---
title: Hormel Foods (HRL) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/hrl
ticker: HRL
as_of: 2026-10-17
sector: Consumer Defensive
industry: Packaged Foods
---
# Hormel Foods (HRL)

Hormel Foods (HRL) closed at $20.40 on Oct 16, 2026, overvalued by 3% vs its model value of $19.90 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $20.40 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $19.90 |
| Price vs model | overvalued by 3% vs model |
| Range of that model | $10.39 – $57.08 |
| Market value | $11.2B |
| P/E (fiscal 2025) | 23.4 |
| Net margin (fiscal 2025) | 4.0% |
| Free cash flow (fiscal 2025) | $534.3M |
| Dividend yield (trailing twelve months) | 5.74% |
| Beta | 0.29 |
| Cost of capital (WACC) | 6.53% |
| Business classification | Dividend Payer (Revenue declining (~-0% recent), Thin margins (4.0% net margin), Strong dividend yield) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Highest dividend yield | #15 | 5.74% | https://sweetvaluelab.com/lists/highest-dividend-yield |
| Near 52-week lows | #49 | +6.3% | https://sweetvaluelab.com/lists/near-52-week-lows |
| Insider buying | #34 | $201,000 | https://sweetvaluelab.com/lists/insider-buying |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 5.74% |
| Dividends per share, last 12 months | $1.17 |
| Dividends / free cash flow (fiscal 2025) | 118.5% |
| Raised | 24 years in a row |
| Growth over 5 years | 3.6% a year |
| Latest payment | $0.2925, ex-date Oct 13, 2026, paid Nov 16, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Oct 15, 2021 | $0.98 |
| To Oct 14, 2022 | $1.04 |
| To Oct 13, 2023 | $1.10 |
| To Oct 15, 2024 | $1.13 |
| To Oct 14, 2025 | $1.16 |
| Trailing twelve months (to Oct 13, 2026) | $1.17 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $19.90 | $10.39 | $57.08 |
| DCF · Perpetuity growth · 10y | cross check | $19.88 | $10.85 | $55.59 |
| DCF · EBITDA exit · 5y | cross check | $12.97 | $6.19 | $21.02 |
| DCF · EBITDA exit · 10y | cross check | $14.28 | $7.74 | $23.19 |
| P/E · peers | cross check | $11.75 | $9.00 | $14.50 |
| P/E · own history | cross check | $27.42 | $24.98 | $32.09 |
| PEG | sanity check | $37.08 | $37.08 | $37.08 |
| EV/EBITDA · peers | cross check | $10.97 | $6.98 | $14.95 |
| EV/Revenue · peers | cross check | $23.51 | $22.81 | $37.07 |
| Earnings power value | cross check | $19.95 | $15.48 | $27.09 |
| Dividend discount | cross check | $27.95 | $18.00 | $52.97 |

## Insider activity (SEC Form 4)

Past 90 days: 1 open-market buy ($201,000) and 0 open-market sales ($0); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 13, 2026 | Bhumbla Ash | Executive VP & CFO | Grant / award | 62,468 | $0 |
| Oct 5, 2026 | Newlands William A | Director, Other | Open-market buy | 10,000 | $201,000 |
| Oct 3, 2026 | Myers Kevin L | SENIOR VICE PRESIDENT | Tax withholding | 864 | $17,496 |
| Sep 30, 2026 | Policinski Christopher J. | Director | Grant / award | 2,830.37 | $56,437.6 |
| Sep 30, 2026 | Schoneman Debbra L. | Director | Grant / award | 1,513.92 | $30,187.6 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 30, 2026 | 8-K | 1.01 Entry into a Material Agreement; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm |
| Aug 27, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm |
| Aug 27, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hrl-20260827.htm |
| Aug 24, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/48465/000004846526000049/hrl-20260824.htm |
| Jul 28, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/48465/000004846526000047/hrl-20260727.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Mairs & Power | 2026-06-30 | 3,398,047 | $84.3M |
| Gates | 2026-06-30 | 2,085,290 | $51.8M |
| Bridgewater | 2026-06-30 | 42,159 | $1.0M |
| Thomas Russo | 2026-06-30 | 18,500 | $459,170 |

4 tracked managers in all.

## About

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,…

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Source: https://sweetvaluelab.com/stocks/hrl (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.