HRLCAUTIOUS

HRL Return on Equity (ROE) Analysis

5.8%

Updated 249h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and the current 5.8% means HRL earns $0.058 for every $1 of equity invested.

Sector Performance

24th percentile

HRL

5.8%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

6.1%(Apr 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and the current 5.8% means HRL earns $0.058 for every $1 of equity invested.

That sits well below the sector median of 13.6%, placing HRL in the 22nd percentile among sector peers, so the company is a laggard on profitability relative to its industry. The trend data is not available: year-over-year change is N/A, quarter-over-quarter change is N/A, and the historical values show only 5.8% as the most recent figure, so no direction can be inferred from the metric alone. The combination of a low level with an unknown trend points to an elevated risk that weak profitability is entrenched, since there is no evidence of improvement to counter the poor standing. This metric directly contradicts the overall CAUTIOUS verdict only in the sense that it reinforces caution — the low ROE and bottom-quartile rank support being cautious rather than optimistic. Given the sector median is more than double HRL’s figure, the metric clearly lends weight to the cautious outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HRL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HRL's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.