Hormel Foods Corporation (HRL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+28.3%

$27.68

vs $21.59 price

Levered DCF

$26.95

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.29

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.29×	21.05×	22.11×	25.24×	25.57×	28.81×	22.34×	22.85×
P/B	1.65×	2.12×	2.26×	3.36×	3.33×	4.08×	3.69×	4.14×
P/S	1.08×	1.42×	1.45×	2.03×	2.04×	2.73×	2.3×	2.43×
EV / EBITDA	15.17×	13.88×	14.99×	17.23×	18.56×	19.22×	15.39×	17.03×
Gross margin	15.6%	17.0%	16.5%	17.4%	16.9%	19.0%	19.8%	20.7%
Operating margin	5.9%	9.0%	8.9%	10.5%	9.9%	11.5%	12.6%	12.4%
Net margin	4.0%	6.8%	6.6%	8.0%	8.0%	9.5%	10.3%	10.6%
Current ratio	2.47×	2.32×	1.43×	2.47×	2.08×	2.38×	2.14×	1.8×
Debt / equity	0.36×	0.36×	0.43×	0.44×	0.48×	0.2×	0.04×	0.11×
Interest coverage	9.21×	13.2×	14.61×	21×	25.92×	52.22×	66.2×	44.54×
Dividend yield	4.8%	3.6%	3.4%	2.2%	2.3%	1.9%	2.0%	1.7%
Payout ratio	132.4%	76.4%	74.7%	55.8%	57.6%	53.7%	44.7%	38.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.1%	10.1%	10.3%	13.3%	13.0%	14.1%	16.5%	18.1%
Return on invested capital	4.3%	6.9%	6.9%	8.7%	8.0%	10.3%	13.8%	14.4%
Return on assets	3.6%	6.0%	5.9%	7.5%	7.2%	9.2%	12.1%	12.4%
Free cash flow yield	4.1%	6.0%	4.4%	3.4%	3.3%	2.9%	3.0%	3.7%
Earnings yield	3.7%	4.7%	4.5%	4.0%	3.9%	3.5%	4.5%	4.4%
Enterprise value	$15.2B	$19.1B	$20.1B	$27.6B	$26B	$25.8B	$21.4B	$23.3B
Net debt / EBITDA	2.18×	1.54×	1.92×	1.45×	1.94×	-0.31×	-0.3×	0.12×
Cash conversion cycle (days)	63	58	58	58	51	48	45	40