Hormel Foods Corporation

HRL · Consumer Defensive · Packaged Foods

Large CapCash Generator
$24.16
-0.70%

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The com…

What to know about HRL

Hormel Foods Corporation is a large Consumer Defensive company with a mixed financial profile. It scores well on valuation and risk, but size is worth keeping an eye on.

Should you consider HRL?

Based on 31 financial metrics and sector comparison. Not financial advice.

  1. Hormel Foods Corporation is a large-cap Consumer Defensive company with a mixed overall financial profile — it ranks near the bottom of Consumer Defensive stocks (31 of 35).

  2. Profit margins are thin compared to most S&P 500 peers — the company keeps less of each dollar it earns than the average. Watch for signs of margin improvement.

  3. Valuation is in the middle of the pack — neither obviously cheap nor stretched.

  4. Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.

  5. There is a small dividend (0.05%), but income-focused investors will likely find better yields elsewhere in the market.

  6. Volatility is close to the S&P 500 average — typical market swings, nothing unusual.

  7. Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.

  8. There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Consumer Defensive sector.

At a glance

Price $24.16
Market size 13.3B
Annual dividend 0.05%
Strongest metric Beta (1-Year) 0.34

How it scores

We look at 31 different financial metrics and group them into categories. Here's how HRL compares to the other S&P 500 stocks.

Valuation
Good
Risk
Good
Health
Average
Dividends
Average
Cash Flow
Average
Sentiment
Below average
Profitability
Below average
Growth
Below average
Size
Below average
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide

Valuation

Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.

Metric Value vs S&P 500
P/E Ratio (Trailing) 28.42 Average
Forward P/E 15.48 Above avg
PEG Ratio 1.84 Average
Price to Sales 1.09 Top 25%
Price to Book 1.67 Top 25%
EV/EBITDA 10.58 Top 25%
Earnings Yield 3.52% Average

Profitability

How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.

Metric Value vs S&P 500
Gross Margin 15.78% Below avg
Operating Margin 11.06% Below avg
Net Profit Margin 3.82% Below avg
Return on Equity 5.83% Below avg
Return on Invested Capital 4.58% Average

Growth

How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.

Metric Value vs S&P 500
Revenue Growth (YoY) -2.90% Below avg
Revenue Growth (3Y CAGR) -0.95% Below avg
EPS Growth (YoY) -5.10% Below avg
Free Cash Flow Growth -47.11% Below avg

Health

Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.

Metric Value vs S&P 500
Current Ratio 1.94 Top 25%
Debt to Equity 4.24 Below avg
Interest Coverage 9.50 Above avg
Altman Z-Score 3.51 Above avg

Dividends

Does the company pay shareholders, and is that payment growing and sustainable?

Metric Value vs S&P 500
Dividend Yield 4.75% Top 25%
Payout Ratio 137.06% Below avg
Dividend Growth (5Y) -9.77% Average

Cash Flow

Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.

Metric Value vs S&P 500
Free Cash Flow Yield 5.21% Above avg
OCF to Sales 8.25% Below avg

Risk

How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.

Metric Value vs S&P 500
Beta (1-Year) 0.34 Top 25%
Volatility (30-Day) 40.65% Average

Sentiment

What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.

Metric Value vs S&P 500
Short % of Float 8.61% Below avg
Avg. Analyst Rating 2.60 Below avg
Target Upside % 9.69% Average

Size

How large is the company by market value? Size affects stability, growth potential, and index inclusion.

Metric Value vs S&P 500
Market Capitalization 13.3B Below avg

How does HRL compare to…?

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