HRLCAUTIOUS

HRL Gross Margin Analysis

17.4%

Updated 249h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of each sales dollar a company keeps after paying for the direct costs of producing its products; at 17.4%, HRL retains $0.174 per dollar of revenue after those costs.

Sector Performance

9th percentile

HRL

17.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

17.2%(Jun 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of each sales dollar a company keeps after paying for the direct costs of producing its products; at 17.4%, HRL retains $0.174 per dollar of revenue after those costs.

This sits far below its sector median of 45.6%, placing HRL in the 9th percentile among peers, meaning roughly 91% of comparable companies have a higher gross margin. The trend data is not available, as both the year-over-year change and quarter-over-quarter change are listed as N/A, and the historical series shows only the current figure of 17.4%. A low margin combined with no observable trend raises the risk that HRL has limited pricing power or higher production costs, while also leaving no evidence of recent improvement to suggest a near-term turnaround. That lack of trend data also removes any basis for anticipating margin expansion, so the risk is asymmetric to the downside. This metric directly supports the overall CAUTIOUS verdict, as a 9th-percentile gross margin is a clear competitive disadvantage that warrants caution.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.