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HRL

HRL

Consumer Defensive · Packaged Foods

$24.80+0.87%
Mkt Cap: $13.65BDY: 4.76%

Performance

HRL (HRL) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

HRL (HRL) operates in the Packaged Foods space within the Consumer Defensive sector. With a market cap of $13.6B, it qualifies as a mid-cap company. Revenue has been contracting year-over-year, a headwind that investors will watch closely in upcoming earnings.

Bull Case3
  • Forward P/E (15.9×) is lower than trailing P/E (29.2×) — analysts expect earnings to improve
  • Dividend yield of 4.76% provides consistent income on top of price appreciation
  • Low beta of 0.34 — less volatile than the market, suitable for conservative portfolios
Bear Case5
  • P/E of 29.2× is above average — valuation requires continued strong growth to justify
  • Revenue declined 3% YoY — warning sign for business momentum
  • Earnings fell 5% YoY — profitability is under pressure
  • Thin profit margin of 3.8% — little buffer against cost increases
  • High debt-to-equity of 4.24× increases financial risk, especially with elevated interest rates

Verdict

Avoid

Significant fundamental concerns outweigh positives. High risk at current levels.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

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Revenue & Results

Dividends

Current DY

4.76%

5Y Avg Annual

$1.0036

Last Payment

$0.2930

Ex-Date

04/13/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest04/13/2026
05/18/2026$0.29304.73%
01/12/2026
02/16/2026$0.29304.73%
10/14/2025
11/18/2025$0.29004.68%
07/14/2025
08/18/2025$0.29004.68%
04/14/2025
05/19/2025$0.29004.68%
01/13/2025
02/17/2025$0.29004.68%
10/15/2024
11/19/2024$0.28304.57%
07/15/2024
08/19/2024$0.28304.57%

Magic Number

Shares needed to self-fund your next purchase

$24.80

Price

÷

$0.2930

Last div. (quarterly)

=

85

shares

Own 85 HRL shares ($2,107.58) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$2,107.58

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Aug 27, 2026

72

days

EPS (TTM)

$0.85

P/E (TTM)

29.2

Fwd P/E

15.9

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$13.65B
P/E Ratio29.17
Forward P/E15.89
P/B Ratio
PEG Ratio1.85
EPS (TTM)$0.85

Trading

Open
Day High
Day Low
52W High$31.86
52W Low$19.70
Volume
Avg Volume (3M)5,439,863
Beta0.34

Dividends

Dividend Yield4.76%
Annual Rate$1.17
Ex-Div Date2026-07-13
Payout Ratio137.06%

Profitability

Profit Margin3.82%
Operating Margin11.06%
ROE5.83%
ROA4.58%
Revenue Growth-2.90%
Earnings Growth-5.10%

Balance Sheet

Total Revenue$12.22B
Total Debt$250.00M
Debt / Equity4.24
Current Ratio1.94
Free Cash Flow$471.17M

Fair Value Estimates

Current price: $24.80

Graham Number

√(22.5 × EPS × Book Value)

$16.62

-33.0% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$18.04

-27.2% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

6/10

60% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

5.8%

Return on equity — measures how efficiently capital is used

Positive profit margin

3.8%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

-2.9%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

-5.1%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

4.24×

Low financial leverage reduces risk of distress

Current ratio above 1

1.94×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$135M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

4.76%

Stock must distribute income to shareholders

Related Assets

Consumer Defensive

About HRL

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, BLACK LABEL, BREAD READY, BURKE, CAFÉ H, CERATTI, CHI-CHI'S, COLUMBUS, COMPLEATS, CORN NUTS, CURE 81, DAN'S PRIZE, DI LUSSO, DINTY MOORE, DON MIGUEL, DOÑA MARIA, EMBASA, FAST ‘N EASY, FIRE BRAISED, FONTANINI, HERDEZ, HORMEL GATHERINGS, HOUSE OF TSANG, JENNIE-O, JUSTIN'S, LA VICTORIA, LAYOUT, LLOYD'S, MARY KITCHEN, MR. PEANUT, NATURAL CHOICE, NUT-RITION, OLD SMOKEHOUSE, OVEN READY, PILLOW PACK, PLANTERS, ROSA GRANDE, SADLER'S SMOKEHOUSE, SKIPPY, SPAM, SQUARE TABLE, SPECIAL RECIPE, VALLEY FRESH, and WHOLLY brands through sales personnel, independent brokers, and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.

Sector

Consumer Defensive

Industry

Packaged Foods

Location

Austin, United States

Employees

20,000