Stock · HRL · Consumer Defensive

Hormel Foods Corporation

United States · Large Cap · listed since 1990 · Revenue 12 mo. $12.1B

Price as of 11/06/2026

StockScorer score
0.0
of 10 0 of 11 points Low Match To the score
Price
$21.95
1 Y −8.5%
Market cap
$12B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue −1.0% a year (3 years)EBIT margin 5.9%Payout 75.5% of operating cash flow

Hormel Foods Corporation develops, processes, and distributes various meat, nut, and other food products to foodservice, convenience stores, and commercial customers in the United States and internationally.

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Hormel Foods Corporation develops, processes, and distributes various meat, nut, and other food products to foodservice, convenience stores, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International. The company provides perishable products, including fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration, as well as shelf-stable products, such as canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. It sells its products under the HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BACON 1, BLACK LABEL, BREAD READY, BURKE, CAFÉ H, CERATTI, CHI-CHI'S, COLUMBUS, COMPLEATS, CORN NUTS, CURE 81, DAN'S PRIZE, DI LUSSO, DINTY MOORE, DON MIGUEL, DOÑA MARIA, EMBASA, FAST "N EASY, FIRE BRAISED, FONTANINI, HERDEZ, HORMEL GATHERINGS, HOUSE OF TSANG, JENNIE-O, JUSTIN'S, LA VICTORIA, LAYOUT, LLOYD'S, MARY KITCHEN, MR. PEANUT, NATURAL CHOICE, NUT-RITION, OLD SMOKEHOUSE, OVEN READY, PILLOW PACK, PLANTERS, ROSA GRANDE, SADLER'S SMOKEHOUSE, SKIPPY, SPAM, SQUARE TABLE, SPECIAL RECIPE, VALLEY FRESH, and WHOLLY brands through sales personnel, independent brokers, and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.

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Summary

Hormel Foods Corporation is below the middle of the Consumer Defensive sector overall

35.5 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 9.8% FCF growth a year, more than achieved over the last 5 and 10 years.

If free cash flow stays at €479.5M (2025), it supports €5.3B. The remaining €5.4B of the market value assume it grows 9.8% a year for 10 years and not at all afterwards.

Required FCF growth per year

9.8%

no growth afterwards

Market value breakdown€10.7B market value, price as of 11/06/2026

€5.3B without growth
€5.4B priced-in growth
  • 5 yrs achieved −1.0%
  • 10 yrs achieved −0.5%
  • priced in 9.8%

Valuation against its own history

Price to operating cash flow 11.1×, below its usual range.

Middle half of 20 quarters: 14.4× to 21.6×, median 16.1×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

2 signs support the expectation, 3 speak against it.

What supports it

with respect to the priced-in expectation

  • Low capital needs capex median 2.5% of revenue (10 years)
  • Steady FCF margin at least 4.4%, range 4.6 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • Expectation above the company's own record priced in 9.8%, achieved at most −0.5%
  • Earnings declined earnings −40.6% year on year
  • Dividend above free cash flow payout 119.4% of FCF

Since the last quarter

Q2 → Q3 2026

A mixed quarter: 1 figure better, 1 worse.

  • FCF, 12 mo.$692.9M → $780.9M+12.7%better
  • EBIT margin5.8% → 4.7%−1.0 ppworse

6 more unchanged: Revenue, 12 mo., Gross margin, FCF margin, Net debt, Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability26.9below the middleEarns less than the sector: Gross margin 15.63%, sector 35.78%.
MetricStockSector medianPosition in sector
Return on equity6.05%12.35%Rank 18
Return on capital (Greenblatt)16.85%20.14%Rank 42
EBIT margin5.94%9.44%Rank 32
FCF margin4.41%6.71%Rank 33
Gross margin15.63%35.78%Rank 11
Growth21.4below the middleGrows more slowly than the sector: Earnings growth, 5 years per year −12.16%, sector 6.07%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year1.55%2.12%Rank 43
Earnings growth, 3 years per year−21.84%5.20%Rank 12
Earnings growth, 5 years per year−12.16%6.07%Rank 10
Sustainable growth (ROE × retained earnings)2.57%3.77%Rank 20
Valuation45.8around the middleValued about like the sector.
MetricStockSector medianPosition in sector
Earnings yield3.96%4.25%Rank 42
FCF yield4.46%5.05%Rank 42
EV/saleslower is better1.171.51Rank 60
EV/EBITlower is better19.6616.74Rank 40
Momentum23.9below the middleShare price doing worse than the sector: Share price, 3 months −7.14%, sector 9.00%.
MetricStockSector medianPosition in sector
Share price, 1 year−8.55%3.24%Rank 27
Share price, 6 months7.87%11.30%Rank 38
Share price, 3 months−7.14%9.00%Rank 6
Distance from 52-week high−17.20%−7.96%Rank 24
Quality36.6below the middleQuality below the sector: Price reaction to results, market-adjusted −10.71%, sector 0.22%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−0.51%−0.99%Rank 43
Change in share countlower is better0.30%−0.62%Rank 7
Dividend streak in years405Rank 97
Price reaction to results, market-adjusted−10.71%0.22%Rank 0
Balance sheet & risk58.3around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio58.99%41.95%Rank 84
Net debt/EBITDAlower is better2.141.96Rank 45
Debt to equitylower is better0.360.67Rank 73
Volatility, 1 yearlower is better28.46%25.82%Rank 31

Ten years in figures

Revenue from $9.5B (2016) to $12.1B (2025), 2.7% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt
20169.513.9%$743.6M542M−$165.1M
20179.213.9%$812.6M539M−$194.1M
20189.512.4%$861.9M544M$165.7M
20199.512.6%$666.6M545M−$422.9M
20209.611.5%$760.5M547M−$410.7M
202111.49.9%$771.7M548M$2.7B
202212.510.5%$857.3M550M$2.3B
202312.18.9%$777.6M549M$2.6B
202411.99.0%$1.0B549M$2.1B
202512.15.9%$534.3M550M$2.2B
0.0 / 10Low MatchStockScorer score0 of 11 points

0 of 7 StockScorer Score rules met · How the score is built

Hormel Foods Corporation mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 0%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Hormel Foods Corporation's score is built

Hormel Foods Corporation is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

0 of 7 rules met

0 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector mediannot met0 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Hormel Foods Corporation stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Trending Value: Value + Momentum
  • Defensive: Low Volatility
  • Undervalued Stocks: Multi-Factor Check
  • Magic Formula: Value + Quality
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Moat Quality
  • Balanced GARP
  • High-Growth / Rule of 40
  • Levermann Strategy (13 Criteria)
  • PEG Strategy (inspired by Peter Lynch)
  • StockScorer Score
  • Growth Momentum (CAN SLIM principle)

Hormel Foods Corporation key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Hormel Foods Corporation.

MetricStockSector
P/E ratio25.322.8
P/B ratio1.52.6
Return on equity (ROE)6.1%12.3%
Equity ratio59.0%42.0%
Debt-to-equity (D/E)0.360.67
Dividend yield5.3%2.6%

Similar stocks in Consumer Defensive

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
HRLHormel Foods Corporationthis page
MKCMcCormick & Company IncorporatedHigh6.4
SJMThe J. M. Smucker CompanyLow3.6
GISGeneral Mills IncMedium5.5
KHCThe Kraft Heinz Companylocked
MICC.ASThe Magnum Ice Cream Company N.V.locked

Frequently asked questions about Hormel Foods Corporation stock

How does Hormel Foods Corporation stock (HRL) score in the StockScorer model?
Hormel Foods Corporation stock reaches a StockScorer score of 0.0 out of 10, which is a low match with the rule-based strategies. 0 out of 7 flagship profile rules are met.
What is Hormel Foods Corporation's P/E ratio?
Hormel Foods Corporation's P/E ratio is 25.3. The Consumer Defensive sector median is 22.8.
What sector is Hormel Foods Corporation in?
Hormel Foods Corporation is assigned to the Consumer Defensive sector. Its rank within the sector is 35.5 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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