Hormel Foods

HRL · NYSE · Consumer Staples · Financials, fiscal 2016 to 2025

HRL · Last close · October 26, 2026

$20.95

Hormel Foods' revenue rose 1.6% to $12.1 billion in fiscal 2025. Its operating margin was 5.9%, down from 9.0% a year earlier. Free cash flow was $534 million, down 47.1%. It paid out $633 million in dividends and buybacks, 118% of free cash flow. The diluted share count rose 0.3%.

HORMEL FOODS CORPORATION Latest fiscal year ended October 26, 2025 10-K filed December 5, 2025 · 0000048465-25-000059 Updated October 9, 2026

Revenue

$12.1B

1.6%

Operating margin

5.9%

3.0 pts

Net income

$478M

40.6%

Free cash flow

$534M

47.1%

Return on capital

5.1%

3.0 pts

Market cap

$11.5B

Oct 26 close

P/E

33.3x

On $0.63 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Hormel Foods does

Hormel Foods makes and sells packaged and processed food. It started as a meat processor in 1891 in Austin, Minnesota, and has grown through its own brands and acquisitions into a global branded food company with more than $12 billion in annual revenue. Its brands include Planters, SPAM, Jennie-O, Skippy, Applegate, Wholly and Hormel Black Label.

It reports three segments. Retail sells through grocery stores, mass merchants, club stores, discount chains and e-commerce providers in the U.S., and includes its MegaMex Foods joint venture. Foodservice sells to distributors and operators such as restaurants, hospitals, schools and convenience stores. International sells through retail and foodservice channels abroad and includes operations in China and Brazil. Its largest customer, Walmart, accounted for 15.6 percent of gross sales less returns and allowances in fiscal 2025.

Hormel says its markets are highly competitive and that it competes by meeting customer and consumer preferences and offering new products. At the end of fiscal 2025 it had approximately 20,000 active employees, with over 90 percent in the U.S. About 20 percent are covered by collective bargaining agreements.

Its biggest risks, as it describes them

Reliance on suppliers, distributors and other outside parties to supply key inputs and deliver products.
Food safety problems that come with making food for people to eat.
Swings in commodity prices and in the supply of raw materials.
Shoppers switching to cheaper generic or value products in some categories.
Ongoing government inspection of its plants and products, and the effect of losing inspectors.

From Hormel Foods's annual report on Form 10-K, filed December 5, 2025, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share fell 6.8% a year and net income 6.7% a year, as new shares raised the share count by 1% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Hormel Foods yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Hormel Foods says to expect

Fiscal 2026: net salesExpects net sales to be in the range of $12.1 billion to $12.2 billion, reflecting organic net sales 1 growth of 1% to 2%
Fiscal 2026: diluted earnings per shareUpdates diluted earnings per share guidance to be in the range of $1.06 to $1.12
Fiscal 2026: adjusted diluted EPSRaises adjusted diluted earnings per share 1 guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 27, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Hormel Foods' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Hormel Foods' fiscal 2025 free cash flow of $534M, net cash of −$2.2B at October 26, 2025 and 550 million diluted shares, from its filings. The scenarios are fitted to Hormel Foods: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -1.0% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 8%: 7% for a stable business (Packaged Foods & Meats), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at October 26, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Hormel Foods's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 9% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 8% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 7% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $20.95
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Hormel Foods' earnings per share of $0.63 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 33.3×, the middle of Hormel Foods' own P/E today, its peers' median and its sector's median (Hormel Foods' own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 9%, 8% and 7%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to July 26, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Campbell's, J.M. Smucker.

Earnings growth in the years ahead (% a year) Starts at Hormel Foods' revenue growth over the last 3 years, -1.0% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $20.95
Value at this multiple, against the last close: —
Hormel Foods' P/E at the last close: 33.3×

Company	Last close	Earnings per share	P/E today
J.M. SmuckerSJM	$128.64	$2.14	60.1×
Hormel FoodsHRL	$20.95	$0.63	33.3×
Campbell'sCPB	$20.63	$1.31	15.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	635	998	753	767	704
Debt incl. finance leases	3,324	3,299	3,309	2,859	2,857
Net debt (negative means net cash)	2,689	2,301	2,556	2,092	2,154
Net debt to EBITDA	2.0x	1.5x	1.9x	1.6x	2.2x
Debt to equity	0.5x	0.4x	0.4x	0.4x	0.4x
Interest coverage	25.9x	21.0x	14.6x	13.2x	9.2x
Current ratio	2.1x	2.5x	1.4x	2.3x	2.5x
Quick ratio	1.1x	1.3x	0.7x	1.2x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $201,000 of Hormel Foods shares on the open market, and 2 insiders sold $816,702.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 5, 2026	William A NewlandsDirector	Bought	10,000	$20.10	$201,000	Form 4
Jul 8, 2026	Gary C. BhojwaniDirector	Sold	20,200	$24.51	$495,102	Form 4
Dec 11, 2025	Elsa A MuranoDirector	Sold	13,400	$24.00	$321,600	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Fail	Pass	Pass
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Fail	Pass	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	5 of 9	8 of 9	5 of 9
Accruals ratio	−1.9%	−3.4%	−2.7%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Hormel Foods side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Hormel Foods	FY25	1.6%	5.9%	4.4%	5.1%	2.2x	5
Hershey	FY25	4.4%	12.3%	15.6%	11.5%	2.3x	—	Compare
Conagra Brands	FY26	−2.9%	−14.4%	8.7%	−8.3%	—	5	Compare
Campbell's	FY26	−5.0%	8.7%	7.0%	6.2%	5.3x	5	Compare
J.M. Smucker	FY26	3.7%	4.0%	12.8%	2.2%	7.5x	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	9,523	9,168	9,546	9,497	9,608	11,386	12,459	12,110	11,921	12,106
Revenue growth	2.8%	−3.7%	4.1%	−0.5%	1.2%	18.5%	9.4%	−2.8%	−1.6%	1.6%
Gross profit	2,158	1,997	1,980	1,885	1,826	1,928	2,165	2,000	2,022	1,892
Research and development	35	34	34	32	32	34	35	34	36	35
Operating income	1,324	1,277	1,180	1,196	1,100	1,123	1,313	1,072	1,068	719
Net income	890	847	1,012	979	908	909	1,000	794	805	478
Diluted EPS (US$)	1.64	1.57	1.86	1.80	1.66	1.66	1.82	1.45	1.47	0.87
Diluted shares (millions)	542	539	544	545	547	548	550	549	549	550
Cash flow
Cash from operations	1,040	1,034	1,242	923	1,128	1,002	1,135	1,048	1,267	845
Capital expenditure	256	221	390	294	368	232	279	270	256	311
Free cash flow	784	813	852	629	761	770	856	778	1,010	534
Dividends paid	296	346	388	437	487	523	558	593	615	633
Share buybacks	88	94	47	174	12	20	0	12	0	0
Acquisitions	281	520	858	0	271	3,396	0	0	0	0
Stock-based compensation	18	16	21	20	22	25	25	24	23	26
Balance sheet at fiscal year end
Cash and short-term investments	415	444	459	688	1,732	635	998	753	767	704
Debt incl. finance leases	—	250	625	250	1,304	3,324	3,299	3,309	2,859	2,857
Total assets	6,976	6,976	8,142	8,109	9,908	12,696	13,307	13,449	13,435	13,393
Total liabilities	1,919	2,036	2,538	2,184	3,478	5,718	5,767	5,710	5,431	5,477
Shareholders' equity	4,448	4,936	5,601	5,922	6,426	6,973	7,535	7,735	7,993	7,901
Margins and ratios
Gross margin	22.7%	21.8%	20.7%	19.8%	19.0%	16.9%	17.4%	16.5%	17.0%	15.6%
Operating margin	13.9%	13.9%	12.4%	12.6%	11.4%	9.9%	10.5%	8.8%	9.0%	5.9%
Net margin	9.3%	9.2%	10.6%	10.3%	9.4%	8.0%	8.0%	6.5%	6.8%	4.0%
Free cash flow margin	8.2%	8.9%	8.9%	6.6%	7.9%	6.8%	6.9%	6.4%	8.5%	4.4%
Return on capital	—	—	19.2%	17.2%	15.6%	11.6%	10.5%	8.3%	8.1%	5.1%
Return on equity	21.1%	18.1%	19.2%	17.0%	14.7%	13.6%	13.8%	10.4%	10.2%	6.0%
Return on assets	13.6%	12.1%	13.4%	12.1%	10.1%	8.0%	7.7%	5.9%	6.0%	3.6%
Net debt to EBITDA	—	−0.1x	0.1x	−0.3x	−0.3x	2.0x	1.5x	1.9x	1.6x	2.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Hormel Foods' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Hormel Foods.