Hormel Foods Corporation (HRL) Financial Ratios
30 years of historical data (1996–2025) · Consumer Defensive · Packaged Foods
EV/EBITDA
↓
13.82
↓-16% vs avg
5yr avg: 16.53
30Y Low6.5·High20.1
P/FCF
↓
21.31
↓-14% vs avg
5yr avg: 24.79
30Y Low10.8·High49.6
P/B Ratio
↓
1.44
↓-44% vs avg
5yr avg: 2.55
30Y Low1.7·High4.7
ROE
↓
6.0%
↑-44% vs avg
5yr avg: 10.8%
30Y Low6%·High21%
Debt/EBITDA
↑
2.91
+19% vs avg
5yr avg: 2.44
30Y Low0.2·High2.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HRL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Hormel Foods Corporation trades at 23.8x earnings, roughly in line with its 5-year average of 24.3x, sitting at the 80th percentile of its historical range. Compared to the Consumer Defensive sector median P/E of 19.6x, the stock trades at a premium of 21%. On a free-cash-flow basis, the stock trades at 21.3x P/FCF, 14% below the 5-year average of 24.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.4B | $13.1B | $16.8B | $17.9B | $25.5B | $23.2B | $26.6B | $22.3B | $23.7B | $16.8B | $20.9B |
| Enterprise Value | $13.6B | $15.3B | $18.9B | $20.4B | $27.8B | $25.9B | $26.2B | $21.9B | $23.9B | $16.6B | $20.7B |
| P/E Ratio → | 23.79 | 27.39 | 20.78 | 22.45 | 25.52 | 25.49 | 29.33 | 22.72 | 23.46 | 19.85 | 23.48 |
| P/S Ratio | 0.94 | 1.08 | 1.41 | 1.48 | 2.05 | 2.04 | 2.77 | 2.35 | 2.49 | 1.83 | 2.19 |
| P/B Ratio | 1.44 | 1.66 | 2.09 | 2.31 | 3.39 | 3.32 | 4.14 | 3.76 | 4.23 | 3.40 | 4.69 |
| P/FCF | 21.31 | 24.55 | 16.60 | 22.98 | 29.78 | 30.03 | 34.99 | 33.45 | 27.54 | 20.67 | 28.09 |
| P/OCF | 13.47 | 15.52 | 13.24 | 17.05 | 22.49 | 23.13 | 23.59 | 24.15 | 19.11 | 16.25 | 21.04 |
P/E links to full P/E history page with 30-year chart
HRL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Hormel Foods Corporation's enterprise value stands at 13.8x EBITDA, 16% below its 5-year average of 16.5x. The Consumer Defensive sector median is 11.5x, placing the stock at a 20% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.26 | 1.58 | 1.69 | 2.23 | 2.27 | 2.73 | 2.30 | 2.50 | 1.81 | 2.18 |
| EV / EBITDA | 13.82 | 15.58 | 14.24 | 15.42 | 17.98 | 19.43 | 20.06 | 16.06 | 17.81 | 11.80 | 14.23 |
| EV / EBIT | 18.89 | 20.64 | 16.92 | 18.81 | 20.77 | 22.13 | 23.07 | 17.81 | 19.79 | 12.86 | 15.58 |
| EV / FCF | — | 28.64 | 18.69 | 26.29 | 32.48 | 33.54 | 34.45 | 32.81 | 27.73 | 20.43 | 27.87 |
HRL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Hormel Foods Corporation earns an operating margin of 5.9%, above the Consumer Defensive sector average of 1.5%. Operating margins have compressed from 8.9% to 5.9% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 6.0% is modest, trailing the sector median of 7.7%. ROIC of 5.3% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.6% | 15.6% | 17.0% | 16.5% | 17.4% | 16.9% | 19.0% | 19.8% | 20.7% | 21.8% | 22.7% |
| Operating Margin | 5.9% | 5.9% | 9.0% | 8.9% | 10.5% | 9.9% | 11.5% | 12.6% | 12.4% | 13.9% | 13.9% |
| Net Profit Margin | 4.0% | 4.0% | 6.8% | 6.6% | 8.0% | 8.0% | 9.5% | 10.3% | 10.6% | 9.2% | 9.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.0% | 6.0% | 10.2% | 10.4% | 13.8% | 13.6% | 14.7% | 17.0% | 19.2% | 18.0% | 21.1% |
| ROA | 3.6% | 3.6% | 6.0% | 5.9% | 7.7% | 8.0% | 10.1% | 12.0% | 13.4% | 12.7% | 14.2% |
| ROIC | 5.3% | 5.3% | 7.8% | 8.0% | 10.1% | 10.7% | 14.3% | 15.9% | 16.8% | 21.2% | 23.7% |
| ROCE | 6.0% | 6.0% | 9.2% | 9.3% | 11.4% | 11.4% | 14.3% | 17.1% | 18.3% | 22.7% | 25.9% |
HRL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Hormel Foods Corporation carries a Debt/EBITDA ratio of 2.9x, which is moderately leveraged (14% below the sector average of 3.4x). Net debt stands at $2.2B ($2.9B total debt minus $671M cash). Interest coverage of 9.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.36 | 0.43 | 0.44 | 0.48 | 0.20 | 0.04 | 0.11 | 0.05 | 0.06 |
| Debt / EBITDA | 2.91 | 2.91 | 2.16 | 2.50 | 2.13 | 2.50 | 1.00 | 0.18 | 0.47 | 0.18 | 0.17 |
| Net Debt / Equity | — | 0.28 | 0.26 | 0.33 | 0.31 | 0.39 | -0.06 | -0.07 | 0.03 | -0.04 | -0.04 |
| Net Debt / EBITDA | 2.23 | 2.23 | 1.60 | 1.94 | 1.50 | 2.03 | -0.31 | -0.31 | 0.12 | -0.14 | -0.11 |
| Debt / FCF | — | 4.09 | 2.10 | 3.31 | 2.70 | 3.51 | -0.54 | -0.63 | 0.19 | -0.24 | -0.22 |
| Interest Coverage | 9.21 | 9.21 | 13.20 | 14.61 | 21.00 | 25.92 | 52.22 | 66.20 | 44.54 | 100.67 | 102.86 |
HRL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Hormel Foods Corporation's current ratio of 2.47x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.20x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.43x to 2.47x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.47 | 2.47 | 2.32 | 1.43 | 2.47 | 2.08 | 2.38 | 2.14 | 1.80 | 1.92 | 1.93 |
| Quick Ratio | 1.20 | 1.20 | 1.19 | 0.70 | 1.30 | 1.12 | 1.67 | 1.19 | 0.95 | 1.04 | 0.99 |
| Cash Ratio | 0.51 | 0.51 | 0.55 | 0.33 | 0.68 | 0.45 | 1.15 | 0.62 | 0.40 | 0.42 | 0.39 |
| Asset Turnover | — | 0.90 | 0.89 | 0.90 | 0.94 | 0.90 | 0.97 | 1.17 | 1.17 | 1.31 | 1.49 |
| Inventory Turnover | 5.85 | 5.85 | 6.28 | 6.02 | 6.00 | 6.91 | 7.25 | 7.30 | 7.85 | 7.79 | 7.47 |
| Days Sales Outstanding | — | 26.58 | 26.59 | 24.85 | 25.63 | 28.98 | 28.26 | 22.84 | 23.11 | 25.51 | 23.36 |
HRL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Hormel Foods Corporation returns 5.6% to shareholders annually primarily through dividends. The payout ratio exceeds 100% at 132.4%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 4.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.6% | 4.8% | 3.7% | 3.3% | 2.2% | 2.3% | 1.8% | 2.0% | 1.6% | 2.1% | 1.4% |
| Payout Ratio | 132.4% | 132.4% | 76.4% | 74.7% | 55.8% | 57.6% | 53.7% | 44.7% | 38.3% | 40.9% | 33.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 3.7% | 4.8% | 4.5% | 3.9% | 3.9% | 3.4% | 4.4% | 4.3% | 5.0% | 4.3% |
| FCF Yield | 4.7% | 4.1% | 6.0% | 4.4% | 3.4% | 3.3% | 2.9% | 3.0% | 3.6% | 4.8% | 3.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.1% | 0.0% | 0.8% | 0.2% | 0.6% | 0.4% |
| Total Shareholder Yield | 5.6% | 4.8% | 3.7% | 3.4% | 2.2% | 2.3% | 1.9% | 2.7% | 1.8% | 2.6% | 1.8% |
| Shares Outstanding | — | $550M | $549M | $549M | $550M | $548M | $547M | $545M | $544M | $539M | $542M |
Peer Comparison
Compare HRL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HRLYou | $11B | 23.8 | 13.8 | 21.3 | 15.6% | 5.9% | 6.0% | 5.3% | 2.9 |
 TSN | $24B | 50.1 | 11.4 | 20.6 | 6.5% | 2.6% | 2.6% | 4.1% | 3.2 |
 SFD | $10B | 10.4 | 6.9 | 14.3 | 13.5% | 8.3% | 14.0% | 12.2% | 1.5 |
 PPC | $7B | 6.9 | 4.9 | 11.3 | 12.7% | 8.7% | 27.2% | 20.0% | 1.6 |
 LW | $6B | 17.3 | 9.4 | 26.1 | 21.7% | 10.3% | 20.6% | 8.6% | 3.9 |
 CPB | $6B | 10.4 | 7.5 | 8.9 | 30.4% | 13.2% | 15.6% | 9.1% | 4.0 |
 CAG | $7B | 5.8 | 8.5 | 5.2 | 25.9% | 11.8% | 12.9% | 6.0% | 4.7 |
 SJM | $10B | -8.4 | — | 12.6 | 38.8% | -7.7% | -17.9% | -3.4% | — |
 MKC | $12B | 16.5 | 12.2 | 16.6 | 37.9% | 16.0% | 14.2% | 8.5% | 3.0 |
 MDLZ | $79B | 32.7 | 20.0 | 24.6 | 28.0% | 9.4% | 9.3% | 6.0% | 4.5 |
 GIS | $19B | 8.6 | 8.8 | 8.2 | 34.6% | 17.0% | 24.3% | 10.6% | 4.0 |
| Consumer Defensive Median | — | 19.6 | 11.5 | 14.8 | 40.2% | 1.5% | 7.7% | 5.5% | 3.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full HRL Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
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Start ComparisonHRL — Frequently Asked Questions
Quick answers to the most common questions about buying HRL stock.
What is Hormel Foods Corporation's P/E ratio?
Hormel Foods Corporation's current P/E ratio is 23.8x. The historical average is 20.3x. This places it at the 80th percentile of its historical range.
What is Hormel Foods Corporation's EV/EBITDA?
Hormel Foods Corporation's current EV/EBITDA is 13.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
What is Hormel Foods Corporation's ROE?
Hormel Foods Corporation's return on equity (ROE) is 6.0%. The historical average is 16.1%.
Is HRL stock overvalued?
Based on historical data, Hormel Foods Corporation is trading at a P/E of 23.8x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Hormel Foods Corporation's dividend yield?
Hormel Foods Corporation's current dividend yield is 5.56% with a payout ratio of 132.4%.
What are Hormel Foods Corporation's profit margins?
Hormel Foods Corporation has 15.6% gross margin and 5.9% operating margin.
How much debt does Hormel Foods Corporation have?
Hormel Foods Corporation's Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.