Hormel Foods (HRL) AI Stock Analysis

• Market Cap: $12.45B
• Dividend Yield: 5.12%
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.10
• Revenue Growth: 0.65%
• EPS Growth: -3.76%
• Country: US
• Employees: 20,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.35
• Shares Outstanding: 549,998,400
• 10 Day Avg. Volume: 4,685,091
• 30 Day Avg. Volume: 5,033,991
• PEG Ratio: 15.08
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 16.57
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 9.32
• Enterprise Value/Ebitda: 14.06
• 1Y Price Target: $27.17
• Price Target Upside: 20.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $12.46B

• Rating: 63 Neutral
• Price Target: $27.00 ▲(19.26% Upside)

Hormel Foods' overall stock score is driven by stable financial performance and a fair valuation with a strong dividend yield. However, technical indicators suggest bearish momentum, and the earnings call indicates ongoing profitability challenges due to commodity cost pressures. The company's strategic initiatives offer potential for future growth, but near-term risks remain.

Positive Factors

Revenue Growth

Consistent revenue growth across multiple quarters indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Partnership

The partnership with Forward Consumer Partners enhances Hormel's product portfolio and market reach, potentially driving future growth and innovation.

Market Expansion

Strong performance in China reflects successful international expansion, diversifying revenue streams and reducing reliance on domestic markets.

Negative Factors

Commodity Cost Pressures

Rising commodity costs can erode profit margins, posing a challenge to maintaining profitability and requiring strategic cost management.

Profitability Challenges

Lagging profitability despite revenue growth indicates operational inefficiencies, which could hinder long-term financial health if not addressed.

Leadership Changes

Leadership changes, especially in key financial roles, can create uncertainty and disrupt strategic continuity, impacting long-term planning.

Hormel Foods Business Overview & Revenue Model

Company Description

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chilies, shelf-stable microwaveable meals, hashes, stews, tortillas, salsas, tortilla chips, and others. The company also engages in the processing, marketing, and sale of branded and unbranded pork, beef, poultry, and turkey products, as well as offers nutritional food products and supplements, desserts and drink mixes, and industrial gelatin products. It sells its products primarily under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler's, Columbus, Gatherings, Herdez, Wholly, Columbus, Planters, NUT-rition, Planters Cheez Balls, Corn Nuts, etc. brand names 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.

How the Company Makes Money

Hormel Foods generates revenue through multiple key streams, primarily from the sale of its branded food products across various categories. The company's revenue model is supported by a strong presence in both retail and foodservice channels, allowing it to reach a wide consumer base. Key revenue streams include sales from refrigerated foods such as meats and deli products, grocery products like canned goods and condiments, and international sales that tap into global markets. Additionally, Hormel has built significant partnerships with major retailers and distributors, enhancing its market reach. The company's focus on innovation, including the introduction of new products and health-conscious offerings, also contributes to its earnings by attracting diverse consumer preferences and adapting to market trends.

Hormel Foods Financial Statement Overview

Summary

Hormel Foods demonstrates stable financial performance with consistent revenue growth and strong operational margins. However, challenges in profitability and cash flow generation, along with a slight decline in net profit margin, indicate areas for improvement. The company maintains a solid balance sheet with improved leverage and a strong equity position.

Income Statement

Hormel Foods shows a stable revenue growth with a slight increase in the TTM period. The gross profit margin has seen a minor decline, indicating some pressure on cost management. Net profit margin has also decreased slightly, reflecting challenges in maintaining profitability. However, the company maintains a healthy EBIT and EBITDA margin, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. Return on equity has decreased slightly, suggesting a need for enhanced profitability. The equity ratio remains strong, reflecting a solid financial foundation.

Cash Flow

Hormel Foods experienced a decline in free cash flow growth, which could impact future investments. The operating cash flow to net income ratio has decreased, indicating potential challenges in cash generation. However, the free cash flow to net income ratio remains healthy, suggesting efficient cash management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.06B	11.92B	12.11B	12.46B	11.39B	9.61B
Gross Profit	1.97B	2.02B	2.00B	2.16B	1.93B	1.83B
EBITDA	1.30B	1.37B	1.34B	1.58B	1.38B	1.34B
Net Income	754.53M	805.04M	793.57M	999.99M	908.84M	908.08M
Balance Sheet
Total Assets	13.50B	13.43B	13.45B	13.31B	12.70B	9.91B
Cash, Cash Equivalents and Short-Term Investments	630.67M	766.62M	753.20M	998.26M	634.69M	1.73B
Total Debt	2.86B	2.86B	3.31B	3.30B	3.32B	1.30B
Total Liabilities	5.40B	5.43B	5.71B	5.77B	5.72B	3.48B
Stockholders Equity	8.08B	7.99B	7.73B	7.54B	6.97B	6.43B
Cash Flow
Free Cash Flow	627.74M	1.01B	777.64M	857.28M	771.73M	760.52M
Operating Cash Flow	930.97M	1.27B	1.05B	1.13B	1.00B	1.13B
Investing Cash Flow	-265.00M	-236.91M	-689.54M	-258.04M	-3.63B	-656.32M
Financing Cash Flow	-606.16M	-1.03B	-600.06M	-486.68M	1.52B	566.17M

Hormel Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRL, the sentiment is Neutral. The current price of 22.64 is above the 20-day moving average (MA) of 22.61, below the 50-day MA of 23.60, and below the 200-day MA of 27.51, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 83.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRL.

Hormel Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKC	73 Outperform	$17.53B	22.61	13.92%	2.76%	1.64%	-1.83%
PPC	72 Outperform	$8.91B	7.27	31.76%	―	1.81%	24.67%
JBS	69 Neutral	$13.99B	8.72	24.20%	0.02%	―	119.48%
CPB	67 Neutral	$9.32B	15.59	15.64%	4.99%	6.40%	6.17%
HRL	63 Neutral	$12.45B	16.51	9.46%	5.12%	0.65%	-3.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	49 Neutral	$11.64B	―	-21.32%	4.00%	2.54%	-293.39%

Hormel Foods Corporate Events

Hormel Foods Announces CFO Departure and Interim Appointment

On October 29, 2025, Hormel Foods announced the departure of Jacinth Smiley as Executive Vice President and Chief Financial Officer, effective October 26, 2025, with Paul Kuehneman appointed as the interim CFO. The company also provided a fourth-quarter update, highlighting strong top-line results driven by sustained demand across its retail, foodservice, and international businesses, despite challenges like inflation and avian influenza. Hormel expects net sales growth toward the top end of its guidance range but anticipates adjusted earnings per share to be slightly below expectations due to these challenges.

The most recent analyst rating on (HRL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Hormel Foods stock, see the HRL Stock Forecast page.

Hormel Foods Earnings Call: Growth Amid Challenges

Hormel Foods Corp’s recent earnings call painted a picture of robust growth tempered by significant challenges. The company reported strong top-line growth across its segments, with a particularly thriving market in China. However, the positive sentiment was dampened by the pressures of commodity cost inflation and lagging profitability. Despite these hurdles, Hormel expressed confidence in its strategic initiatives and future growth prospects, although near-term profitability pressures remain a concern.

Hormel Foods Reports Strong Sales Amid Cost Challenges

Hormel Foods Corporation, a global branded food company based in Austin, Minnesota, is known for its diverse range of products including SPAM, Jennie-O, and Planters, serving markets in over 80 countries worldwide. The company recently announced its third-quarter fiscal 2025 results, highlighting strong top-line growth despite challenges in profitability. Hormel Foods reported net sales of $3.03 billion, marking a 6% increase in organic net sales. However, the company faced a decline in earnings due to rising commodity input costs, which impacted its operating income and profit margins. Despite these challenges, Hormel Foods continues to focus on strategic priorities such as expanding its retail and foodservice segments, enhancing its global presence, and executing its Transform and Modernize initiative to improve operational efficiency. Looking ahead, Hormel Foods remains optimistic about its ability to sustain net sales growth and is taking measures to address ongoing cost pressures, with expectations for profit recovery extending into the next fiscal year.