, HERDEZ, JUSTINS, and WHOLLY, among roughly 50 others, through a mix of internal sales personnel, independent brokers, and third-party distributors.
Founded in 1891 and headquartered in Austin, Minnesota, the company was originally known as Geo. A. Hormel & Company before adopting its current name in January 1995. Hormel has been publicly traded since its 1990 IPO on the NYSE under the ticker HRL. Its combination of branded shelf-stable products and refrigerated protein lines provides exposure to multiple distribution channels and consumption occasions, a common structural feature among large packaged-food peers.
- Jennie-O turkey margins pressured by oversupply and avian flu
- Planters acquisition expands branded snack portfolio
- Foodservice segment rebounds as restaurant traffic recovers
| 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 October 08, 2026, the stock is trading at USD 19.55 with a total of 6,064,955 shares traded. Over the past week, the price has changed by -1.96%, over one month by -7.83%, over three months by -19.90% and over the past year by -14.28%.
Current recommended Stop Loss: 18.90 (which is 3.3% 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 | 25.9 | 32.7% |
P/E Trailing = 32.6613
P/E Forward = 12.8535
P/S = 0.9175
P/B = 1.3977
P/EG = 1.4015
Revenue TTM = 12.1b USD
EBIT TTM = 600.7m USD
EBITDA TTM = 872.4m USD
Long Term Debt = 2.35b USD (from longTermDebt, last quarter)
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 = 13.1b USD (11.1b + Debt 2.86b - CCE 868.4m)
Interest Coverage Ratio = 7.62 (Ebit TTM 600.7m / Interest Expense TTM 78.8m)
EV/FCF = 16.82x (Enterprise Value 13.1b / FCF TTM 780.9m)
FCF Yield = 5.95% (FCF TTM 780.9m / Enterprise Value 13.1b)
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 = 0.99 (Enterprise Value 13.1b / 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 = 5.86% (EBIT 600.7m / Capital Employed (Equity 7.91b + L.T.Debt 2.35b))
RoIC = 3.48% (NOPAT 394.2m / Invested Capital 11.3b)
WACC = 4.85% (E(11.1b)/V(14.0b) * Re(5.63%) + D(2.86b)/V(14.0b) * Rd(2.76%) * (1-Tc(0.34)))
Discount Rate = 5.63% (= 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 550.4m; 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 Quarter (2027-01-31): EPS=0.38 | Chg30d=+0.11% | Revisions=+0% | Analysts=6
EPS current Year (2026-10-31): EPS=1.45 | Chg30d=-2.47% | Revisions=-50% | GrowthEPS=+5.9% | GrowthRev=+0.4%
EPS next Year (2027-10-31): EPS=1.57 | Chg30d=+1.16% | Revisions=-22% | GrowthEPS=+8.3% | GrowthRev=+2.7%
[Analyst] Revisions Ratio: -32% (up=6, down=13)