(HRL) Hormel Foods - NYSE
Sector: Consumer Defensive | Industry: Packaged Foods | Exchange: NYSE (USA) | Market Cap: 12.998m USD | Total Return: -19.3% in 12m
Avg Turnover: 105M
EPS Trend: -95.9%
Qual. Beats: 1
Rev. Trend: 2.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Hormel Foods Corporation (NYSE: HRL) is a global food processor specializing in a diverse portfolio of branded meat and nut products. The company operates through three primary segments: Retail, Foodservice, and International, distributing both perishable and shelf-stable goods. Its brand portfolio includes established names such as SPAM, Skippy, Planters, and Jennie-O, which are sold through direct sales teams, brokers, and distributors.
The company operates within the consumer staples sector, a category historically characterized by steady demand regardless of economic cycles. Hormel utilizes a value-added business model, transforming raw agricultural commodities into branded, high-margin consumer packaged goods to mitigate the volatility of protein commodity prices. This strategy allows the firm to maintain a presence across multiple grocery aisles and professional kitchens.
For a detailed breakdown of the companys historical performance and valuation metrics, you may wish to consult ValueRay. Founded in 1891 and headquartered in Austin, Minnesota, Hormel remains a major constituent of the Packaged Foods & Meats industry.
- Volatile hog and turkey input costs impact segment operating margins
- High interest rates and inflation pressure consumer demand for premium brands
- Foodservice volume growth offsets retail segment weakness in processed meats
- Strategic integration of Planters brand drives snack category market share
- Avian influenza outbreaks disrupt Jennie-O supply chain and poultry profitability
| Net Income: 466.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.01 > 1.0 |
| NWC/Revenue: 13.84% < 20% (prev 16.39%; Δ -2.55% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.01b > Net Income 466.8m |
| Net Debt (2.00b) to EBITDA (1.03b): 1.93 < 3 |
| Current Ratio: 1.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (550.8m) vs 12m ago 0.04% < -2% |
| Gross Margin: 15.67% > 18% (prev 16.51%; Δ -0.85% > 0.5%) |
| Asset Turnover: 91.30% > 50% (prev 88.84%; Δ 2.46% > 0%) |
| Interest Coverage Ratio: 9.68 > 6 (EBIT TTM 763.1m / Interest Expense TTM 78.9m) |
| A: 0.13 (Total Current Assets 3.49b - Total Current Liabilities 1.80b) / Total Assets 13.3b |
| B: 0.56 (Retained Earnings 7.53b / Total Assets 13.3b) |
| C: 0.06 (EBIT TTM 763.1m / Avg Total Assets 13.4b) |
| D: 1.48 (Book Value of Equity 7.95b / Total Liabilities 5.38b) |
| Altman-Z'' = 4.61 = AA |
| DSRI: 1.01 (Receivables 818.8m/794.5m, Revenue 12.2b/11.9b) |
| GMI: 1.05 (GM 16.51% / 15.67%) |
| AQI: 0.97 (AQ_t 0.58 / AQ_t-1 0.59) |
| SGI: 1.02 (Revenue 12.2b / 11.9b) |
| TATA: -0.04 (NI 466.8m - CFO 1.01b) / TA 13.3b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of June 10, 2026, the stock is trading at USD 23.98 with a total of 3,756,079 shares traded.
Over the past week, the price has changed by +2.70%,
over one month by +18.95%,
over three months by +1.85% and
over the past year by -19.28%.
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 | 26.5 | 10.5% |
P/E Trailing = 27.7882
P/E Forward = 16.2866
P/S = 1.0638
P/B = 1.6352
P/EG = 1.7649
Revenue TTM = 12.2b USD
EBIT TTM = 763.1m USD
EBITDA TTM = 1.03b USD
Long Term Debt = 2.35b USD (from longTermDebt, last quarter)
Short Term Debt = 505.3m USD (from shortTermDebt, last quarter)
Debt = 2.86b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.00b USD (calculated: Debt 2.86b - CCE 859.9m)
Enterprise Value = 15.0b USD (13.0b + Debt 2.86b - CCE 859.9m)
Interest Coverage Ratio = 9.68 (Ebit TTM 763.1m / Interest Expense TTM 78.9m)
EV/FCF = 21.64x (Enterprise Value 15.0b / FCF TTM 692.9m)
FCF Yield = 4.62% (FCF TTM 692.9m / Enterprise Value 15.0b)
FCF Margin = 5.67% (FCF TTM 692.9m / Revenue TTM 12.2b)
Net Margin = 3.82% (Net Income TTM 466.8m / Revenue TTM 12.2b)
Gross Margin = 15.67% ((Revenue TTM 12.2b - Cost of Revenue TTM 10.3b) / Revenue TTM)
Gross Margin QoQ = 17.24% (prev 15.51%)
Tobins Q-Ratio = 1.12 (Enterprise Value 15.0b / Total Assets 13.3b)
Interest Expense / Debt = 2.76% (Interest Expense 78.9m / Debt 2.86b)
Taxrate = 28.79% (188.6m / 655.3m)
NOPAT = 543.4m (EBIT 763.1m * (1 - 28.79%))
Current Ratio = 1.94 (Total Current Assets 3.49b / Total Current Liabilities 1.80b)
Debt / Equity = 0.36 (Debt 2.86b / totalStockholderEquity, last quarter 7.95b)
Debt / EBITDA = 1.93 (Net Debt 2.00b / EBITDA 1.03b)
Debt / FCF = 2.88 (Net Debt 2.00b / FCF TTM 692.9m)
Total Stockholder Equity = 7.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.49% (Net Income 466.8m / Total Assets 13.3b)
RoE = 5.86% (Net Income TTM 466.8m / Total Stockholder Equity 7.97b)
RoCE = 7.39% (EBIT 763.1m / Capital Employed (Equity 7.97b + L.T.Debt 2.35b))
RoIC = 4.75% (NOPAT 543.4m / Invested Capital 11.4b)
WACC = 5.37% (E(13.0b)/V(15.9b) * Re(6.12%) + D(2.86b)/V(15.9b) * Rd(2.76%) * (1-Tc(0.29)))
Discount Rate = 6.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 0.23%
[DCF] Terminal Value 75.39% ; FCFF base≈694.1m ; Y1≈694.6m ; Y5≈730.8m
[DCF] Fair Price = 17.04 (EV 11.4b - Net Debt 2.00b = Equity 9.38b / Shares 550.3m; r=8.35% [WACC [floored]]; 5y FCF grow -0.40% → 2.50% )
EPS Correlation: -95.85 | EPS CAGR: -7.51% | SUE: 1.80 | # QB: 1
Revenue Correlation: 2.80 | Revenue CAGR: 0.03% | SUE: 0.22 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.35 | Chg30d=-4.84% | Revisions=-60% | Analysts=8
EPS current Year (2026-10-31): EPS=1.49 | Chg30d=+1.26% | Revisions=+50% | GrowthEPS=+8.6% | GrowthRev=+1.6%
EPS next Year (2027-10-31): EPS=1.56 | Chg30d=+0.36% | Revisions=-11% | GrowthEPS=+4.9% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: -60%