Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and became a branded food company. The firm sells its wares through multiple channels, including US retail (61.6% of fiscal 2025 sales), US foodservice (32.6%), and international (5.9%).
It is a $10.6B consumer staples company. Revenue grew 0.7% over the last year, it keeps 3¢ of every dollar of sales as profit, and its net debt equals ~2.7 years of free cash flow. It trades at 30.8× earnings — near the highest of its own history.
- Website
- hormelfoods.com
- Location
- Austin, MN
- Employees
- 20 000
- Sector
- Consumer Defensive
- Founded
- 1891
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong quality; Growth, Profitability and Health lag behind.
Valuation57
- P/E vs own history92th pct · 0/25
- FCF yield7.4% · 20/25
- P/S0.9x · 25/25
- EV/EBITDA15.1x · 12/25
Growth31
- Revenue CAGR1.5% · 6/25
- Net income CAGR-14.8% · 0/25
- EPS CAGR ~5Y-12.2% · 0/25
- Fwd implied growth136.6% · 25/25
Profitability21
- ROIC4.8% · 5/25
- ROE4.3% · 5/25
- Net margin2.8% · 6/25
- Operating margin4.6% · 5/25
Health48
- Altman Zn/a · 0/25
- Current ratio1.88 · 18/25
- Interest coverage5.2x · 18/25
- Net cash / debtD/A 16% · 12/25
Quality90
- Piotroski F5/9 · 15/25
- Beneish M-2.57 · 25/25
- FCF conversion228% · 25/25
- Margin stabilityσ 2.5% · 25/25
Moat56
- ROIC >12% years5/10 yrs · 13/25
- Median gross margin18.2% · 6/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 4.0% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2026AcquisitionHormel Foods announced an agreement to acquire Brakebush Brothers, a family-owned value-added…
- FY2021FinancialRevenue crossed $10B$11.4B for the year
- FY2019FinancialBecame debt-freecash now exceeds total debt
- FY2018FinancialBest year on record$1.01B net income
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$9.52B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2015ProductThe Hormel Health Labs division of Hormel Foods launched its Hormel Vital Cuisine line of packaged ready to…
- 2009ProductHormel and Herdez del Fuerte created the joint venture MegaMex Foods to market and distribute Mexican food…
- 2007AcquisitionCorporate Responsibility Report, Hormel Foods stated that all suppliers are expected to comply with…
- 1993MilestoneThe company changed its name to Hormel Foods Corporation in 1993 and uses the Hormel brand on many of its products
- 1986AcquisitionHormel Foods acquired Jennie-O Foods and also began an exclusive licensing arrangement to produce Chi-Chi's…
- 1984ProductHormel introduced the Frank 'n Stuff brand of stuffed hot dogs
- 1936ProductHormel Chili and Spam were introduced in 1936 and 1937 respectively
- 1926ProductThe company introduced Hormel Flavor-Sealed Ham, America's first canned ham
- 1891FoundedHormel Foods Corporation, doing business as Hormel Foods or simply Hormel, is an American multinational food…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Interest covered 5.2× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+0.7% YoY
- Profitable — makes more than it spends$343M TTM
- Profit growing — earnings are higher than last year-21.8% YoY
- Generates cash — cash left after running and investing$781M TTM
- Debt under control — could handle its obligations~2.7y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$10.6B market cap
- Not printing shares — share count not ballooning — you keep your slice+0.7% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 36/100
- Pays a dividend — returns cash to shareholdersyield 6.07%
- Valuation not extreme — price not wildly above earningsP/E 30.8
Peer comparisonHormel Foods Corporation vs 6 largest consumer defensive peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| HRL this company | $10.6B | 30.8 | +0.7% | 2.8% | Mixed |
| WMT Walmart Inc. | $882.9B | 40.8 | +6.2% | 3.0% | Strained |
| COST Costco Wholesale Corp | $419.2B | 45.5 | +10.1% | 3.0% | Mixed |
| KO Coca-Cola Company | $379.3B | 26.5 | +6.5% | 28.6% | Mixed |
| PG Procter & Gamble Company | $351.2B | 21.9 | +3.3% | 18.4% | Solid |
| PM Philip Morris International Inc. | $313.6B | 28.8 | +8.9% | 25.6% | Strained |
| PEP PepsiCo, Inc. | $171.8B | 16.5 | +6.4% | 11.1% | Strained |
Head-to-head: HRL vs WMT · HRL vs COST · HRL vs KO
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/HRL
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Deeper analysis of HRL on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $19.27 · market cap $10.6B.