Hormel Foods Corporation

Valuation Analysis

About the Company

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products, including resh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration; and shelf-stable products, such as canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. It sells its products under the HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BACON 1, BL

Hormel Foods Corporation Stock at a Glance

Hormel Foods Corporation (HRL) is currently trading at $24.75 with a market capitalization of $13.6B. The trailing P/E ratio stands at 29.12x, with a forward P/E of 15.86x. The 52-week range spans from $19.70 to $31.86; the current price is 22.3% below the yearly high. Year-over-year revenue growth stands at -2.9%. The net profit margin stands at 3.82%.

💰 Dividend

Hormel Foods Corporation pays an annual dividend of $1.17 per share, representing a yield of 4.73%. The payout ratio stands at 137.06%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

8 analysts rate Hormel Foods Corporation (HRL) on consensus: Hold. The average price target is $26.50, implying +7.07% from the current price. Analyst price targets range from $25.00 to $30.00.

Hormel Foods Corporation: The Investment Case in Detail

Hormel Foods Corporation (HRL) operates in the Consumer Defensive — specifically Packaged Foods — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue is contracting at -2.9% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 3.82%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

What to Watch Next

• The forward P/E of 15.86x is meaningfully below the trailing 29.12x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (8.61%).

Trading Data

💵 Dividend Info

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