# Hormel Foods Corporation (HRL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HRL/thesis · /stocks/HRL/memo

## Financial Snapshot

---
ticker: HRL
step: 04
generated: 2026-05-13
source: quick-research
---

### Hormel Foods Corporation (HRL) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | ~$12.5B | ~$12.1B | ~$11.9B | -1.6% |
| Gross Margin | ~19% | ~17% | ~18% | |
| Operating Margin | ~10% | ~8% | ~7% | |
| Net Income | ~$900M | ~$770M | ~$480M* | |
| EPS (diluted) | ~$1.65 | ~$1.40 | ~$0.88* | |

*FY2024 net income and EPS depressed by ~$234M international investment impairment charge. Adjusted EPS meaningfully higher — adjusted operating results more representative of recurring earnings power. Net profit margin declined to ~4% in FY2024 (vs. ~6.4% prior year) including impairment.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$900M |
| Free Cash Flow | ~$650M |
| Capital Expenditures | ~$250M |
| Cash & Equivalents | ~$742M |
| Total Debt | ~$3.0B |

*Operating cash flow ~$1.0B in FY2023; remained resilient even as GAAP earnings were impaired by non-cash charges. FCF supports the 60-year dividend growth streak (base dividend ~$1.13/share annually, ~3.5% yield at recent prices).*

#### Key Ratios (approximate)
- P/E: ~16–18x (adjusted) | EV/EBITDA: ~14x | Dividend Yield: ~3.5%
- Revenue Growth (FY2024): -1.6% | Adjusted Operating Margin: ~10–11%
- Dividend King: 60 consecutive years of dividend increases
- Revenue CAGR (5-year): ~2–3%/year (conservative, consumer staples compounder)

#### Growth Profile
Hormel's revenue has been declining modestly since FY2022 peak, pressured by cost inflation (protein/turkey commodity inputs, packaging), volume softness in the Retail channel, and consumer trade-down to private label in some categories. The $3.35B Planters acquisition (2021) added ~$1B revenue but has been integrating into lower-margin commodity snack nuts. The "Transform & Modernize" program targets $250M in annual savings by 2026 through supply chain optimization and portfolio simplification. Q1 FY2026 marked the fifth consecutive quarter of organic net sales growth — the inflection point after three years of decline. H1 FY2025 net sales: $5.89B, organic +1% YoY.

#### Forward Estimates
- FY2025 Revenue: ~$11.8–12.0B (slight decline or flat vs. FY2024; organic growth positive but offset by divestitures)
- FY2026 Outlook: Transform & Modernize savings accumulating; commodity protein divestitures reducing low-margin revenue exposure
- Transform & Modernize savings target: $250M annually by 2026 — meaningful vs. ~$800–900M in operating income
- Analyst consensus: Mixed — forward P/E ~16.2x below historical; analysts see 5–10% EPS recovery as Transform savings materialize

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HRL/fundamental

## Navigation

- Overview: /stocks/HRL
- Financials (this page): /stocks/HRL/financials
- Thesis: /stocks/HRL/thesis
- Investment Memo: /stocks/HRL/memo
- Coverage universe: /stocks