Hormel Foods Corporation

WBAG:HRL Stock Report

Market Cap: €16.8b

Hormel Foods Valuation

Is HRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HRL (€30.47) is trading below our estimate of fair value (€63.77)

Significantly Below Fair Value: HRL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HRL?

Key metric: As HRL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HRL. This is calculated by dividing HRL's market cap by their current earnings.
What is HRL's PE Ratio?
PE Ratio21.7x
EarningsUS$805.04m
Market CapUS$17.49b

Price to Earnings Ratio vs Peers

How does HRL's PE Ratio compare to its peers?

The above table shows the PE ratio for HRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.2x
AGR AGRANA Beteiligungs-Aktiengesellschaft
25.9xn/a€674.9m
MAN Josef Manner & Comp
29.6xn/a€204.1m
KRZ Kerry Group
23.6x10.8%€15.6b
TSN Tyson Foods
25.8x22.4%US$20.6b
HRL Hormel Foods
21.7x7.6%€17.5b

Price-To-Earnings vs Peers: HRL is good value based on its Price-To-Earnings Ratio (21.7x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does HRL's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HRL 21.7xIndustry Avg. 13.7xNo. of Companies19PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HRL is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the European Food industry average (13.7x).

Price to Earnings Ratio vs Fair Ratio

What is HRL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HRL's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.47
€30.54
+0.2%
8.1%€35.28€25.74n/a10
Dec ’25€30.69
€30.19
-1.6%
6.4%€33.08€26.46n/a10
Nov ’25€28.45
€29.54
+3.8%
6.9%€33.29€25.89n/a10
Oct ’25€28.68
€28.86
+0.6%
6.9%€32.42€25.21n/a10
Sep ’25€29.22
€29.23
+0.05%
7.7%€33.65€25.46n/a10
Aug ’25€29.87
€29.38
-1.6%
6.0%€32.39€25.91n/a10
Jul ’25€28.47
€29.38
+3.2%
6.0%€32.39€25.91n/a10
Jun ’25€28.61
€29.19
+2.0%
6.3%€32.26€25.81n/a9
May ’25€33.23
€28.96
-12.9%
6.8%€32.00€25.60n/a10
Apr ’25€32.30
€28.96
-10.3%
6.8%€32.00€25.60n/a10
Mar ’25€30.89
€29.38
-4.9%
6.9%€32.30€25.84n/a10
Feb ’25€28.04
€28.00
-0.1%
8.1%€30.73€23.92n/a10
Jan ’25€28.71
€28.43
-1.0%
7.1%€31.03€24.15n/a9
Dec ’24€28.45
€28.78
+1.2%
11.5%€36.66€23.89€30.699
Nov ’24€30.88
€33.01
+6.9%
12.2%€39.75€27.45€28.459
Oct ’24€36.26
€36.03
-0.6%
7.3%€39.14€30.76€28.689
Sep ’24€35.73
€36.52
+2.2%
8.7%€41.87€30.63€29.229
Aug ’24€37.03
€36.57
-1.2%
8.6%€40.11€30.24€29.879
Jul ’24€36.61
€37.41
+2.2%
7.8%€41.14€31.93€28.479
Jun ’24€37.42
€38.27
+2.3%
9.9%€45.45€32.53€28.618
May ’24€36.33
€37.87
+4.2%
10.3%€44.57€31.90€33.238
Apr ’24€36.50
€39.12
+7.2%
9.8%€45.99€32.92€32.309
Mar ’24€41.06
€41.61
+1.3%
9.6%€47.93€34.56€30.8910
Feb ’24€41.50
€41.61
+0.3%
9.6%€47.93€34.56€28.0410
Jan ’24€42.55
€42.69
+0.3%
9.8%€49.06€35.38€28.7110
Dec ’23€45.17
€42.99
-4.8%
9.8%€49.40€35.63€28.4510

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/29 20:02
End of Day Share Price 2024/12/27 00:00
Earnings2024/10/27
Annual Earnings2024/10/27

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hormel Foods Corporation is covered by 35 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Ishan MajumdarBaptista Research
Benjamin TheurerBarclays