|HRL Overview
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%

LATEST EARNINGS

Q1 2026
9 days ago
View source
Revenue
$3.00B
+2.0%
Net Income
N/A
EPS
$0.33
  • Expects Q1 net sales of approximately $3 billion, reflecting 2% organic net sales growth compared to Q1 FY2025.
  • This marks the Company’s fifth consecutive quarter of year-over-year organic net sales growth.
  • Reaffirmed fiscal 2026 organic net sales and adjusted diluted earnings per share guidance.
  • Management expressed confidence in initiatives to return Hormel Foods to profitable growth.

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: 60DPO: 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

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024Q1 2024
Revenue
$12.1B
$3.2B5.0%
$3.0B4.6%
$2.9B3.0%
$3.0B4.8%
$3.1B8.3%
$2.9B0.4%
$2.9B3.7%
$3.0B
Operating Income
$718.6M
$2.2M99.1%
$239.7M3.5%
$248.4M8.8%
$228.3M22.5%
$294.5M24.4%
$236.7M6.2%
$252.3M11.3%
$284.4M
Net Income
$478.2M
$-56.1M130.6%
$183.7M2.1%
$180.0M5.5%
$170.6M22.5%
$220.2M24.6%
$176.7M6.6%
$189.3M13.5%
$218.9M
Operating Cash Flow
$845.3M
$322.9M106.1%
$156.7M177.6%
$56.4M81.7%
$309.2M24.3%
$408.6M87.4%
$218.0M7.7%
$236.1M41.5%
$404.0M
Free Cash Flow
$534.3M
$231.4M173.9%
$84.5M553.3%
$-18.6M107.9%
$237.0M27.0%
$324.8M113.0%
$152.5M13.4%
$176.2M50.6%
$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