Hormel Foods Corporation

NYSE:HRL Stock Report

Market Cap: US$16.3b

Hormel Foods Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($30.22) is trading below our estimate of fair value ($54.8)

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 Ratio21.2x
EarningsUS$780.78m
Market CapUS$16.30b

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 Average25.9x
MKC McCormick
26.1x5.8%US$20.2b
CAG Conagra Brands
26.2x15.5%US$12.6b
CPB Campbell Soup
23x15.0%US$13.0b
TSN Tyson Foods
28.1x22.5%US$22.4b
HRL Hormel Foods
21.2x10.1%US$16.3b

Price-To-Earnings vs Peers: HRL is good value based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (25.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GCEH Global Clean Energy Holdings
2.1xn/aUS$43.91m
SEED Origin Agritech
1.9xn/aUS$15.55m
FAMI Farmmi
1.9xn/aUS$2.74m
IDBH.F Industrias Bachoco. de
0.0002xn/aUS$59.94k
HRL 21.2xIndustry Avg. 19.3xNo. of Companies7PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HRL is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the US Food industry average (19.3x).

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 Ratio21.2x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: HRL is good value based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

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
CurrentUS$30.22
US$31.85
+5.4%
6.4%US$35.00US$28.00n/a10
Nov ’25US$30.92
US$31.95
+3.3%
6.9%US$36.00US$28.00n/a10
Oct ’25US$31.66
US$32.05
+1.2%
6.9%US$36.00US$28.00n/a10
Sep ’25US$32.55
US$32.15
-1.2%
7.7%US$37.00US$28.00n/a10
Aug ’25US$32.46
US$31.75
-2.2%
6.0%US$35.00US$28.00n/a10
Jul ’25US$30.43
US$31.75
+4.3%
6.0%US$35.00US$28.00n/a10
Jun ’25US$30.98
US$31.67
+2.2%
6.3%US$35.00US$28.00n/a9
May ’25US$35.25
US$31.67
-10.2%
6.8%US$35.00US$28.00n/a10
Apr ’25US$34.98
US$31.67
-9.5%
6.8%US$35.00US$28.00n/a10
Mar ’25US$33.37
US$31.84
-4.6%
6.9%US$35.00US$28.00n/a10
Feb ’25US$30.86
US$30.44
-1.4%
8.1%US$33.40US$26.00n/a10
Jan ’25US$32.11
US$30.60
-4.7%
7.1%US$33.40US$26.00n/a9
Dec ’24US$31.32
US$31.32
+0.007%
11.5%US$39.90US$26.00n/a9
Nov ’24US$32.44
US$34.88
+7.5%
12.2%US$42.00US$29.00US$30.929
Oct ’24US$38.03
US$38.66
+1.6%
7.3%US$42.00US$33.00US$31.669
Sep ’24US$38.40
US$39.34
+2.5%
8.7%US$45.10US$33.00US$32.559
Aug ’24US$40.59
US$41.12
+1.3%
8.6%US$45.10US$34.00US$32.469
Jul ’24US$40.22
US$41.01
+2.0%
7.8%US$45.10US$35.00US$30.439
Jun ’24US$40.20
US$41.18
+2.4%
9.9%US$48.90US$35.00US$30.988
May ’24US$40.63
US$41.55
+2.3%
10.3%US$48.90US$35.00US$35.258
Apr ’24US$39.88
US$41.60
+4.3%
9.8%US$48.90US$35.00US$34.989
Mar ’24US$43.83
US$45.14
+3.0%
9.6%US$52.00US$37.50US$33.3710
Feb ’24US$45.34
US$45.14
-0.4%
9.6%US$52.00US$37.50US$30.8610
Jan ’24US$45.55
US$45.25
-0.7%
9.8%US$52.00US$37.50US$32.1110
Dec ’23US$47.59
US$45.25
-4.9%
9.8%US$52.00US$37.50US$31.3210
Nov ’23US$46.45
US$45.35
-2.4%
9.9%US$52.00US$37.50US$32.4410

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

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