HORMEL FOODS CORP /DE/
$22.09
+0.26 (+1.19%) · delayed · Nov 13, 2026
Five-year price
52w $18.96 to $26.60
- Market cap
- $12.2B
- Enterprise value
- $14.3B
- P/E
- 25.4×
- 17.5× on 3y avg EPS
- EV / EBIT
- 20.0×
- FCF yield
- 4.4%
- ROIC
- 5.1%
- Debt / equity
- 0.36
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
50
- ○ROIC > 12% (5y avg)5y avg ROIC 8.3%
- ○ROE > 15% (5y avg)5y avg ROE 10.5%
- ●Stable operating marginsMargin volatility 1.6% (σ, 5y)
- ●Earnings convert to cashFCF / net income 101% (5y avg)
- ●Growing revenueRevenue CAGR 5y 4.7%
- ○Shrinking share countDiluted shares 0.7% over 5y
Value
20
- ○P/E below 15P/E 25.4
- ○EV/EBIT below 12EV/EBIT 20.0
- ○FCF yield above 6%FCF yield 4.4%
- ○Price below Graham NumberGraham Number $16.76
- ●P/B below 3P/B 1.5
Safety
80
- ●Debt / equity below 0.5D/E 0.36
- ○Debt payable in < 4 yrs of earningsNet debt $2.2B
- ●Interest coverage > 8xCoverage 9.2x
- ●Current ratio > 1.5Current ratio 2.47
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $12.1B
- ●Strong condition (current ratio ≥ 2)Current ratio 2.47
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth -25%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 17.5
- ○P/E × P/B ≤ 22.5Product 26.9
Valuation lab
What do you have to believe?
At $22.09, the market is pricing in about 9.5% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $2.2B · 550M shares · 5y revenue CAGR 4.7%
Intrinsic value
$14.51
Price
$22.09
Premium paid
52%
What the price implies
The market is paying for 9.5% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
57% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 9,523 | 9,168 | 9,546 | 9,497 | 9,608 | 11,386 | 12,459 | 12,110 | 11,921 | 12,106 |
| Gross profit | 2,158 | 1,997 | 1,979 | 1,885 | 1,826 | 1,928 | 2,165 | 2,000 | 2,022 | 1,892 |
| Operating income | 1,324 | 1,277 | 1,180 | 1,196 | 1,100 | 1,123 | 1,313 | 1,072 | 1,068 | 719 |
| Operating margin | 13.9% | 13.9% | 12.4% | 12.6% | 11.5% | 9.9% | 10.5% | 8.9% | 9.0% | 5.9% |
| Pre-tax income | 1,317 | 1,279 | 1,181 | 1,210 | 1,115 | 1,126 | 1,278 | 1,013 | 1,035 | 663 |
| Income tax | 427 | 432 | 169 | 231 | 206 | 217 | 278 | 221 | 231 | 186 |
| Net income | 890 | 847 | 1,012 | 979 | 908 | 909 | 1,000 | 794 | 805 | 478 |
| EPS (diluted) | 1.64 | 1.57 | 1.86 | 1.80 | 1.66 | 1.66 | 1.82 | 1.45 | 1.47 | 0.87 |
| Diluted shares | 542 | 539 | 544 | 545 | 547 | 548 | 550 | 549 | 549 | 550 |
Who owns it