# Hormel Foods Corporation (HRL) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Defensive / Food & Staples Retailing. Price $21.54, market value $11.9 billion.

## Valuation
- **P/E (trailing): 34.7×** (5-yr avg 21.8×, 3-yr avg 21.7×). Hormel Foods Corporation trades at 34.7× trailing earnings, well above its own five-year average of 21.8×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 13.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 16.6×**. Enterprise value is 16.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.6%** (5-yr avg 4.7%). Free cash flow equals 6.6% of the market value, above its five-year average of 4.7%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.9%**. The inverse of the P/E: 2.9% of the price is earned each year.

## Profitability
- **Gross margin: 15.7%**. Hormel Foods Corporation keeps 15.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.7%**. 4.7% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 4.0%**. 4.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.1%**. 6.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 4.5%**. Return on all capital, debt included, is 4.5%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.6%**. Each dollar of assets produces 2.6% of profit.

## Growth
- **Revenue growth (1 yr): 1.6%** (3-yr -1.0%/yr, 5-yr 4.7%/yr). Revenue grew 1.6% over the last year, against 4.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -40.8%** (3-yr -21.8%/yr, 5-yr -12.1%/yr). Earnings per share fell 40.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -14.5%/yr**. Free cash flow has compounded at -14.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.36**. Debt is 0.36 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 2.6×**. It would take 2.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.43%** ($1.17 per share, trailing). Hormel Foods Corporation yields 5.43%, an income-level yield.
- **Payout ratio: 132%** (82% of free cash flow). The dividend exceeds earnings (132% payout), though free cash flow still covers it.
- **Consecutive years of increases: 24**. 24 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.5%/yr** (1-yr 2.5%). The dividend has grown 4.5% a year over five years.

## Analyst view
- **Analyst consensus: hold** (8 analysts). 8 analysts cover Hormel Foods Corporation; the consensus is hold, with an average price target of $26.13 (+21% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -10.2%** (YTD -5.5%, 3-mo -7.7%). The shares are down 10.2% over twelve months including dividends.
- **From 52-week high: -19.0%** (9.3% above the low). Trading 19% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 29**. An RSI of 29 is oversold; bounces are common, but oversold can stay oversold in a real decline.
- **Beta (1 yr): -0.10** (volatility 29%). Beta of -0.10 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HRL · Page: https://foliofundamentals.com/stocks/hrl

Not investment advice.