Hormel Foods Corporation (HRL) Stock

Hormel Foods Corporation trades at a P/E ratio of 23.87, 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 14.33 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.40 indicates reasonable value when growth is considered.

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 1.44 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 4.03%, meaning it retains $4.03 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 11.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 6.12% and ROA at 4.43%, the company achieves moderate returns on invested capital.

Hormel Foods Corporation's revenue declined by 2.90% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 5.10% 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 5.52%, paying $1.16 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 Jul 13, 2026.

The dividend sustainability can be assessed through the payout ratio - Hormel Foods Corporation pays $1.16 per share in dividends against earnings of $0.89 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Aug 17, 2026.

Hormel Foods Corporation has a market capitalization of $11.7B, 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 550.28M 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 $14.43, while the current stock price is $21.01, resulting in a price-to-book (P/B) ratio of 1.46. 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.

10 analysts cover HRL with 30% 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 $25.12 implies 19.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 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.