Hormel Foods Corp

Consumer Staples
Meat/Poultry/Fish
www.hormelfoods.com

Earnings Score
Moat Score
Safety Score

Market Cap $16.01B
PE 21
Debt $2.86B
Cash $840.40M
EV $18.04B
FCF $890.57M

Earnings

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Sales & Net Margins

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Earnings	$756.43M
EBIT	$1.01B
ROE	9%
ROA	8%
FCF	$890.57M
Equity	$8.04B
Growth Stability	84%
PE	21.17
PEG	-5.69
PB	1.99
P/FCF	17.98
P/S	1.34
Price/Cash	0.05
Debt/Equity	0.36
Debt/FCF	3.22
Net Margins	6%
Gross Margins	17%
Op. Margins	8%
Earnings CAGR	-1%
Sales Growth YoY	-0%
Sales Growth QoQ	-5%
Sales CAGR	4%
FCF CAGR	3%
Equity CAGR	8%
Earnings Stability	0.14
Earnings Growth YoY	-22%
Earnings Growth QoQ	-22%
Earnings CAGR 5Y	-4%

Sales CAGR 5Y	6%
FCF CAGR 5Y	6%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	-2%
Sales CAGR 3Y	-2%
FCF CAGR 3Y	3%
Equity CAGR 3Y	3%
Market Cap	$16.01B
Revenue	$11.91B
Dividend Yield	4%
Payout Ratio	82%
Assets	$13.40B
Total Debt	$2.86B
Cash	$840.40M
Shares Outstanding	549.46M
EV	18.04B
Earnings Score	6%
Moat Score	85%
Safety Score	90%
Final Score	60%
Working Capital	1.93B
Current Ratio	2.45
Gross Profit	$1.99B
Shares Growth 3y	0%
Equity Growth QoQ	0%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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Hormel Foods is a protein-focused branded food company. Its brands include its namesake Hormel, Spam, Jennie-O, Dinty Moore, Applegate, Wholly Guacamole, and Skippy. The vast majority of the company's revenue is U.S.-based: 64% U.S. retail, 28% U.S. food service, and 8% international. By product type, in fiscal 2021, 23% of revenue was shelf-stable foods, 18% was poultry (branded and commodity), 55% was other perishable food, and 3% was other, primarily nutritional products. The company holds the number-one market position in shelf-stable meat, shelf-stable ready meals, pepperoni, natural/organic deli meat, and guacamole and the number-two position in turkey, bacon, chilled ready meals, and peanut butter.

SEC Filings

Direct access to Hormel Foods Corp (HRL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Jan 26
2024
- 10-K Oct 27
- 10-Q Jul 28
- 10-Q Apr 28
- 10-Q Jan 28
2023
- 10-K Oct 29
- 10-Q Jul 30
- 10-Q Apr 30
- 10-Q Jan 29

Sector Comparison

How does Hormel Foods Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Hormel Foods Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%

Stability 14%

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Hormel Foods Corp Discounted Cash Flow

Fully customizable DCF calculator online for Hormel Foods Corp .

Years

Calculation mode

= $11B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$891M	$914M	$938M	$962M	$987M	$1B	$1B	$1.1B	$1.1B	$1.1B	$1.2B	$12B
DCF		$831M	$775M	$723M	$674M	$629M	$587M	$547M	$511M	$476M	$444M	$4.4B
Value	$11B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Net Margins	7%	9%	9%	11%	10%	9%	8%	8%	7%	7%	6%
ROA	-	21%	18%	15%	15%	11%	9%	10%	8%	8%	8%
ROE	-	20%	17%	18%	17%	14%	13%	13%	10%	10%	9%

Bad Net Margins (5.71%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Debt over FCF	-	0.34	0.32	0.73	0.4	2.05	4.33	3.86	5.48	2.84	3.22
Debt over Equity	0.11	0.06	0.05	0.11	0.04	0.24	0.48	0.44	0.55	0.36	0.36
Growth Stability	-	-	-	100%	100%	96%	94%	100%	84%	89%	84%

Neutral Debt/FCF ratio (3.22)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.36)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (84%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	CAGR 5Y
Revenue YoY growth	-	3%	-4%	4%	-1%	1%	19%	9%	-3%	-2%	6%
Earnings YoY growth	-	30%	-5%	20%	-3%	-7%	0%	10%	-21%	1%	-4%
Equity YoY growth	-	11%	11%	13%	6%	9%	9%	8%	3%	3%	6%
FCF YoY growth	-	-13%	7%	8%	-26%	21%	1%	11%	-9%	30%	6%