Reading the tape
NYSE: HRL
Hormel Foods Corporation
Consumer Defensive · Packaged Foods
Market Cap
$11.24B
52w High
$31.86
52w Low
$20.32
P/E
22.98
Volume
3.28M
Outstanding Shares
550.28M
Price vs Fundamentals
Why The Stock Is Moving
Likely fundamental deteriorationModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: -30.45%Revenue (TTM): 1.95%FCF (TTM): -35.15%P/FCF: 10th pct
What changed
The stock fell 30.45% over the last year. Revenue grew 1.95% over the trailing twelve months. Operating margin moved from 8.49% to 6.04%. Free cash flow declined 35.15% over the trailing twelve months.
What the market seems to be pricing
The market is reacting to weaker business momentum more than just compressing the valuation multiple. Even if the shares already screen cheap on P/FCF, investors are still discounting lower future earnings power.
What would invalidate this read
Operating margin stands at 6.04%. Free cash flow fell 35.15% — a return toward positive territory would undermine the deterioration thesis. If margins and cash flow stabilize while the stock stays depressed, the gap shifts from fundamental damage toward pure multiple compression.
Company profile
Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.
CEOJeffrey Ettinger
SectorConsumer Defensive
IndustryPackaged Foods
Employees20,000
IPO dateMar 17, 1980
Valuation
Forward P/E—
EV/EBITDA15.17
Enterprise value$15.25B
Stock splits
Feb 10, 2016↑ Forward
Every 1 shares became 2
Feb 15, 2011↑ Forward
Every 1 shares became 2
Feb 16, 2000↑ Forward
Every 1 shares became 2
Feb 21, 1990↑ Forward
Every 1 shares became 2
Jun 2, 1987↑ Forward
Every 1 shares became 2
Sep 4, 1985↑ Forward
Every 1 shares became 2
Feb 21, 1980↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth1.29%
Gross margin15.53%▼7.88%vs FY2024
Operating margin6.04%▼33.74%vs FY2024
ROE6.05%▼39.91%vs FY2024
Analyst consensus
RatingHold
Target price$27.25▲33.38%
6
Buy
16
Hold
7
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 28, 2026
Q2 FY26 · EPS est $0.35 · Revenue est $2.96B
View
Dividends
$1.17/shareQuarterlyDividend Achiever · 24yrStretchedHRL pays a dividend with a 5.7% dividend yield, 24 consecutive years of growth, growing at 4.06% annually, covered 0.8× by free cash flow.
Dividend Yield
5.7%
Annual Div / Share
$1.17
5yr CAGR
+4.06%
Doubles every ~17.4yr
Payout Ratio
130.31%
Stretched
Dividend Growth Rate
3yr CAGR
+2.88%
5yr CAGR
+4.06%
10yr CAGR
+7.99%
Dividend Safety
2/10Stretched
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$1.17+1.7%
2025$1.15+2.7%
2024$1.11+4.2%
2023$1.07+5.9%
2022$1.01+5.8%
2021$0.95+7.9%
2020$0.89+11.3%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$57/yr
$5/mo
In 5 yrs
$70/yr+22%
$6/mo
In 10 yrs
$85/yr+49%
$7/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$57/yr $5/mo | $70/yr+22% $6/mo | $85/yr+49% $7/mo |
Yield-on-cost grows from 5.7% → 8.49% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
HRL has raised its dividend for 24 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Risks to Watch
High payout ratio
With 130.31% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.84× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.