Hormel Foods faces a challenging outlook as structural margin compression, with gross margins falling to 15.9% in the latest quarter, appears to be eroding profitability faster than pricing actions can offset input costs. The company's conservative balance she...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has stalled, declining 2.4% year-over-year in the latest quarter, while gross margin compression to 15.9% has driven a 66.7% year-over-year decline in diluted EPS.
Hormel Foods Corporation is viewed positively due to its resilient brand portfolio and market leadership in the food industry.
HRL's trailing and forward P/E ratios of 18.00 and 15.90 respectively indicate an attractive valuation for investors.
The Hormel Foundation holds a significant 46.62% stake, indicating strong institutional confidence in the company.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 27, 2026 | $0.37+4.5% vs $0.35 | $3.0B-2.4% vs $3.0B |
Q2 2026 May 28, 2026 | $0.40+12.9% vs $0.35 | $3.0B+0.3% vs $3.0B |
Q1 2026 Feb 26, 2026 | $0.34+6.3% vs $0.32 | $3.0B-1.3% vs $3.1B |
Q4 2025 Dec 4, 2025 | $0.32+6.1% vs $0.30 | $3.2B-1.2% vs $3.2B |
While investors pile into pricey AI darlings, a handful of battle-tested Dividend Kings have quietly slipped to levels that scream value, and Wall Street analysts see serious upside ahead for 2027.
Sixty years of uninterrupted dividend raises sounds like a triumph, but a closer look at Hormel's latest increase reveals a streak that is surviving on thinner and thinner margins with each passing year.
A 10-year Treasury yield of 5% is extremely attractive if you are worried about a bear market. I'd prefer to own this Dividend King S&P 500 stock with a 5.6% yield, even though its business is struggling today.
Dividend Kings have a 50+ year track record of increasing dividends, showcasing resilience through economic challenges. I rank the Dividend Kings using my 9F Quality Scores, blending qualitative and quantitative factors for a robust, investment-grade assessment. ADP stands out as the best total-return candidate. It is undervalued, high-quality, and offering a strong projected dividend growth rate and Adjusted Chowder Number.
Benchmark HRL against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Hormel Foods Corporation (HRL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $20.34 | $11.19B | 23.38 | 1.55% | 3.95% | 6.01% | 5.66% | |
| $51.82 | $18.37B | 38.10 | 2.12% | 1.03% | 3.15% | — | |
| $19.56 | $7.7B | 7.79 | — | 6.85% | 14.97% | — | |
| $28.98 | $6.89B | 6.38 | 3.46% | 2.96% | 14.8% | — | |
| $46.36 | $6.37B | 22.29 | 2.5% | 5.21% | 19.38% | — | |
| $20.21 | $6.03B | 10.05 | 6.4% | 4.14% | 9.98% | — |
Hormel Foods Corporation (HRL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Hormel Foods Corporation (HRL) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 27, 2026·SEC
Aug 24, 2026·SEC
May 28, 2026·SEC
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Hormel Foods Corporation (HRL) stock FAQ — growth, dividends, profitability & financials explained
Hormel Foods Corporation (HRL) reported $12.15B in revenue for fiscal year 2025. This represents a 292% increase from $3.10B in 1996.
Hormel Foods Corporation (HRL) grew revenue by 1.6% over the past year. Growth has been modest.
Yes, Hormel Foods Corporation (HRL) is profitable, generating $342.7M in net income for fiscal year 2025 (4.0% net margin).
Yes, Hormel Foods Corporation (HRL) pays a dividend with a yield of 5.66%. This makes it attractive for income-focused investors.
Hormel Foods Corporation (HRL) has a return on equity (ROE) of 6.0%. This is below average, suggesting room for improvement.
Hormel Foods Corporation (HRL) generated $780.9M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
