Hormel Foods (HRL) AI Stock Analysis

• Market Cap: $13.39B
• Dividend Yield: 4.77%
• Average Volume (3M): 5.41M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.12
• Revenue Growth: 1.55%
• EPS Growth: -40.81%
• Country: US
• Employees: 20,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.32
• Shares Outstanding: 549,998,400
• 10 Day Avg. Volume: 5,454,570
• 30 Day Avg. Volume: 5,414,238
• PEG Ratio: -0.61
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 22.23
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 8.25
• Enterprise Value/Ebitda: 15.37
• 1Y Price Target: $27.60
• Price Target Upside: 13.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $25.00 ▲(2.71% Upside)

Hormel Foods' overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and earnings call insights. The company's strong brand performance and strategic initiatives are positive, but challenges in profitability and cash flow efficiency, along with a high P/E ratio, weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth across all segments indicates strong brand performance and market demand, supporting long-term business stability.

Strategic Initiatives

Strategic initiatives like Transform and Modernize enhance operational efficiency and prepare the company for sustained growth and market expansion.

Dividend Stability

Consistent dividend increases reflect strong financial health and commitment to shareholder returns, enhancing investor confidence.

Negative Factors

Profitability Challenges

Persistent profitability challenges due to input cost inflation and supply chain issues could hinder long-term financial performance.

Brazil Market Struggles

Struggles in the Brazil market may limit international growth potential, affecting overall revenue diversification and expansion.

Turkey Supply Constraints

Ongoing supply constraints in turkey products could disrupt operations and increase costs, affecting profitability and market competitiveness.

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 streams, primarily by selling branded and private label processed meats, turkey products, and other food items. The Refrigerated Foods segment, which includes products like deli meats and bacon, accounts for a significant portion of the company's sales. The Grocery Products segment, featuring items such as chili and peanut butter, also contributes considerably to revenue. Hormel further capitalizes on the growing demand for protein alternatives and health-oriented products, which is evidenced by its investment in plant-based food options. Additionally, the company benefits from strategic partnerships with retailers and foodservice providers, enabling widespread distribution of its products. Seasonal promotions, brand loyalty, and consumer trends toward convenience foods also play a crucial role in driving Hormel's earnings.

Hormel Foods Financial Statement Overview

Summary

Hormel Foods exhibits a mixed financial performance. While the balance sheet shows improved leverage ratios, the income statement and cash flow analysis reveal challenges in profitability and cash generation. Declining margins and cash flow efficiency pose potential risks to future financial stability.

Income Statement

Hormel Foods shows a mixed performance in its income statement. The TTM Gross Profit Margin is 15.63%, which is lower than previous years, indicating a decline in profitability. The Net Profit Margin has also decreased to 3.95% in the TTM, down from 6.75% in 2024, reflecting reduced efficiency in converting revenue into profit. Revenue growth has been inconsistent, with a notable increase in the TTM but negative growth in prior years. The EBIT and EBITDA margins have similarly declined, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with some areas of concern. The Debt-to-Equity Ratio has improved significantly in the TTM to 0.25, indicating reduced leverage compared to previous years. However, the Return on Equity has decreased to 5.39% in the TTM, down from 10.07% in 2024, suggesting lower profitability from shareholders' equity. The Equity Ratio remains strong, indicating a solid capital structure, but the declining ROE could be a potential risk.

Cash Flow

Cash flow analysis reveals some weaknesses. The Free Cash Flow Growth Rate is negative in the TTM, indicating a decline in cash generation. The Operating Cash Flow to Net Income Ratio has decreased to 0.61 in the TTM, suggesting less cash is being generated from operations relative to net income. The Free Cash Flow to Net Income Ratio has also declined, reflecting challenges in maintaining cash flow efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.11B	11.92B	12.11B	12.46B	11.39B
Gross Profit	1.89B	2.02B	2.00B	2.16B	1.93B
EBITDA	1.01B	1.37B	1.34B	1.58B	1.38B
Net Income	478.20M	805.04M	793.57M	999.99M	908.84M
Balance Sheet
Total Assets	13.39B	13.43B	13.45B	13.31B	12.70B
Cash, Cash Equivalents and Short-Term Investments	703.59M	766.62M	753.20M	998.26M	634.69M
Total Debt	2.86B	2.86B	3.31B	3.30B	3.32B
Total Liabilities	5.48B	5.43B	5.71B	5.77B	5.72B
Stockholders Equity	7.92B	7.99B	7.73B	7.54B	6.97B
Cash Flow
Free Cash Flow	534.35M	1.01B	777.64M	857.28M	771.73M
Operating Cash Flow	845.25M	1.27B	1.05B	1.13B	1.00B
Investing Cash Flow	-298.59M	-236.91M	-689.54M	-258.04M	-3.63B
Financing Cash Flow	-614.00M	-1.03B	-600.06M	-486.68M	1.52B

Hormel Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRL, the sentiment is Positive. The current price of 24.34 is above the 20-day moving average (MA) of 22.81, above the 50-day MA of 23.15, and below the 200-day MA of 27.16, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 70.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRL.

Hormel Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	76 Outperform	$9.44B	7.70	31.76%	―	1.81%	24.67%
MKC	73 Outperform	$16.98B	21.90	13.92%	2.84%	1.64%	-1.83%
HRL	68 Neutral	$13.39B	28.02	6.02%	4.77%	1.55%	-40.81%
CPB	67 Neutral	$8.81B	14.75	15.64%	5.27%	6.40%	6.17%
JBS	66 Neutral	$14.83B	9.44	24.20%	9.85%	―	119.48%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	49 Neutral	$10.68B	―	-17.44%	4.36%	-0.66%	-326.55%

Hormel Foods Corporate Events

Hormel Foods Announces Corporate Restructuring Plan

On November 4, 2025, Hormel Foods Corporation announced a corporate restructuring plan aimed at reducing administrative expenses and aligning its workforce with future needs while continuing to invest in growth. The plan involves a voluntary early retirement program, closing open roles, and reducing certain positions, affecting approximately 250 corporate and sales roles by the end of 2025. The restructuring is expected to incur charges of $20 million to $25 million, mainly related to pension benefits and severance payments, with most costs occurring in late 2025 and early 2026. This move is part of Hormel Foods’ strategy to balance cost discipline with reinvestment in critical areas like technology and innovation, ensuring competitiveness and responsiveness to consumer needs.

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.