Hormel Foods Corporation (HRL) Stock Analysis — Fair Value, Risk & Moat Rating

Hormel Foods Corporation (HRL) stock price is $21.43 as of the latest market close, traded on the NYSE exchange.

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. It provides various perishable products, including resh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration; and shelf-stable products, such as canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration.

Hormel Foods Corporation has a market capitalization of $11.79B, classifying it as a large-cap stock in the Consumer Defensive sector.

Hormel Foods Corporation operates in the Consumer Defensive sector, specifically within the Packaged Foods industry. It trades on the NYSE under the ticker symbol HRL.

Based on our valuation model, Hormel Foods Corporation trades 9.9% below our fair value estimate — potentially undervalued.

• FairValueLabs Fair Value: $23.78
• Current Price: $21.43
• Valuation Zone: Watch Zone

Based on 8 Wall Street analysts, the consensus price target for Hormel Foods Corporation is $26.75, implying upside of 24.8% from the current price.

• Analyst High Target: $30.00
• Analyst Low Target: $23.00

Note: Analyst targets are shown for reference and are not used in our valuation model.

Here are the analyst consensus growth estimates for Hormel Foods Corporation:

• Revenue growth (current year est.): 1.6%
• EPS growth (current year est.): 7.3%
• Revenue growth (next year est.): 1.6%
• EPS growth (next year est.): 6.9%

The price-to-earnings ratio measures how much investors pay per dollar of earnings:

• Trailing P/E (last 12 months): 24.1x
• Forward P/E (next 12 months est.): 13.6x
• FairValueLabs Fair P/E: 20.5x

Hormel Foods Corporation has a beta of 0.36, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.

Hormel Foods Corporation's balance sheet shows:

• Total Cash: $574.3M
• Total Debt: $250.0M
• Net Cash Position: $324.3M

A positive net cash position means the company holds more cash than debt, reducing financial risk.

Hormel Foods Corporation generated $381.5M in trailing twelve-month free cash flow (from $885.3M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.

Yes, Hormel Foods Corporation pays a regular dividend. Here are the key metrics:

• Dividend Yield: 5.5%
• Payout Ratio: 130.6%
• Consecutive Years Paid: 40
• 5-Year Dividend Growth: -9.8%
• FairValueLabs Safety Grade: B

Hormel Foods Corporation's Altman Z-Score is 3.35, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.

Hormel Foods Corporation scores 3.0/5 stars (Narrow moat) in our moat analysis:

• ROIC Stability: 3/5
• Gross Margin Trend: 3/5
• Switching Costs: 3/5

A score above 3.5 suggests meaningful pricing power and a defensible market position.

Hormel Foods Corporation's return on equity is 6.1%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.

HRL shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:

1. Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
2. Search for ticker symbol HRL
3. Place a market or limit order for your desired number of shares

This is not investment advice. Always do your own research before buying any stock.

FairValueLabs classifies Hormel Foods Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.

The current CEO of Hormel Foods Corporation is Mr. Jeffrey M. Ettinger.

Earnings per share measures the company's profit allocated to each outstanding share:

• Trailing EPS (last 12 months): $0.89
• Forward EPS (next 12 months est.): $1.57
• Analyst consensus EPS (this year): $1.47
• Analyst consensus EPS (next year): $1.57