HRLHRL
US • —
$24.82
P/E
29.29
PEG
—
FCF Yield
—
Rev Growth YoY
+2.5% YoY
Gross Margin
15.8%
Health Score
5/10
D/E Ratio
0.36
Confidence
LOW
Business Snapshot
Hormel Foods Corporation is a global branded food company known for its portfolio of meat, poultry, and shelf-stable packaged food products. It operates in the highly competitive packaged food industry, holding a position as a well-established consumer staple company with recognizable household brands. The company generates revenue from a mix of retail, foodservice, and international segments. A defining characteristic of Hormel is its diverse brand portfolio, which helps provide stability across varying economic cycles and consumer spending patterns.
Financial Health
Hormel's gross margin of 15.8% sits within the range of a packaged food company but is relatively thin, and it is paired with a net margin of 3.8%. The balance sheet appears healthy with a Debt/Equity ratio of 0.36x, indicating a conservative use of leverage, and a current ratio of 2.47x, reflecting strong short-term liquidity...
Risk Assessment
- VALUATION — P/E of 29.29x is elevated vs the sector average of 22x, suggesting the stock is priced for above-average growth that is not currently evident.
- EARNINGS QUALITY — Earnings growth of -37.7% YoY signals a significant deterioration in profitability, even though the company has beaten estimates in 3 of 4 recent quarters.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is unavailable, making it impossible to assess organic cash generation or the sustainability of dividend payments....
Hormel's gross margin of 15.8% sits within the range of a packaged food company but is relatively thin, and it is paired with a net margin of 3.8%. The balance sheet appears healthy with a Debt/Equity ratio of 0.36x, indicating a conservative use of leverage, and a current ratio of 2.47x, reflecting strong short-term liquidity. Return on equity stands at 5.9%, which, while modest, aligns with a low-leverage capital structure. Free cash flow and FCF yield are unavailable, preventing a full assessment of cash generation efficiency. Overall financial health is adequate, supported by low debt and good liquidity, but the low margins and unknown cash flow profile suggest limited flexibility for aggressive reinvestment or dividend growth.
- VALUATION — P/E of 29.29x is elevated vs the sector average of 22x, suggesting the stock is priced for above-average growth that is not currently evident. - EARNINGS QUALITY — Earnings growth of -37.7% YoY signals a significant deterioration in profitability, even though the company has beaten estimates in 3 of 4 recent quarters. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow data is unavailable, making it impossible to assess organic cash generation or the sustainability of dividend payments.
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