HRLCAUTIOUS

Gross Margin

17.4%

Updated 174h ago

Sector Performance

10th percentile

HRL

17.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods; HRL’s 17.4% means it retains only $0.174 of each sales dollar for overhead and profit.

This is well below the sector median of 44.4%, placing HRL in the 10th percentile among its peers—indicating it is far less efficient at converting sales into gross profit than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a slight increase of +1.2%, moving from 17.2% to 17.4% in the most recent period. A low gross margin combined with only a small quarterly uptick suggests limited near-term improvement, leaving HRL exposed to cost pressures or pricing constraints that could pressure profitability. This metric directly contradicts the overall CAUTIOUS verdict, because the extremely low margin relative to peers reinforces the need for caution rather than optimism.

Frequently Asked Questions

What does the Gross Margin tell investors about HRL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are HRL's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.