Consumer Staples · Packaged Foods & Meats · US stock · price as of 22 Oct 2026
Key indicators
Price
$21.36
52-week range
$18.96 – $26.60
Market cap
$11.8B
P/E (trailing)
34.3×
EV / EBITDA
16.3×
Free-cash-flow yield
6.6%
Dividend yield
5.5%
Revenue (last 12 months)
$12.1B
Revenue growth (3y a year)
−1.0%
Operating margin
4.7%
Return on invested capital
4.1%
Net debt / EBITDA
2.3×
Fair value
Fair value (average of valid models)$21.96 middle half of models $21 – $27
Versus priceFair+3% to fair value
P/E multiple
$20.52
P/B multiple
$28.16
P/S multiple
$27.25
EV/EBITDA multiple
$21.82
EV/EBIT multiple
$19.59
EV/revenue multiple
$27.58
10-year DCF, EBITDA exit
$20.85
5-year DCF, EBITDA exit
$21.15
10-year DCF, revenue exit
$21.34
5-year DCF, revenue exit
$22.50
10-year DCF, growth exit
$14.53
5-year DCF, growth exit
$13.68
Earnings power value
$26.58
Model uncertainty
Medium
X-Ray Score
42/ 100 · High confidence · ahead of 24% of sector peers
Valuation53
Growth26
Profitability37
Financial health45
Dividends56
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Hormel Foods is an American packaged food company that processes and markets meat and other food products, including the Spam, Skippy, Planters, Applegate and Jennie-O brands. Its customers are grocery chains, restaurants, institutional food purchasers and international distributors. The business is organised around retail, foodservice and international operations, with a mix of refrigerated protein products, shelf-stable foods and snacks.
Hormel earns money by supplying these branded and unbranded foods to retailers and foodservice customers. Revenue is $12.1 billion over the last twelve months, and revenue growth over three years is -1.0% a year, so sales have drifted slightly lower. The operating margin is 4.7%, and the business earns a profit of 4% on the capital invested in it. It carries net debt of 2.3 times EBITDA, and the dividend yield is 5.5%.
StocksXray gives Hormel Foods Corp an X-Ray Score of 42 out of 100 (high confidence), ahead of 24% of the S&P 500 stocks in its sector. Its strongest lens is dividends (56) and its weakest is growth (26).
Our fair value (the average of the valid models) is $21.96 (range $20.52 to $26.58). At $21.36 the stock trades 3% below that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Hormel Foods Corp (HRL)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$35.35
$40.07
$27.55
$28.24
$22.58
$21.36
Market cap
$19.4B
$22.0B
$15.1B
$15.5B
$12.4B
$11.8B
P/E
21.3×
22.0×
19.0×
19.2×
26.0×
34.3×
EV / revenue
1.9×
2.0×
1.5×
1.5×
1.2×
1.1×
EV / EBITDA
16.6×
15.7×
13.3×
13.3×
14.9×
16.3×
Price / free cash flow
25.2×
25.7×
19.4×
15.3×
23.3×
15.1×
Free-cash-flow yield
4.0%
3.9%
5.1%
6.5%
4.3%
6.6%
Price / book
2.8×
2.9×
2.0×
1.9×
1.6×
1.5×
Dividend yield
2.77%
2.60%
3.99%
4.00%
5.14%
5.48%
Fundamentals checklist ● 3 Good · ● 6 Average · ● 7 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−5.6%Average
Free-cash-flow yield6.6%Good
Risk models
Altman Z score4.4×Good
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)−21.8%Bad
Free-cash-flow growth (3y)−14.5%Bad
Revenue growth (3y)−1.0%Average
Growth consistency50%Average
Balance sheet
Current ratio1.9×Good
Net debt / EBITDA2.3×Average
Interest cover7.3×Bad
Valuation
Fair value vs price1.0×Average
EBIT / EV yield4.2%Average
Profitability
Return on invested capital4.1%Bad
Operating margin4.7%Bad
Gross profitability14.3%Bad
XStocksXray
Hormel Foods Corp (HRL)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
11,386
12,459
12,110
11,921
12,106
12,147
Gross profit
1,928
2,165
2,000
2,022
1,892
1,904
Operating income
1,123
1,313
1,072
1,068
719
574
Net income
909
1,000
794
805
478
343
Diluted EPS ($)
1.66
1.82
1.45
1.47
0.87
0.62
Free cash flow
770
856
778
1,010
534
781
Gross margin
16.9%
17.4%
16.5%
17.0%
15.6%
15.7%
Operating margin
9.9%
10.5%
8.9%
9.0%
5.9%
4.7%
Net margin
8.0%
8.0%
6.6%
6.8%
4.0%
2.8%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
12,696
13,307
13,449
13,435
13,393
13,292
Cash
614
982
737
742
671
840
Total debt
3,324
3,299
3,309
2,859
2,857
2,855
Equity
6,973
7,535
7,735
7,993
7,901
7,843
Dividend per share ($)
0.98
1.04
1.10
1.13
1.16
1.17
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
