Business Description
Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chilies, shelf-stable microwaveable meals, hashes, stews, tortillas, salsas, tortilla chips, and others. The company also engages in the processing, marketing, and sale of branded and unbranded pork, beef, poultry, and turkey products, as well as offers nutritional food products and supplements, desserts and drink mixes, and industrial gelatin products. It sells its products primarily under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler's, Columbus, Gatherings, Herdez, Wholly, Columbus, Planters, NUT-rition, Planters Cheez Balls, Corn Nuts, etc. brand names through sales personnel, independent brokers, and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.
Business History
Generated: Jun 7, 2026 5:17pmPrice Overview
Last updated: Jun 7, 2026 5:14pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 0.87
Total Equity: $7.90B
Shares: 550,496,000
Total Debt: $2.86B
Cash: $670.68M
EBITDA: $1.01B
Total Debt: $2.86B
Cash: $670.68M
Revenue: $12.11B
Revenue: $12.11B
Revenue: $12.11B
Total Equity: $7.90B
Tax Rate: 28.0%
Equity: $7.90B
Total Debt: $2.86B
Cash: $670.68M
Current Liabilities: $1.38B
Long-Term Debt: $2.85B
Total Debt: $2.86B
Total Equity: $7.90B
Shares: 550,496,000
Shares: 550,496,000
CapEx: -$310.90M
Shares: 550,496,000
Stock Price: $23.62
Net Income: $478.20M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.4B | $12.5B | $12.1B | $11.9B | $12.1B |
| Cost of Revenue | $9.5B | $10.3B | $10.1B | $9.9B | $10.2B |
| Gross Profit | $1.9B | $2.2B | $2.0B | $2.0B | $1.9B |
| Operating Expenses | $805.3M | $852.1M | $927.8M | $954.2M | $1.2B |
| Operating Income | $1.1B | $1.3B | $1.1B | $1.1B | $718.6M |
| Net Income | $908.8M | $1,000.0M | $793.6M | $805.0M | $478.2M |
| EBITDA | $1.4B | $1.6B | $1.3B | $1.4B | $1.0B |
| EPS | $1.68 | $1.84 | $1.45 | $1.47 | $0.87 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $613.5M | $982.1M | $736.5M | $741.9M | $670.7M |
| Total Current Assets | $2.9B | $3.6B | $3.3B | $3.2B | $3.4B |
| Total Assets | $12.7B | $13.3B | $13.4B | $13.4B | $13.4B |
| Current Liabilities | $1.4B | $1.5B | $2.3B | $1.4B | $1.4B |
| Long-Term Debt | $3.3B | $3.3B | $2.4B | $2.9B | $2.9B |
| Total Liabilities | $5.7B | $5.8B | $5.7B | $5.4B | $5.5B |
| Total Equity | $7.0B | $7.5B | $7.7B | $8.0B | $7.9B |
| Retained Earnings | $6.9B | $7.3B | $7.5B | $7.7B | $7.5B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.0B | $1.1B | $1.0B | $1.3B | $845.3M |
| Capital Expenditure | -$230.2M | -$277.7M | -$270.2M | -$256.4M | -$310.9M |
| Free Cash Flow | $771.7M | $857.3M | $777.6M | $1.0B | $534.3M |
| Acquisitions (net) | -$3.4B | $2.4M | -$427.7M | $32.0M | $18.2M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$20.0M | $0 | -$12.3M | $0 | $0 |
| Net Change in Cash | -$1.1B | $368.6M | -$245.6M | $5.3M | -$71.2M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|
| Revenue |
$12.1B $12.1B – $12.2B
|
$12.3B $12.2B – $12.3B
|
$12.5B $12.3B – $12.6B
|
$12.8B $12.8B – $12.8B
|
| EBITDA |
$1.4B $1.4B – $1.4B
|
$1.4B $1.4B – $1.4B
|
$1.4B $1.4B – $1.4B
|
$1.4B $1.4B – $1.4B
|
| Net Income |
$750.6M $745.0M – $756.2M
|
$755.9M $711.1M – $852.2M
|
$844.6M $787.5M – $899.2M
|
$876.5M $867.0M – $982.6M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +9.4% | -2.8% | -1.6% | +1.6% |
| Gross Profit Growth | +12.3% | -7.6% | +1.1% | -6.4% |
| Operating Income Growth | +16.9% | -18.3% | -0.4% | -32.7% |
| Net Income Growth | +10.0% | -20.6% | +1.4% | -40.6% |
| EBITDA Growth | +14.3% | -15.0% | +2.5% | -26.8% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:19pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-09 | Bonifant William W. | A-Award | 34,900.00 | $23.98 | $836,902 |
| 2026-06-09 | Bonifant William W. | A-Award | 5,734.00 | $0.00 | $0 |
| 2026-06-09 | Borrelli Domenic | A-Award | 50,800.00 | $23.98 | $1.2M |
| 2026-06-09 | Borrelli Domenic | A-Award | 8,341.00 | $0.00 | $0 |
| 2026-04-27 | Aakre D Scott | F-InKind | 1,722.00 | $21.47 | $36,971 |
| 2026-04-14 | Bonifant William W. | A-Award | 87,700.00 | $20.76 | $1.8M |
| 2026-04-14 | Bonifant William W. | A-Award | 12,043.00 | $0.00 | $0 |
| 2026-03-31 | Schoneman Debbra L. | A-Award | 1,332.78 | $22.65 | $30,187 |
| 2026-03-31 | Bhojwani Gary C. | A-Award | 2,665.56 | $22.65 | $60,375 |
| 2026-03-31 | Newlands William A | A-Award | 6,721.85 | $22.65 | $152,250 |
| 2026-03-31 | White Steven Andrew | A-Award | 2,665.56 | $22.65 | $60,375 |
| 2026-03-31 | Policinski Christopher J. | A-Award | 2,491.72 | $22.65 | $56,437 |
| 2026-03-09 | Bonifant William W. | 0.00 | $0.00 | $0 | |
| 2026-03-18 | White Steven Andrew | G-Gift | 5,405.00 | $0.00 | $0 |
| 2026-03-18 | White Steven Andrew | G-Gift | 5,405.00 | $0.00 | $0 |
| 2026-02-23 | Borrelli Domenic | 0.00 | $0.00 | $0 | |
| 2026-02-02 | Ghingo John F | A-Award | 201,000.00 | $24.46 | $4.9M |
| 2026-02-02 | Ghingo John F | A-Award | 32,707.00 | $0.00 | $0 |
| 2026-02-02 | Bhojwani Gary C. | A-Award | 6,541.00 | $0.00 | $0 |
| 2026-02-02 | Aakre D Scott | A-Award | 6,541.00 | $0.00 | $0 |
Dividend History (Last 20)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-07-13 | $0.29 | 2026-05-18 | 2026-07-13 | 2026-08-17 |
| 2026-04-13 | $0.29 | 2026-03-23 | 2026-04-13 | 2026-05-15 |
| 2026-01-12 | $0.29 | 2025-11-24 | 2026-01-12 | 2026-02-17 |
| 2025-10-14 | $0.29 | 2025-09-22 | 2025-10-14 | 2025-11-17 |
| 2025-07-14 | $0.29 | 2025-05-19 | 2025-07-14 | 2025-08-15 |
| 2025-04-14 | $0.29 | 2025-03-24 | 2025-04-14 | 2025-05-15 |
| 2025-01-13 | $0.29 | 2024-11-25 | 2025-01-13 | 2025-02-18 |
| 2024-10-15 | $0.28 | 2024-09-23 | 2024-10-15 | 2024-11-15 |
| 2024-07-15 | $0.28 | 2024-05-20 | 2024-07-15 | 2024-08-15 |
| 2024-04-12 | $0.28 | 2024-03-25 | 2024-04-15 | 2024-05-15 |
| 2024-01-12 | $0.28 | 2023-11-20 | 2024-01-16 | 2024-02-15 |
| 2023-10-13 | $0.28 | 2023-09-25 | 2023-10-16 | 2023-11-15 |
| 2023-07-14 | $0.28 | 2023-05-22 | 2023-07-17 | 2023-08-15 |
| 2023-04-14 | $0.28 | 2023-03-27 | 2023-04-17 | 2023-05-15 |
| 2023-01-13 | $0.28 | 2022-11-21 | 2023-01-17 | 2023-02-15 |
| 2022-10-14 | $0.26 | 2022-09-26 | 2022-10-17 | 2022-11-15 |
| 2022-07-08 | $0.26 | 2022-05-23 | 2022-07-11 | 2022-08-15 |
| 2022-04-08 | $0.26 | 2022-03-28 | 2022-04-11 | 2022-05-16 |
| 2022-01-14 | $0.26 | 2021-11-22 | 2022-01-18 | 2022-02-15 |
| 2021-10-15 | $0.25 | 2021-09-27 | 2021-10-18 | 2021-11-15 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: revenue has flatlined around $2.97-3.19B per quarter for two years with zero CAGR, and the Oct-2025 quarter printed a $56M net loss — that's the entire story of FY25's earnings collapse from $805M to $478M. Strip that quarter out and the other three FY25 quarters annualize to roughly $715M in NI, suggesting the "structural impairment" thesis may be overstating what looks like a single charge-laden quarter (likely Planters/Jennie-O writedowns or restructuring). The two FY26 quarters posted to date ($157.5M and $181.8M) annualize to ~$680M — soft but not catastrophic, and net margin has recovered to 5.3-6.0% from the Q4 disaster. FCF of $534M on a $13B market cap is a 4.1% yield, and the 4.85% dividend yield is barely covered by FCF ($534M FCF vs. ~$630M in dividends at current payout) — that's the actual fragility, not the narrative.
The synthesis verdict of $12.91 fair value (-45% downside) strikes me as aggressively wrong. A DCF that spits out $12.91 for a company doing $534M of FCF, $845M of OCF, with a 2.47 current ratio and modest leverage, is using either a punitive discount rate or terminal growth assumption that ignores that Hormel still owns SPAM, Skippy, Applegate, and Jennie-O — brands with real shelf space even if pricing power has eroded. EV/EBITDA of 14.5x is elevated for a no-growth packaged food name (peers like CAG, CPB trade 9-11x), so I'd peg fair value closer to $18-20 on a 10-11x EV/EBITDA — meaningful downside from $23.62 but nowhere near 45%. The Market Forces "deteriorating value trap" framing is directionally right; the synthesis number is too aggressive.
The contrarian read: insider activity is all awards and inkind tax withholding — zero open-market selling, which is notable for a stock down 26% from highs where you'd expect at least some discretionary trimming if insiders shared the bear thesis. Q1 and Q2 FY26 margins recovering to 5.3-6% suggests the Oct-2025 quarter was a kitchen-sink event, not a new run-rate. If FY26 lands at $750-800M NI (consensus-ish), the stock trades ~16-17x forward — premium to the group but not absurd for a Dividend King with 57 years of increases. The narrative model is correct that the premium is a "dividend aristocrat tax," but that tax has been durable for decades and won't unwind absent a cut. Dividend coverage is the actual swing factor, and at 1.0-1.1x FCF coverage it's tight but not broken.
Where the data is thin: balance sheet shows no total debt or equity figures, which matters because Hormel carried ~$3.3B in long-term debt historically — without that, leverage and true EV are guesses. The TTM-tagged metrics (PE 27.85, ROE 5.86%, ROIC 4.38%) are dragged down by that one bad quarter and will mechanically improve as it rolls off. ROIC of 4.4% is genuinely poor and below WACC — that's the real long-term problem, not the quarterly noise. I dissent from the synthesis's $12.91 (too punitive, ignores brand equity floor and a likely one-time charge) but agree with the direction. The narrative layer nails it: you're paying ~$8-10 of narrative premium per share for aristocrat status, and that premium is fragile to a dividend cut but durable otherwise. Fair value $18-20, current $23.62 = 15-25% overvalued, not 45%. Wait for either (a) a dividend cut that resets the narrative and offers $15-handle entry, or (b) two consecutive quarters of margin recovery to 6.5%+ that re-rates the multiple. Holding here earns you 4.85% yield with capital risk skewed negative.
GPT Critique
Upon examining Hormel Foods Corporation, what stands out is the company's recent financial performance and its implications for its valuation. Hormel's revenue has been relatively stable, fluctuating between $2.97 billion and $3.19 billion per quarter over the past two years. However, the company's profitability has suffered notably, with a dramatic net income drop from $805 million in 2024 to $478 million in 2025. This decline is largely attributed to a $56 million loss in the fourth quarter of 2025, a stark contrast to the otherwise stable earnings in other quarters. The company's free cash flow of $534 million suggests a 4.1% yield, which, coupled with a dividend yield of 4.85%, indicates tight but manageable coverage — a critical point given the company's status as a dividend aristocrat.
I agree with Opus regarding the overvaluation of Hormel's stock, though I find the synthesis's fair value of $12.91 excessively conservative. Opus rightly points out that the synthesis may have employed an overly punitive discount rate or growth assumption, ignoring the value of Hormel's established brand portfolio. However, the EV/EBITDA ratio of 14.5x is indeed high for a no-growth entity in the packaged foods sector, suggesting that a fair value closer to $18-$20, as Opus suggests, is reasonable. This accounts for the strength of Hormel's brands and the potential for margin stabilization, albeit not expansion.
Opus also makes a compelling argument against the narrative of structural impairment, noting the recovery of net margins to 5.3-6.0% in early 2026, which supports the notion that the Q4 2025 results were an anomaly. I concur with this assessment; the absence of insider selling during the stock's decline implies a different internal perspective than the market's bearish stance. However, I disagree slightly with Opus's conclusion on dividend safety. While Hormel's dividend yield is currently barely covered by free cash flow, the company's historical ability to maintain its dividend streak suggests resilience, though the risk of a cut cannot be entirely dismissed.
A careful skeptic of both our views might argue that the broader market forces, including rising commodity costs and shifting consumer preferences towards healthier options, could impose long-term pressure on Hormel's margins and pricing power. They might also point to the lack of detailed debt figures as a risk factor for assessing true enterprise value and leverage.