Hormel Foods (HO7) AI Stock Analysis

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Hormel Foods

(BX Swiss:HO7)

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Positive Factors

Cash GenerationStrong free cash flow provides Hormel with internal funding for capital investment, dividends and strategic initiatives. Although conversion has softened, continued cash production supports financial resilience and gives management flexibility to navigate changing input costs and demand.

Negative Factors

Profitability PressureLower net and operating margins indicate that Hormel’s earnings power has weakened materially, even though gross margin remains relatively resilient. Persistent profit compression can reduce reinvestment capacity and make future earnings more sensitive to costs and channel mix.

Hormel Foods (HO7) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 12.08B
Dividend Yield: 6.09%
Average Volume (3M): 80
Price to Earnings (P/E): 34.8
Beta (1Y): 0.76
Revenue Growth: -6.86%
EPS Growth: -58.28%
Country: Switzerland
Employees: 20,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

Hormel Foods Business Overview & Revenue Model

Company Description

Hormel Foods Corporation is a prominent global food company that specializes in the creation, preparation, and supply of a diverse array of meat, nut, and other culinary items. Its extensive clientele spans retail outlets, institutional food provider...

Hormel Foods Earnings Call Summary

Earnings Call Date:Aug 27, 2026(Q3-2026)|Next Earnings Date:Dec 03, 2026

Earnings Call SentimentNeutral

The call presented a balanced view: meaningful bottom-line progress (adjusted EPS +6%, margin expansion, stronger cash generation and tightened EPS guidance) and clear strategic actions (portfolio sharpening, leadership appointments) are offset by near-term top-line softness (Q3 organic sales -2%), retail volume declines, international one-time hits and supply-chain/logistics headwinds. Management expects commodity tailwinds to benefit future quarters but cautions that the consumer environment remains choppy.

Positive Updates

Adjusted EPS Growth

Adjusted earnings per share for Q3 were $0.37, up 6% year-over-year; company raised and narrowed fiscal 2026 adjusted EPS guidance to $1.45–$1.51 (previously $1.43–$1.51) and expects full-year adjusted EPS growth of 6%–10%.

Negative Updates

Quarterly Organic Net Sales Decline

Third-quarter organic net sales declined 2% year-over-year, driven by deliberate portfolio shaping actions, softer commodity markets and a pressured consumer environment.

Company Guidance

Management updated fiscal 2026 guidance, narrowing and raising full‑year adjusted EPS to $1.45–$1.51 (prior $1.43–$1.51) and guiding net sales of $12.1–$12.2 billion with organic net‑sales growth tightened to 1%–2% (from 1%–4%), while saying the revised adjusted operating income and EPS outlook implies year‑over‑year adjusted EPS growth of ~6%–10%; they also noted Q4 EPS at roughly $0.37 midpoint (up to ~$0.40 at the high end). Supporting metrics cited include nine‑month organic net sales +1%, year‑to‑date adjusted operating margin improvement of ~30 basis points and adjusted EPS +6%; Q3 results were adjusted EPS $0.37 (up 6%), adjusted operating margin 9% (up 60 bps), gross profit $472M (gross margin 15.9%), operating cash flow $241M (+54%), capex $68M, dividends returned $161M, and cash on hand $840M; management expects more benefit from lower pork input costs to flow in coming quarters, partly offset by elevated freight and beef costs (and noted a 53rd week in fiscal 2027).

Hormel Foods Risk Analysis

Hormel Foods disclosed 21 risk factors in its most recent earnings report. Hormel Foods reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Hormel Foods Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

CH:HO7 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFD	69Neutral	$7.58B	8.36	13.00%	6.53%	-1.57%	3.81%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JBS	59Neutral	$13.29B	17.23	16.91%	8.03%	109.44%	-56.29%
KHC	58Neutral	$28.70B	-8.31	-8.91%	6.59%	-1.53%	21.36%
CAG	44Neutral	$7.25B	-3.73	-26.28%	7.08%	-1.80%	-323.82%
PPC	42Neutral	$6.72B	20.90	8.53%	―	-0.14%	-74.01%

* Consumer Defensive Sector Average

Performance Comparison

CH:HO7 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:HO7	Hormel Foods Corp	16.14	0.24	1.53%
CAG	Conagra Brands	14.83	-1.47	-8.99%
PPC	Pilgrim's Pride Corp	28.21	-9.44	-25.07%
KHC	Kraft Heinz Co	24.27	0.91	3.90%
JBS	Jbs N.V.	12.45	0.29	2.34%
SFD	Smithfield Foods, Inc.	19.14	-1.73	-8.28%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Hormel Foods AI Stock Analysis