Stocks analysis

Analysis for HRL

$20.19 +0.38 (+1.92%)
  • 📈 Growth — 12/30
  • 💰 Profitability — 14/20
  • 🏦 Financial Health — 18/20
  • 💵 Valuation — 12/20
  • ⚠️ Risk — 6/10
Overall Score: 60/100

Summary:


📈 Growth & Financial Trajectory

Over the 8 quarters, Hormel's revenues started at $3.138B (2024 Q4) and ended near $2.961B (2026 Q3), a roughly -6% slide. Net income declined from $219.96M to $59.52M, with mid-2025 revenue upticks but softer earnings into 2026. The path shows fluctuations yet a negative trajectory, peaking in 2025 Q4 before pressure in 2026 Q1–Q3.

💰 Margins & Cash Flow

Gross margin sits in the mid-teens, around 15-17%, while operating margins stay single-digit and compress to about 3.7% in 2026 Q3. Cash flow from operating activities was positive across quarters, e.g., $408.6M (2024 Q4 continuing) and $156.7M (2025 Q4). Investing cash flows were generally negative and financing cash flows often negative, yielding modest net cash flow in several periods.

🛡️ Balance Sheet & Liquidity

Liquidity is solid: current ratio near 1.9x in 2026 Q3. Current assets ~$3.5B vs current liabilities ~$1.9B. Total assets ~$13.3B, liabilities ~$5.4B, and equity ~$7.9B; leverage remains moderate with noncurrent liabilities in the multi-billions range, supporting resilience.

⚠️ Key Drivers & Risks

  • Drivers: Branded food demand and pricing/mix; input/cost management.
  • Risks: Margin pressure from inputs and competition; earnings volatility and consumer-staples cyclicality.

📊 Key Financial Fundamentals

Valuation Multiples
Market Cap $11.49B
P/E Ratio 33.54
Forward P/E 16.31
P/S Ratio 0.95
P/B Ratio 1.83
EV / EBITDA 16.22
Profitability & Returns
Gross Margin 15.74%
Operating Margin 4.62%
Net Margin 2.82%
ROE 4.33%
ROIC 3.18%
Financial Health & Liquidity
Current Ratio 1.88
Quick Ratio 0.89
Financial Scale & Cash Flow
Revenue $12.15B
Net Income $0.34B
FCF Yield 6.75%
Free Cash Flow $0.78B
Total Debt To Equity 0.36