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Hormel Foods Corporation — Intrinsic Value & Fair Price

HRL
NYSEConsumer DefensivePackaged FoodsCIK 0000048465hormelfoods.comAbout HRL
Last close · Oct 16, 202620.40+0.21 (+1.04%)
Market cap$11.2B
Model value · DCF · Perpetuity growth · 5y
19.90
Hormel Foods closed at $20.40 — overvalued by 3% vs model.
10.39the model's range57.08

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
10.97 – 37.08
Wall St. target
24.50 17% below
Above model, 1y
9 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
5.74%
#15 · Highest dividend yield
Past 2 years
low 3.37%high 6.09%
Dividends per share, a year at a time
$0.98Oct ’21$1.04Oct ’22$1.10Oct ’23$1.13Oct ’24$1.16Oct ’25$1.17TTM
Dividends / free cash flow, FY2025
118.5%
Raised
24 years in a row
Growth, 5 yrs
3.6% a year
Last change
+0.9% · Jan 2026
Every payment, with ex-dates · latest $0.2925, paid Nov 16, 2026

Research on HRL

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How it is valued

Valued asMature & stable
Revenue declining (~-0% recent)Thin margins (4.0% net margin)Strong dividend yield
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
23.4×
EV / EBITDA
13.3×
FCF yield
4.8%
Dividend yield, TTM
5.74%
Beta
0.29
Cost of capital (WACC)
6.53%
Full financials

Analyst actions

third-party, quoted
10-14Barclays · target28.00
10-07BNP Paribas · target23.00
08-28Stephens · target23.00
04-09JP Morgan · “Neutral” from “Overweight”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

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About Hormel Foods

Hormel Foods Corporation is a prominent global food company that specializes in the creation, preparation, and supply of a diverse array of meat, nut, and other culinary items. Its extensive clientele spans retail outlets, institutional food providers (foodservice), specialty delis, and various commercial enterprises across the United States and internationally. The company's operations are strategically structured into four main divisions: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. Hormel's product portfolio is broad, encompassing numerous perishable goods such as fresh meats, frozen food selections, convenient refrigerated meal options, a variety of sausages, hams, guacamole, and bacon. Additionally, it offers a wide range of non-perishable items, including canned luncheon meats, various nut butters, snack nuts, chili, microwave-ready meals, hashes, stews, tortillas, salsas, and tortilla chips. Beyond these offerings, Hormel Foods is also actively involved in the processing, promotion, and distribution of both branded and unbranded products derived from pork, beef, poultry, and turkey. The company further supplies nutritional food items and supplements, dessert and beverage mixes, and industrial-grade gelatin. Its extensive product line is marketed under numerous widely recognized brand names, including SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler's, Columbus, Gatherings, Wholly, Planters, NUT-rition, Planters Cheez Balls, and Corn Nuts. These products reach consumers through a multi-channel distribution network, utilizing internal sales teams, independent brokers, and various distributors. Founded in 1891 as Geo. A. Hormel & Company, the organization was officially rebranded as Hormel Foods Corporation in January 1995. Its corporate headquarters are located in Austin, Minnesota.

CEO
Jeffrey Ettinger
Headquarters
Austin, MN
Employees
20,000
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.