Hormel Foods Corporation

DB:HO7 Stock Report

Market Cap: €16.6b

Hormel Foods Valuation

Is HO7 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 HO7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HO7 (€30.35) is trading below our estimate of fair value (€64.89)

Significantly Below Fair Value: HO7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HO7?

Key metric: As HO7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HO7. This is calculated by dividing HO7's market cap by their current earnings.
What is HO7's PE Ratio?
PE Ratio21.6x
EarningsUS$805.04m
Market CapUS$17.34b

Price to Earnings Ratio vs Peers

How does HO7's PE Ratio compare to its peers?

The above table shows the PE ratio for HO7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
SZU Südzucker
6.2x-10.2%€2.1b
SSH Südwestdeutsche Salzwerke
14.4xn/a€583.2m
NLM FRoSTA
11.7xn/a€412.2m
SMB Schwälbchen Molkerei Jakob Berz
7xn/a€58.4m
HO7 Hormel Foods
21.6x7.6%€17.3b

Price-To-Earnings vs Peers: HO7 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

How does HO7's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HO7 21.6xIndustry Avg. 13.7xNo. of Companies20PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HO7 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is HO7'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.

HO7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: HO7 is good value based on its Price-To-Earnings Ratio (21.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).

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 HO7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.35
€30.54
+0.6%
8.1%€35.28€25.74n/a10
Dec ’25€30.03
€30.19
+0.5%
6.4%€33.08€26.46n/a10
Nov ’25€28.20
€29.54
+4.8%
6.9%€33.29€25.89n/a10
Oct ’25€28.34
€28.86
+1.8%
6.9%€32.42€25.21n/a10
Sep ’25€29.18
€29.23
+0.2%
7.7%€33.65€25.46n/a10
Aug ’25€29.99
€29.38
-2.0%
6.0%€32.39€25.91n/a10
Jul ’25€28.49
€29.38
+3.1%
6.0%€32.39€25.91n/a10
Jun ’25€28.29
€29.19
+3.2%
6.3%€32.26€25.81n/a9
May ’25€32.97
€28.96
-12.2%
6.8%€32.00€25.60n/a10
Apr ’25€31.60
€28.96
-8.4%
6.8%€32.00€25.60n/a10
Mar ’25€30.93
€29.38
-5.0%
6.9%€32.30€25.84n/a10
Feb ’25€28.12
€28.00
-0.4%
8.1%€30.73€23.92n/a10
Jan ’25€28.94
€28.43
-1.8%
7.1%€31.03€24.15n/a9
Dec ’24€28.40
€28.78
+1.3%
11.5%€36.66€23.89€30.039
Nov ’24€30.78
€33.01
+7.2%
12.2%€39.75€27.45€28.209
Oct ’24€36.23
€36.03
-0.6%
7.3%€39.14€30.76€28.349
Sep ’24€35.54
€36.52
+2.8%
8.7%€41.87€30.63€29.189
Aug ’24€37.47
€36.57
-2.4%
8.6%€40.11€30.24€29.999
Jul ’24€36.76
€37.41
+1.8%
7.8%€41.14€31.93€28.499
Jun ’24€37.63
€38.27
+1.7%
9.9%€45.45€32.53€28.298
May ’24€36.72
€37.87
+3.1%
10.3%€44.57€31.90€32.978
Apr ’24€36.23
€39.12
+8.0%
9.8%€45.99€32.92€31.609
Mar ’24€41.28
€41.61
+0.8%
9.6%€47.93€34.56€30.9310
Feb ’24€41.66
€41.61
-0.1%
9.6%€47.93€34.56€28.1210
Jan ’24€42.61
€42.69
+0.2%
9.8%€49.06€35.38€28.9410
Dec ’23€44.69
€42.99
-3.8%
9.8%€49.40€35.63€28.4010

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 Analysis2024/12/20 12:36
End of Day Share Price 2024/12/20 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