Hormel Foods Corporation (HRL)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn good returns on capital and defend themselves. Hormel is a familiar packaged-food company selling meat, nut, and other food products through retail, foodservice, and international segments. But the numbers show a business under pressure. In fiscal Q3 2026, the quarter ended 2026-07-26, revenue was $3.0B, but net income was only $59.6M and diluted EPS $0.11, down from $183.7M and $0.33 in fiscal Q3 2025, the quarter ended 2025-07-27. In fiscal year 2025, the year ended 2025-10-26, revenue was $12.1B, net income $478.2M, and diluted EPS $0.87; that is well below fiscal year 2024, the year ended 2024-10-27, when net income was $805.0M and diluted EPS $1.47. The FairStock Lynch category is SLOW GROWER — Shrinking, with profit falling about 12.0% a year over five years. Returns are meager: FairStock reports ROE of 4.29% and ROCE of 4.63%. The balance sheet is not stretched with D/E of 0.36, and trailing free cash flow is $780.9M, a 7.4% FCF yield. The dividend yield is 5.62%, which may attract income investors. However, at $19.21 on 2026-10-13, FairStock's P/E is 30.98, P/B is 1.35, and Graham Number is $14.10, implying the price is 36.24% above that conservative value. Altman Z is 2.36 and Piotroski F-score 4/9, suggesting neither distress nor strength. I want a margin of safety; here I see a decent balance sheet and cash generation but weak profit momentum and a price that is not clearly cheap. This is a wait-and-watch situation, not a compelling bargain.

In plain English: Hormel Foods sells packaged meat, nut, and other food products to stores, restaurants, and international customers. The business looks weak right now: profit fell sharply in the quarter ended 2026-07-26, and the latest full-year profit was below the prior year. At $19.21 on 2026-10-13, the price looks fair to expensive compared with recent earnings, though the dividend and cash flow give some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-26) · fiscal Q2 2026 10-Q (period ended 2026-04-26) · fiscal Q1 2026 10-Q (period ended 2026-01-25) · fiscal Q3 2025 10-Q (period ended 2025-07-27) · FY2025 10-K (period ended 2025-10-26) · FY2024 10-K (period ended 2024-10-27) · FY2023 10-K (period ended 2023-10-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer