Fact based stock research
Hormel Foods (NYSE:HRL)

US4404521001

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Hormel Foods stock research in summary

hormelfoods.com

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Hormel Foods (Packaged Foods & Meats, USA) shares have much better financial characteristics than comparable stocks. Shares of Hormel Foods are a good value (attractively priced) with a consolidated Value Rank of 66 (better than 66% of alternatives), are safely financed (Safety Rank of 79, which means low debt burdens), but show below-average growth (Growth Rank of 43). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Hormel Foods's financial characteristics. As the company Hormel Foods's key financial metrics exhibit good value (Obermatt Value Rank of 66) but low growth (Obermatt Growth Rank of 43) while being safely financed (Obermatt Safety Rank of 79), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 66% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	66
Growth Rank	43
Safety Rank	79
Combined Rank	81

Country	USA
Industry	Packaged Foods & Meats
Index	Energy Efficient, Human Rights, S&P US Consumer, S&P US Food & Beverage, S&P 500
Size class	Large

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hormel Foods

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	39	58	48	66
GROWTH
GROWTH	39	17	57	43
SAFETY
SAFETY	76	67	76	79
SENTIMENT
SENTIMENT	36	6	53	^new
360° VIEW
360° VIEW	45	19	67	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 27-Apr-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Hormel Foods is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	39	58	48	66
GROWTH
GROWTH	39	17	57	43
SAFETY
SAFETY	76	67	76	79
COMBINED
COMBINED	53	42	62	81

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Hormel Foods the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 66 (better than 66% compared with alternatives), Hormel Foods shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hormel Foods. Expected dividend yields are higher than for 84% of comparable companies (a Dividend Yield rank of 84), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 67, which means that the stock price is lower compared with invested capital than for 67% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 47 which means that the stock price compared with what market professionals expect for future profits is higher than for 53% of comparable companies, indicating a low value concerning Hormel Foods's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Hormel Foods with a rank of 42. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 58% of comparable companies, indicating a low value concerning Hormel Foods's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 66, is a buy recommendation based on Hormel Foods's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Hormel Foods may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	33	41	38	47
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	35	40	40	42
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	55	54	67
DIVIDEND YIELD
DIVIDEND YIELD	64	84	76	84
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	58	48	66

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hormel Foods; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Hormel Foods shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Hormel Foods. While Profit Growth has a good rank of 52, as professionals currently expect the company to grow its profits more than 52% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 42, which means that currently professionals expect the company to grow less than 58% of its competitors, while Capital Growth has a rank of 47 and Stock Returns have been below market median, with a rank of 43 (57% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	24	34	48	42
PROFIT GROWTH
PROFIT GROWTH	60	29	57	52
CAPITAL GROWTH
CAPITAL GROWTH	37	54	51	47
STOCK RETURNS
STOCK RETURNS	57	19	59	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	39	17	57	43

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hormel Foods.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2025, the company Hormel Foods has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hormel Foods is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Hormel Foods. Leverage is at 70, meaning the company has a below-average debt-to-equity ratio. It has less debt than 70% of its competitors. Refinancing is at a rank of 65, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), Hormel Foods has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Hormel Foods but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	60	64	67	70
REFINANCING
REFINANCING	37	34	53	65
LIQUIDITY
LIQUIDITY	92	86	78	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	67	76	79

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hormel Foods and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	7	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	25	4	28	^new
PRO HOLDINGS
PRO HOLDINGS	92	30	78	^new
MARKET PULSE
MARKET PULSE	50	47	76	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	36	6	53	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hormel Foods.
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