| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 33.3x | 17.3x | Around median | |
Growth | 16 | 0.7% | 7.1% | Bottom tier | |
Quality | 47 | 3.6% | 4.5% | Around median | |
Safety | 70 | 2.5x | 2.6x | Top tier | |
Capital Return | 54 | 5.57% | 0.06% | Around median | |
Momentum | 46 | -16.1% | -1.6% | Around median | |
Sentiment | 85 | 6 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
79% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hormel Foods Corporation operates in protein-focused foods through three primary channels: foodservice, retail, and international markets. The company relies on sales of prepared proteins and pepperoni to foodservice customers, and on consumer brands such as Jennie-O, Applegate, Hormel, Planters, Herdez, and SPAM in retail and exports; foodservice particularly benefits from a direct sales organization and a higher-value-added, higher-margin product mix.
In Q3 fiscal 2026, organic net sales declined 2% year over year, affected by portfolio reshaping, lower commodity markets, and a weak consumer environment. Gross profit was $472 million at a gross margin of 15.9%, while adjusted operating margin increased 60 basis points to 9%, and adjusted earnings per share reached $0.37, up 6%. The foodservice segment maintained organic sales growth for the twelfth consecutive quarter, while retail experienced a high-single-digit volume decline, and the international segment recorded a turbulent quarter due to the sale of the Brazil operations, an impairment of a minority investment in Indonesia, and delayed recognition of certain SPAM export sales.
During the first nine months of fiscal 2026, organic net sales increased 1%, adjusted operating margin expanded 30 basis points, and adjusted earnings per share grew 6%. Operating activities generated $241 million in the quarter, up 54%, while capital expenditures were $68 million and distributions to shareholders were $161 million; the company also ended the quarter with $840 million in cash, an increase of $169 million since the end of fiscal 2025.
The analyst consensus on HRL is Neutral, with an average target of $24.67 and a target range between $23 and $26. The average target is only $1.93, or approximately 7.3%, below the top of the 52-week range of $26.6, but the reduction in organic sales guidance and the stock's 10% decline following the August 27, 2026 results highlight that valuation improvement requires a recovery in volumes, not cost-driven earnings growth alone.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Organic net sales declined 2% year over year, and gross profit was $472 million at a margin of 15.9%. Adjusted operating margin increased 60 basis points to 9%, and adjusted earnings per share reached $0.37, up 6%. The company generated operating cash flow of $241 million, an increase of 54% from the prior year.
Q3 fiscal 2026 revenue came in below analysts' estimates, alongside a 2% decline in organic net sales. Hormel Foods also lowered its annual organic sales growth range to 1%–2% from 1%–4% due to consumer and volume weakness and portfolio reshaping. The market focused on sales weakness despite the increase in the lower end of adjusted earnings per share guidance to $1.45.
In Q3 fiscal 2026, the foodservice segment achieved its twelfth consecutive quarter of organic net sales growth, supported by premium prepared proteins and branded pepperoni. In retail, Jennie-O ground turkey and Hormel Refrigerated Entrees recorded mid- to high-single-digit growth in consumer consumption. Applegate, Planters, Herdez, Hormel Black Label bacon, and the core canned portfolio also recorded growth during the quarter.
Automated analysis for informational purposes only — not investment advice.
The company expects net sales between $12.1 and $12.2 billion, equivalent to organic growth of between 1% and 2%. It expects adjusted earnings per share between $1.45 and $1.51 after raising the lower end from $1.43. The adjusted earnings per share and operating income outlook range is equivalent to annual growth of between 6% and 10%.
Gross margin was 15.9% in Q3 fiscal 2026 and was affected by lower volumes, weak plant utilization, and inventory rebalancing costs. The company began benefiting from lower pork prices, but it expects a larger portion of the impact to emerge in subsequent quarters due to the timing of inventory turnover. In contrast, freight and fuel costs remained elevated, and beef prices remained above prior-year levels.
Jeff Ettinger participated in the Q3 fiscal 2026 call as interim chief executive officer, and John Ghingo participated as president and chief executive officer-elect. The company confirmed the appointment of John Ghingo as its next chief executive officer, while Jeff Ettinger said this was his final earnings call as interim chief executive officer and that he would continue as a member of the board of directors. Hormel Foods also announced that Ash Bhumbla would be the next chief financial officer and thanked Paul Kuehneman for his leadership as interim chief financial officer and controller.