📊 HRL Key Takeaways
Is Hormel Foods Corp. /DE/ (HRL) a Good Investment?
Hormel demonstrates solid financial health with a fortress balance sheet (Debt/Equity 0.30x, Interest Coverage 11.5x) and stable cash flow generation ($377M FCF), but fundamentals reveal a stagnant business with minimal revenue growth (+1.6%) and essentially flat earnings (+0.1%). Very low returns on equity (4.3%) and assets (2.5%) indicate insufficient capital efficiency despite operational stability.
Hormel Foods shows solid financial health, with strong liquidity, manageable leverage, and positive free cash flow generation. However, growth quality is mixed: revenue is only modestly higher, net income is essentially flat, and the sharp decline in diluted EPS suggests pressure from costs, mix, or share-related factors. The fundamentals support stability more than acceleration, making the company look resilient but not especially strong on current profitability trends.
Hormel Foods Corp. /DE/ Key Strengths (HRL)
- Fortress balance sheet with low leverage (Debt/Equity 0.30x) and conservative capital structure
- Excellent debt servicing capability with 11.5x interest coverage ratio
- Solid free cash flow generation ($377M) with 6.3% FCF margin demonstrating cash generation quality
- Strong liquidity position (Current Ratio 1.94x) with $826.8M cash reserves
- Strong liquidity with a 2.66x current ratio and 1.37x quick ratio
- Manageable leverage with debt/equity of 0.36x and adequate 6.1x interest coverage
- Positive free cash flow of $280.22M with a healthy 9.3% FCF margin
HRL Stock Risks: Hormel Foods Corp. /DE/ Investment Risks
- Stagnant growth with only +1.6% revenue increase YoY and essentially flat net income (+0.1%)
- Concerning 40.8% YoY decline in diluted EPS despite flat net income suggests significant share dilution or capital structure issues
- Weak returns on capital with ROE of 4.3% and ROA of 2.5% indicate poor efficiency of invested capital
- Commodity meat packing industry with thin 7.7% operating margins and 16.5% gross margin exposure to input cost volatility
- Diluted EPS fell 40.8% year over year despite slight revenue growth, indicating weaker earnings quality
- Low ROE of 2.3% and ROA of 1.4% point to weak capital efficiency
- Margins remain relatively thin, leaving limited cushion if input costs or demand weaken
Key Metrics to Watch
- Revenue growth acceleration and gross margin trends amid commodity price cycles
- EPS bridge analysis to understand driver of 40.8% decline (share dilution vs. earnings quality)
- Return on invested capital trends and free cash flow sustainability relative to capital expenditure needs
- Operating margin and gross margin trend
- EPS recovery relative to revenue growth
Hormel Foods Corp. /DE/ (HRL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Hormel Foods Corp. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HRL Profit Margin, ROE & Profitability Analysis
HRL vs Market Sector: How Hormel Foods Corp. /DE/ Compares
How Hormel Foods Corp. /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hormel Foods Corp. /DE/ Stock Overvalued? HRL Valuation Analysis 2026
Based on fundamental analysis, Hormel Foods Corp. /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hormel Foods Corp. /DE/ Balance Sheet: HRL Debt, Cash & Liquidity
HRL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hormel Foods Corp. /DE/'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $1.45 reflects profitable operations.
HRL Revenue Growth, EPS Growth & YoY Performance
HRL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.9B | $157.5M | $0.29 |
| Q1 2026 | $3.0B | $170.6M | $0.31 |
| Q3 2025 | $2.9B | $176.7M | $0.32 |
| Q2 2025 | $2.9B | $180.0M | $0.33 |
| Q1 2025 | $3.0B | $170.6M | $0.31 |
| Q3 2024 | $2.9B | $162.7M | $0.30 |
| Q2 2024 | $2.9B | $189.3M | $0.34 |
| Q1 2024 | $3.0B | $217.7M | $0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hormel Foods Corp. /DE/ Dividends, Buybacks & Capital Allocation
HRL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hormel Foods Corp. /DE/ (CIK: 0000048465)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HRL
What is the AI rating for HRL?
Hormel Foods Corp. /DE/ (HRL) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRL's key strengths?
Claude: Fortress balance sheet with low leverage (Debt/Equity 0.30x) and conservative capital structure. Excellent debt servicing capability with 11.5x interest coverage ratio. ChatGPT: Strong liquidity with a 2.66x current ratio and 1.37x quick ratio. Manageable leverage with debt/equity of 0.36x and adequate 6.1x interest coverage.
What are the risks of investing in HRL?
Claude: Stagnant growth with only +1.6% revenue increase YoY and essentially flat net income (+0.1%). Concerning 40.8% YoY decline in diluted EPS despite flat net income suggests significant share dilution or capital structure issues. ChatGPT: Diluted EPS fell 40.8% year over year despite slight revenue growth, indicating weaker earnings quality. Low ROE of 2.3% and ROA of 1.4% point to weak capital efficiency.
What is HRL's revenue and growth?
Hormel Foods Corp. /DE/ reported revenue of $6.0B.
Does HRL pay dividends?
Hormel Foods Corp. /DE/ pays dividends, with $320.4M distributed to shareholders in the trailing twelve months.
Where can I find HRL SEC filings?
Official SEC filings for Hormel Foods Corp. /DE/ (CIK: 0000048465) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRL's EPS?
Hormel Foods Corp. /DE/ has a diluted EPS of $0.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HRL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Hormel Foods Corp. /DE/ has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HRL stock overvalued or undervalued?
Valuation metrics for HRL: ROE of 4.3% (sector avg: 15%), net margin of 5.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is HRL's AI grade for 2026?
Our dual AI analysis gives Hormel Foods Corp. /DE/ a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HRL's free cash flow?
Hormel Foods Corp. /DE/'s operating cash flow is $528.2M, with capital expenditures of $151.2M. FCF margin is 6.3%.
How does HRL compare to other Market stocks?
Vs Default sector averages: Net margin 5.7% (avg: 12%), ROE 4.3% (avg: 15%), current ratio 1.94 (avg: 1.8).