Hormel Foods Corporation (HRL) Stock

Hormel Foods Corporation trades at a P/E ratio of 17.99, 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 15.95 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.03 indicates a premium valuation even accounting for growth.

With a beta of 0.31, 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 1.68 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 6.26%, meaning it retains $6.26 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 8.02% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.44% and ROA at 4.84%, the company achieves moderate returns on invested capital.

Hormel Foods Corporation's revenue grew by 4.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 3.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against PACKAGED FOODS industry averages for proper context.

Hormel Foods Corporation offers a dividend yield of 4.66%, paying $1.15 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 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 $1.37 per share, resulting in a payout ratio of 84.16%. 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 Nov 17, 2025.

Hormel Foods Corporation has a market capitalization of $13.6B, 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 550.00M shares outstanding, the company's ownership is relatively concentrated. As a participant in the PACKAGED FOODS industry, it competes with other firms in this sector.

Hormel Foods Corporation's book value per share is $14.70, while the current stock price is $21.55, resulting in a price-to-book (P/B) ratio of 1.47. 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.

11 analysts cover HRL with 36% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $28.75 implies 33.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 1 Buy, 7 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.