(HRL) Hormel Foods - Overview
Sector: Consumer Defensive | Industry: Packaged Foods | Exchange: NYSE (USA) | Market Cap: 11.495m USD | Total Return: -20.5% in 12m
Avg Turnover: 104M
EPS Trend: -96.8%
Qual. Beats: 0
Rev. Trend: -44.2%
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: 489.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -2.31 > 1.0 |
| NWC/Revenue: 17.42% < 20% (prev 16.24%; Δ 1.18% < -1%) |
| CFO/TA 0.07 > 3% & CFO 885.3m > Net Income 489.4m |
| Net Debt (1.99b) to EBITDA (1.02b): 1.94 < 3 |
| Current Ratio: 2.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (550.7m) vs 12m ago 0.15% < -2% |
| Gross Margin: 15.53% > 18% (prev 16.69%; Δ -1.16% > 0.5%) |
| Asset Turnover: 90.90% > 50% (prev 88.88%; Δ 2.03% > 0%) |
| Interest Coverage Ratio: 9.68 > 6 (EBIT TTM 758.0m / Interest Expense TTM 78.3m) |
| A: 0.16 (Total Current Assets 3.39b - Total Current Liabilities 1.27b) / Total Assets 13.3b |
| B: 0.57 (Retained Earnings 7.54b / Total Assets 13.3b) |
| C: 0.06 (EBIT TTM 758.0m / Avg Total Assets 13.4b) |
| D: 1.48 (Book Value of Equity 7.94b / Total Liabilities 5.36b) |
| Altman-Z'' = 4.82 = AA |
| DSRI: 0.90 (Receivables 755.1m/818.6m, Revenue 12.1b/11.9b) |
| GMI: 1.07 (GM 16.69% / 15.53%) |
| AQI: 0.97 (AQ_t 0.58 / AQ_t-1 0.59) |
| SGI: 1.02 (Revenue 12.1b / 11.9b) |
| TATA: -0.03 (NI 489.4m - CFO 885.3m) / TA 13.3b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of June 03, 2026, the stock is trading at USD 23.35 with a total of 3,094,172 shares traded.
Over the past week, the price has changed by +11.78%,
over one month by +13.02%,
over three months by -4.59% and
over the past year by -20.54%.
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 | 25.1 | 7.6% |
P/E Trailing = 23.4719
P/E Forward = 14.4509
P/S = 0.9497
P/B = 1.4529
P/EG = 1.4103
Revenue TTM = 12.1b USD
EBIT TTM = 758.0m USD
EBITDA TTM = 1.02b USD
Long Term Debt = 2.85b USD (from longTermDebt, last quarter)
Short Term Debt = 6.49m USD (from shortTermDebt, last quarter)
Debt = 2.86b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.99b USD (calculated: Debt 2.86b - CCE 867.9m)
Enterprise Value = 13.5b USD (11.5b + Debt 2.86b - CCE 867.9m)
Interest Coverage Ratio = 9.68 (Ebit TTM 758.0m / Interest Expense TTM 78.3m)
EV/FCF = 23.35x (Enterprise Value 13.5b / FCF TTM 577.5m)
FCF Yield = 4.28% (FCF TTM 577.5m / Enterprise Value 13.5b)
FCF Margin = 4.76% (FCF TTM 577.5m / Revenue TTM 12.1b)
Net Margin = 4.03% (Net Income TTM 489.4m / Revenue TTM 12.1b)
Gross Margin = 15.53% ((Revenue TTM 12.1b - Cost of Revenue TTM 10.3b) / Revenue TTM)
Gross Margin QoQ = 15.51% (prev 13.96%)
Tobins Q-Ratio = 1.01 (Enterprise Value 13.5b / Total Assets 13.3b)
Interest Expense / Debt = 2.74% (Interest Expense 78.3m / Debt 2.86b)
Taxrate = 28.05% (190.7m / 679.7m)
NOPAT = 545.3m (EBIT 758.0m * (1 - 28.05%))
Current Ratio = 2.66 (Total Current Assets 3.39b / Total Current Liabilities 1.27b)
Debt / Equity = 0.36 (Debt 2.86b / totalStockholderEquity, last quarter 7.94b)
Debt / EBITDA = 1.94 (Net Debt 1.99b / EBITDA 1.02b)
Debt / FCF = 3.44 (Net Debt 1.99b / FCF TTM 577.5m)
Total Stockholder Equity = 7.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.66% (Net Income 489.4m / Total Assets 13.3b)
RoE = 6.13% (Net Income TTM 489.4m / Total Stockholder Equity 7.99b)
RoCE = 6.99% (EBIT 758.0m / Capital Employed (Equity 7.99b + L.T.Debt 2.85b))
RoIC = 4.77% (NOPAT 545.3m / Invested Capital 11.4b)
WACC = 5.44% (E(11.5b)/V(14.4b) * Re(6.30%) + D(2.86b)/V(14.4b) * Rd(2.74%) * (1-Tc(0.28)))
Discount Rate = 6.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 0.20%
[DCF] Terminal Value 73.10% ; FCFF base≈702.7m ; Y1≈616.3m ; Y5≈497.9m
[DCF] Fair Price = 10.91 (EV 7.99b - Net Debt 1.99b = Equity 6.00b / Shares 550.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -96.85 | EPS CAGR: -7.81% | SUE: 0.54 | # QB: 0
Revenue Correlation: -44.15 | Revenue CAGR: -0.46% | SUE: -0.54 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.37 | Chg30d=-1.16% | Revisions=-33% | Analysts=7
EPS current Year (2026-10-31): EPS=1.46 | Chg30d=-0.46% | Revisions=-14% | GrowthEPS=+6.8% | GrowthRev=+1.6%
EPS next Year (2027-10-31): EPS=1.56 | Chg30d=-0.71% | Revisions=-33% | GrowthEPS=+6.7% | GrowthRev=+1.6%
[Analyst] Revisions Ratio: -33%