Hormel Foods (HRL)
Consumer Staples · $11.4B market cap · SEC CIK 0000048465
fundamentals score out of 100
Next reports on Dec 2, 2026, after the close, with analysts expecting $0.38 in earnings per share.
The case for HRL
- Pays a 3.5% dividend while you wait.
- Moves less than the market (beta 0.26).
The case against
- Earnings per share down 54.6%.
- Pricey at 33.2× earnings, against a long-run market average nearer 20×.
- Return on equity of only 4%.
- Near the bottom of its 52-week range, 24% below the high. Falling prices usually have a reason; find it first.
- Revenue was flat on the year (+0.7%).
- Net margin of 2.8% leaves very little room for error.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 59 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 33 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 32 |
| Momentumhow the price has behaved lately | 19 |
| Stabilityhow violently it moves, what it owes and what it pays you | 71 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 33.2× |
|---|---|
| Price / book | 1.83× |
| Price / sales | 0.9× |
| Revenue growth (YoY) | +0.7% |
| EPS growth (YoY) | -54.6% |
| Gross margin | 16% |
| Operating margin | 5% |
| Net margin | 3% |
| Return on equity | 4% |
| Debt / equity | 0.36× |
| Current ratio | 1.88 |
| Dividend yield | 3.45% |
| Beta | 0.26 |
| 52-week range | $19.70 – $26.60 |
| Position in that range | 9% of the way up |
| 3-month return | -15.3% |
| 1-year return | -17.6% |
Five years of financials, as filed
Pulled from Hormel Foods's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $12.1B | $11.9B | $12.1B | $12.5B | $11.4B |
| Gross profit | $1.9B | $2.0B | $2.0B | $2.2B | $1.9B |
| Operating income | $719M | $1.1B | $1.1B | $1.3B | $1.1B |
| Net income | $478M | $805M | $794M | $1000M | $909M |
| Operating cash flow | $845M | $1.3B | $1.0B | $1.1B | $1.0B |
| Capital expenditure | $311M | $256M | $270M | $279M | $232M |
| Total assets | $13.3B | $13.4B | $13.5B | $13.3B | $12.8B |
| Shareholder equity | $7.9B | $8.0B | $7.8B | $7.6B | $7.1B |
| Cash | $868M | $840M | $963M | $600M | $824M |
| Long-term debt | $2.9B | $2.9B | $2.4B | $3.3B | $3.3B |
| Free cash flow | $534M | $1.0B | $778M | $856M | $770M |
| Gross margin | 15.6% | 17.0% | 16.5% | 17.4% | 16.9% |
| Operating margin | 5.9% | 9.0% | 8.9% | 10.5% | 9.9% |
| Net margin | 4.0% | 6.8% | 6.6% | 8.0% | 8.0% |
| Diluted shares | 550M | 549M | 549M | 550M | 548M |
Share count is essentially flat over 4 years.
What Hormel Foods says it does
Development of Business Hormel Foods Corporation, a Delaware corporation, was founded by George A. Hormel in 1891 in Austin, Minnesota, as Geo. A. Hormel & Company. The Company originated as a processor of meat and food products and continues in this line of business today. The Company has expanded its product portfolio through organic growth and acquisitions to become a global branded food company with more than $12 billion in annual revenue. The Company is built on a foundation of innovation and integrity and a commitment to delivering high-quality, trusted food products across a diverse portfolio of brands and product solutions including Planters ® , SPAM ® , Jennie-O ® , Skippy ® , Applegate ® , Wholly ® , Hormel ® Black Label ® , Fontanini ® , Bacon1 ® , Hormel ® pepperoni, and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500…
Risk factors HRL lists in its 10-K
- Deterioration of economic conditions could harm the Company’s business
- The Company’s operations are subject to the risks associated with acquisitions, joint ventures, equity investments, and divestitures
- Risks and uncertainties associated with intangible assets, including any future goodwill or intangible asset impairment charges, may negatively impact the Company
- The Company is subject to the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers
- The Company may not realize the anticipated cost savings or operating profit improvements associated with strategic initiatives, including its Transform and Modernize initiative
- The Company is subject to the risk of unfavorable changes in the Company’s relationships with significant customers, suppliers, distributors, and other third parties
- The Company may be adversely impacted if the Company is affected by cybersecurity attacks or other security breaches
- A significant disruption to the Company's IT systems and the Company's failure to adequately maintain and update those systems could adversely affect the Company's operations
- Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business
- If the Company fails to achieve its projected results or otherwise fails to meet market expectations regarding its financial performance, the price and volatility of its stock could be adversely affected
- The Company’s operations are subject to food safety and other risks inherent to the food industry
- Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins
- Fluctuations in commodity prices and availability of raw materials and other inputs could harm the Company’s results of operations
- Market demand for the Company’s products may fluctuate, including due to private-label products and lower-priced alternatives