Hormel Foods Corporation (HRL) Stock

Hormel Foods Corporation trades at a P/E ratio of 22.24, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 19.65 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.24 indicates a premium valuation even accounting for growth.

With a beta of 0.34, Hormel Foods Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.09 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Hormel Foods Corporation achieves a profit margin of 6.27%, meaning it retains $6.27 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 8.61% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.37% and ROA at 4.75%, the company achieves moderate returns on invested capital.

Hormel Foods Corporation's revenue grew by 0.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 3.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against MEAT PACKING PLANTS industry averages for proper context.

Hormel Foods Corporation offers a dividend yield of 3.81%, paying $1.15 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 7/14/2025.

The dividend sustainability can be assessed through the payout ratio - Hormel Foods Corporation pays $1.15 per share in dividends against earnings of $1.36 per share, resulting in a payout ratio of 84.19%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 8/15/2025.

Hormel Foods Corporation has a market capitalization of $16.63B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 549.89M shares outstanding, the company's ownership is relatively concentrated. As a participant in the MEAT PACKING PLANTS industry, it competes with other firms in this sector.

Hormel Foods Corporation's book value per share is $14.61, while the current stock price is $29.50, resulting in a price-to-book (P/B) ratio of 2.02. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

12 analysts cover HRL with 17% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $32.32 implies 9.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 1 Buy, 10 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.