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Hormel Foods (HRL) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Hormel Foods
NYSE•Consumer Defensive•Packaged Foods
$20.57-0.27(-0.01%)Market closed
Market Cap
$11.43B
P/E
33.4x
P/S
0.9x
P/B
1.5x

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.

C

How this company scores

AverageMetricSide Score: 56/100

Strongest: Cash & Earnings Quality (24/25); weakest: Profitability (4/25).

Profitability4/25
Growth10/25
Balance Sheet & Red Flags18/25
Cash & Earnings Quality24/25
Strengths
Rising free cash flowLow leverageCash-backed earningsImproving leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 33.4x5y range 21.2x – 33.4x
P/E 33.4x · above its 20-quarter median

Currently above its 20-quarter median.

P/S · 0.9x5y range 0.9x – 2.3x
P/S 0.9x · below its 20-quarter median

Currently below its 20-quarter median.

P/B · 1.5x5y range 1.5x – 3.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 42.8% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume
Market Cap $11.43B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$12.15B
1%
Q. Revenue
$2.96B
3Q
TTM EBITDA
$845.61M
2Q
TTM Op. Income
$573.89M
2Q
Q. Op. Income
$110.90M
2Q
TTM Net Income
$342.71M
2Q
Q. Net Income
$59.57M
2Q
EPS
$0.11
2Q
Shares Out.
$550.67M
2Q
$12.15B in TTM revenue grew 0.7% YoY, reaching $2.96B last quarter. TTM EBITDA of $845.61M and TTM operating income of $573.89M show growth is flowing through to the bottom line. TTM net income of $342.71M means revenue is converting into profit. Over the past year, TTM revenue is up 1% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
15.9%
1%
EBITDA Margin
6.0%
2Q
Op. Margin
3.7%
2Q
Net Margin
2.0%
2Q
Op. margin of 3.7% is down 4.2% YoY — costs are rising relative to revenue. Net margin at 2.0% and gross margin of 15.9% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
33.4x
56%
P/S Ratio
0.9x
2Q
P/B Ratio
1.5x
2Q
At 33.4x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.9x and P/B of 1.5x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Over the past year, P/E is up 56% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$13.29B
2%
Cash
$839.64M
40%
Long-Term Debt
$2.35B
2Q
Book Value
$7.84B
3%
D/E Ratio
0.3
15%
Debt/EBITDA
13.2
42%
With $13.29B in assets and $2.35B in long-term debt, D/E is 0.3and book value is $7.84B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 15% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$240.60M
54%
TTM Free Cash Flow
$780.87M
3Q
FCF Margin
6.4%
3Q
FCF / Net Income
2.3
4Q
TTM FCF of $780.87M on $240.60M in operating cash flow. The FCF / Net Income ratio of 2.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.

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· below its 20-quarter median

Currently below its 20-quarter median.