Hormel Foods Corporation (HRL) AI Stock Analysis

Established in 1891 and headquartered in Austin, Minnesota, Hormel Foods Corporation processes and distributes meat, nuts, and food products globally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. Its shelf-stable offerings include canned luncheon meats, nut butters, snack nuts, chilies, and microwaveable meals, while refrigerated lines supply fresh meats, sausages, hams, bacons, and guacamoles across retail, foodservice, and deli channels. Jennie-O Turkey Store delivers branded and unbranded poultry products. Hormel markets its goods under well-known labels such as SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Jennie-O, and Justin's.

Hormel's revenue expanded at a 5-year CAGR of 4.7% from FY2020 to FY2025, reaching $12.11B in FY2025 with 1.6% growth. However, operating margin narrowed from 10.5% in FY2022 to 5.9% in FY2025, while net income dropped to $478.2M with a 4.0% net margin. Trailing twelve-month revenue stood at $12.15B, but the quarter ended July 31, 2026, saw quarterly revenue decline 2.4% year-over-year. Quarterly earnings for that period fell 67.2% year-over-year, leaving trailing twelve-month EPS at $0.62 and trailing twelve-month operating margin at 8.6%.

As of July 31, 2026, Hormel held $868.4M in cash and short-term investments against total debt of $2.86B, resulting in net debt of $1.99B. The company maintains a current ratio of 1.88 and a debt-to-equity ratio of 0.36, supported by $7.84B in shareholders' equity. In FY2025, operating cash flow reached $845.3M and free cash flow was $534.3M. Capital expenditures totaled $310.9M, while dividends paid consumed $633.2M.

At $20.40, Hormel trades at a trailing P/E of 32.9x, which is higher than the 23.3x median of its S&P 500 Consumer Defensive peers. However, its forward P/E of 12.9x is lower than the peer median of 15.3x, and its enterprise value-to-revenue ratio stands at 1.1x. Over the past year, Hormel shares fell 9.3%, compared to a 16.8% return for the SPY. Over a 5-year span, the stock has dropped 42.8%, trailing the SPY return of 83.0%.

Hormel pays an annual forward dividend of $1.17 per share, translating to a dividend yield of 5.74%. The company has distributed dividends for 42 consecutive years and generated a 5-year annualized dividend growth rate of 4.5%. Distributions are paid quarterly, with an 81.8% payout ratio and the most recent ex-dividend date on October 13, 2026.

Wall Street coverage includes 1 Strong Buy, 2 Buys, and 7 Holds, with 0 Sell or Strong Sell ratings. The mean price target is $25.31, implying a 24.1% upside compared to the last close of $20.40. For the current fiscal year ending October 31, 2026, analysts estimate revenue of $12.13B and EPS of $1.48, representing 8.3% EPS growth. Hormel has beaten EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for December 3, 2026.

This page is an AI-written research summary of Hormel Foods Corporation (HRL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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