HRL
HORMEL FOODS CORP /DE/
Consumer Staples • CIK: 0000048465
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Market Cap
$13.11B
P/E (TTM)
27.4x
Rev Growth (TTM)
+1.6%
Net Margin (TTM)
4.0%
FCF Yield (TTM)
4.1%
FCF Margin (TTM)
4.4%
Cash Flow Health
Free Cash Flow7/8 positive
TTM$534M
Q4 '25
$231M+174%
Q3 '25
$85M+553%
FCF Margin
TTM4.4%
Q4 '257.3%+161%
Sector: 8.5%Below Avg
OCF Margin7.0%
OCF/NI1.77x
CapEx Coverage2.7x
FCF Yield4.1%
FCF Growth (2Y)–
Cash Conversion Cycle
58 days
DSO: 23+DIO: 60−DPO: 26
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder Yield
TTM4.9%
Div Yield4.9%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)4.9%
FCF Payout Ratio119.4%
Free Cash Flow (TTM)$534.3M
Stock Repurchases ()$0
Capital Return / FCF118.5%
Est. Dividends Paid (TTM)$638.2M
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
5.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
4.3%
Asset Turnover
0.90x
8Q: 0.88x
Leverage (1+D/E)
1.36x
D/E: 0.36x
DuPont: 5.2% ≈ 5.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.51x
8Q:–
Invested Cap Turn
1.19x
8Q:–
CapEx Intensity
3.1%
8Q:–
CapEx/Depreciation
1.18x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $12.1B | $3.2B↑5.0% | $3.0B↑4.6% | $2.9B↓3.0% | $3.0B↓4.8% | $3.1B↑8.3% | $2.9B↑0.4% | $2.9B↓3.7% | $3.0B |
Operating Income | $718.6M | $2.2M↓99.1% | $239.7M↓3.5% | $248.4M↑8.8% | $228.3M↓22.5% | $294.5M↑24.4% | $236.7M↓6.2% | $252.3M↓11.3% | $284.4M |
Net Income | $478.2M | $-56.1M↓130.6% | $183.7M↑2.1% | $180.0M↑5.5% | $170.6M↓22.5% | $220.2M↑24.6% | $176.7M↓6.6% | $189.3M↓13.5% | $218.9M |
Operating Cash Flow | $845.3M | $322.9M↑106.1% | $156.7M↑177.6% | $56.4M↓81.7% | $309.2M↓24.3% | $408.6M↑87.4% | $218.0M↓7.7% | $236.1M↓41.5% | $404.0M |
Free Cash Flow | $534.3M | $231.4M↑173.9% | $84.5M↑553.3% | $-18.6M↓107.9% | $237.0M↓27.0% | $324.8M↑113.0% | $152.5M↓13.4% | $176.2M↓50.6% | $356.8M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
27.4x
Valuation Lenses
Earnings
27.4x
vs – sector
Cash Flow
4.0x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
5.4P/E per %ROIC
ROIC: 5.1%
Shareholder Returns
Dividend
4.9%
Buyback
–
Total Yield
4.9%
Market Cap$13.11B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
59/100
Average
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Below Avg
6.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
5.1%
8Q:–
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 4.3%
Asset Turnover: 0.90x
Earnings Quality
Cash Conversion
1.77x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin15.6%
Capital Efficiency
Invested Capital Turnover1.19x
Working Capital
Cash Conversion Cycle58 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
52/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
1.6%
OpInc Growth YoY
-99.3%
EPS Growth YoY
-40.4%
FCF 3Y CAGR
N/A
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
15.6%
Operating
5.9%
Below Avg in sector
Net
4.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+0.5 pts
FCF: 4.4% | Net: 4.0%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $2.15B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
0.36x
Balance sheet risk & solvency analysis