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Hormel Foods
(NYSE:HRL)
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Rating:57Neutral
Price Target:
$22.00
▼(-7.49% Downside)
Action:Reiterated
Date:08/28/26
HRL scores in the middle primarily due to mixed financial performance (profitability and revenue pressure offset by solid cash generation and a stable balance sheet). Technical conditions meaningfully weigh on the score (broad downtrend and weak momentum). Valuation is also mixed (high yield but a high P/E), while the latest earnings call adds modest support via improved guidance and margin/cash-flow progress despite ongoing top-line and cost headwinds.
Positive Factors
Reliable Cash Generation
Hormel continues to generate substantial cash despite weaker earnings. Strong free cash flow supports dividends, capital investment and balance-sheet flexibility, although conversion has moderated from historical highs.
Negative Factors
Weak Revenue and Profitability Trends
The decline in sales and profitability reduces operating leverage and limits earnings compounding. Although gross margin remains resilient, lower operating and net margins suggest that brand strength has not fully offset volume, mix and cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Reliable Cash Generation
Hormel continues to generate substantial cash despite weaker earnings. Strong free cash flow supports dividends, capital investment and balance-sheet flexibility, although conversion has moderated from historical highs.
Read all positive factors
Hormel Foods Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows how much pre-tax profit each business segment generates, revealing which parts of Hormel drive earnings and which are weighing on overall profitability. Helpful for spotting structural strengths or weaknesses, margin differences across businesses, and where cost pressures or pricing power will most affect the company’s bottom line.
Shows how much pre-tax profit each business segment generates, revealing which parts of Hormel drive earnings and which are weighing on overall profitability. Helpful for spotting structural strengths or weaknesses, margin differences across businesses, and where cost pressures or pricing power will most affect the company’s bottom line.
Data provided by:
The Fly
The FlyHormel Foods (HRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.05B
Dividend Yield5.49%
Average Volume (3M)3.77M
Price to Earnings (P/E)33.8
Beta (1Y)0.05
Revenue Growth0.73%
EPS Growth-54.64%
CountryUS
Employees20,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.63
Shares Outstanding550,314,940
10 Day Avg. Volume3,251,829
30 Day Avg. Volume3,765,014
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.65
Price to Sales (P/S)1.08
P/FCF Ratio24.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.00Price Target Upside9.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.5
Revenue Forecast (FY)$12.24B
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 provi...
How the Company Makes Money
Hormel makes money primarily by selling branded packaged foods to customers across two main channels: (1) retail (e.g., grocery, mass, club, and other consumer outlets) and (2) foodservice (e.g., restaurants, distributors, and institutional buyers...
Hormel Foods Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Neutral
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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%.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.15B | 12.11B | 11.92B | 12.11B | 12.46B | 11.39B |
| Gross Profit | 1.90B | 1.89B | 2.02B | 2.00B | 2.16B | 1.93B |
| EBITDA | 872.41M | 1.01B | 1.37B | 1.34B | 1.58B | 1.38B |
| Net Income | 342.65M | 478.20M | 805.04M | 793.57M | 999.99M | 908.84M |
Balance Sheet | ||||||
| Total Assets | 13.29B | 13.39B | 13.43B | 13.45B | 13.31B | 12.70B |
| Cash, Cash Equivalents and Short-Term Investments | 868.45M | 703.59M | 766.62M | 753.20M | 998.26M | 634.69M |
| Total Debt | 2.86B | 2.86B | 2.86B | 3.31B | 3.30B | 3.32B |
| Total Liabilities | 5.43B | 5.48B | 5.43B | 5.71B | 5.77B | 5.72B |
| Stockholders Equity | 7.84B | 7.90B | 7.99B | 7.73B | 7.54B | 6.97B |
Cash Flow | ||||||
| Free Cash Flow | 780.87M | 534.35M | 1.01B | 777.64M | 857.28M | 771.73M |
| Operating Cash Flow | 1.09B | 845.25M | 1.27B | 1.05B | 1.13B | 1.00B |
| Investing Cash Flow | -205.87M | -298.59M | -236.91M | -689.54M | -258.04M | -3.63B |
| Financing Cash Flow | -646.55M | -614.00M | -1.03B | -600.06M | -486.68M | 1.52B |
Hormel Foods Technical Analysis
Negative
23.78
Price Trends
24.71
Negative
23.07
Negative
23.00
Negative
Market Momentum
-0.48
Positive
21.63
Positive
9.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRL, the sentiment is Negative. The current price of 23.78 is below the 20-day moving average (MA) of 24.34, below the 50-day MA of 24.71, and above the 200-day MA of 23.00, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 21.63 is Positive, neither overbought nor oversold. The STOCH value of 9.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRL.
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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.81B | 9.06 | 25.58% | 3.78% | 9.54% | 108.44% | |
68 Neutral | $7.45B | 13.53 | 14.85% | ― | 1.42% | -55.97% | |
67 Neutral | $13.99B | 61.32 | -2.44% | 3.72% | 5.08% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.93B | 11.36 | 15.30% | 7.14% | -2.90% | 33.92% | |
58 Neutral | $14.73B | 18.75 | 17.67% | 8.14% | 334.15% | -18.31% | |
57 Neutral | $13.05B | 33.77 | 5.86% | 4.61% | 0.73% | -54.64% |
* Consumer Defensive Sector Average
HRL
Hormel Foods
21.28
-2.68
-11.20%
CPB
Campbell Soup
23.28
-6.47
-21.75%
SJM
JM Smucker
131.84
29.34
28.63%
MKC
McCormick & Company
54.54
-13.13
-19.41%
PPC
Pilgrim's Pride
31.11
-12.52
-28.70%
JBS
JBS
13.62
-1.50
-9.91%
Hormel Foods Corporate Events
Business Operations and StrategyExecutive/Board Changes
Hormel Foods appoints new executive vice president CFO
Positive
Aug 24, 2026
On August 24, 2026, Hormel Foods Corporation announced that Ash Bhumbla has been appointed Executive Vice President and Chief Financial Officer, effective September 8, 2026, succeeding interim CFO Paul R. Kuehneman, who will continue as vice presi...
Executive/Board Changes
Hormel Foods Names John Ghingo New President and CEO
Positive
Jul 28, 2026
On July 27, 2026, Hormel Foods’ board appointed current president and director John F. Ghingo as president and chief executive officer, effective October 26, 2026, succeeding interim CEO Jeffrey M. Ettinger, whose interim term will end on Oc...
Business Operations and StrategyExecutive/Board Changes
Hormel Foods Relocates International VP to Lead Asia Expansion
Positive
Jun 12, 2026
On June 9, 2026, Hormel Foods Corporation entered into an international assignment agreement with Swen Neufeldt, its group vice president of international, to relocate him to its Singapore-based subsidiary while he continues in his current role. T...
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.