Latest Ratios: P/E Ratio 28.4x · EV/EBITDA 16.1x · ROE 6.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.6B | $13.1B | $16.8B | $17.9B | $25.5B | $23.2B | $26.6B | $22.3B | $23.7B | $16.8B | $20.9B |
| Enterprise Value | $15.8B | $15.3B | $18.9B | $20.4B | $27.8B | $25.9B | $26.2B | $21.9B | $23.9B | $16.6B | $20.7B |
| P/E Ratio → | 28.39 | 27.39 | 20.78 | 22.45 | 25.52 | 25.49 | 29.33 | 22.72 | 23.46 | 19.85 | 23.48 |
| P/S Ratio | 1.12 | 1.08 | 1.41 | 1.48 | 2.05 | 2.04 | 2.77 | 2.35 | 2.49 | 1.83 | 2.19 |
| P/B Ratio | 1.72 | 1.66 | 2.09 | 2.31 | 3.39 | 3.32 | 4.14 | 3.76 | 4.23 | 3.40 | 4.69 |
| P/FCF | 25.44 | 24.55 | 16.60 | 22.98 | 29.78 | 30.03 | 34.99 | 33.45 | 27.54 | 20.67 | 28.09 |
| P/OCF | 16.08 | 15.52 | 13.24 | 17.05 | 22.49 | 23.13 | 23.59 | 24.15 | 19.11 | 16.25 | 21.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.26 | 1.58 | 1.69 | 2.23 | 2.27 | 2.73 | 2.30 | 2.50 | 1.81 | 2.18 |
| EV / EBITDA | 16.06 | 15.58 | 14.24 | 15.42 | 17.98 | 19.43 | 20.06 | 16.06 | 17.81 | 11.80 | 14.23 |
| EV / EBIT | 21.96 | 20.64 | 16.92 | 18.81 | 20.77 | 22.13 | 23.07 | 17.81 | 19.79 | 12.86 | 15.58 |
| EV / FCF | — | 28.64 | 18.69 | 26.29 | 32.48 | 33.54 | 34.45 | 32.81 | 27.73 | 20.43 | 27.87 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.6% | 15.6% | 17.0% | 16.5% | 17.4% | 16.9% | 19.0% | 19.8% | 20.7% | 21.8% | 22.7% |
| Operating Margin | 5.9% | 5.9% | 9.0% | 8.9% | 10.5% | 9.9% | 11.5% | 12.6% | 12.4% | 13.9% | 13.9% |
| Net Profit Margin | 4.0% | 4.0% | 6.8% | 6.6% | 8.0% | 8.0% | 9.5% | 10.3% | 10.6% | 9.2% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.0% | 6.0% | 10.2% | 10.4% | 13.8% | 13.6% | 14.7% | 17.0% | 19.2% | 18.0% | 21.1% |
| ROA | 3.6% | 3.6% | 6.0% | 5.9% | 7.7% | 8.0% | 10.1% | 12.0% | 13.4% | 12.7% | 14.2% |
| ROIC | 5.3% | 5.3% | 7.8% | 8.0% | 10.1% | 10.7% | 14.3% | 15.9% | 16.8% | 21.2% | 23.7% |
| ROCE | 6.0% | 6.0% | 9.2% | 9.3% | 11.4% | 11.4% | 14.3% | 17.1% | 18.3% | 22.7% | 25.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.36 | 0.43 | 0.44 | 0.48 | 0.20 | 0.04 | 0.11 | 0.05 | 0.06 |
| Debt / EBITDA | 2.91 | 2.91 | 2.16 | 2.50 | 2.13 | 2.50 | 1.00 | 0.18 | 0.47 | 0.18 | 0.17 |
| Net Debt / Equity | — | 0.28 | 0.26 | 0.33 | 0.31 | 0.39 | -0.06 | -0.07 | 0.03 | -0.04 | -0.04 |
| Net Debt / EBITDA | 2.23 | 2.23 | 1.60 | 1.94 | 1.50 | 2.03 | -0.31 | -0.31 | 0.12 | -0.14 | -0.11 |
| Debt / FCF | — | 4.09 | 2.10 | 3.31 | 2.70 | 3.51 | -0.54 | -0.63 | 0.19 | -0.24 | -0.22 |
| Interest Coverage | 9.50 | 9.50 | 13.80 | 14.81 | 21.44 | 27.00 | 53.91 | 67.95 | 45.59 | 101.82 | 103.34 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.47 | 2.47 | 2.32 | 1.43 | 2.47 | 2.08 | 2.38 | 2.14 | 1.80 | 1.92 | 1.93 |
| Quick Ratio | 1.20 | 1.20 | 1.19 | 0.70 | 1.30 | 1.12 | 1.67 | 1.19 | 0.95 | 1.04 | 0.99 |
| Cash Ratio | 0.51 | 0.51 | 0.55 | 0.33 | 0.68 | 0.45 | 1.15 | 0.62 | 0.40 | 0.42 | 0.39 |
| Asset Turnover | — | 0.90 | 0.89 | 0.90 | 0.94 | 0.90 | 0.97 | 1.17 | 1.17 | 1.31 | 1.49 |
| Inventory Turnover | 5.85 | 5.85 | 6.28 | 6.02 | 6.00 | 6.91 | 7.25 | 7.30 | 7.85 | 7.79 | 7.47 |
| Days Sales Outstanding | — | 26.58 | 26.59 | 24.85 | 25.63 | 28.98 | 28.26 | 22.84 | 23.11 | 25.51 | 23.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.7% | 4.8% | 3.7% | 3.3% | 2.2% | 2.3% | 1.8% | 2.0% | 1.6% | 2.1% | 1.4% |
| Payout Ratio | 132.4% | 132.4% | 76.4% | 74.7% | 55.8% | 57.6% | 53.7% | 44.7% | 38.3% | 40.9% | 33.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.7% | 4.8% | 4.5% | 3.9% | 3.9% | 3.4% | 4.4% | 4.3% | 5.0% | 4.3% |
| FCF Yield | 3.9% | 4.1% | 6.0% | 4.4% | 3.4% | 3.3% | 2.9% | 3.0% | 3.6% | 4.8% | 3.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.1% | 0.0% | 0.8% | 0.2% | 0.6% | 0.4% |
| Total Shareholder Yield | 4.7% | 4.8% | 3.7% | 3.4% | 2.2% | 2.3% | 1.9% | 2.7% | 1.8% | 2.6% | 1.8% |
| Shares Outstanding | — | $550M | $549M | $549M | $550M | $548M | $547M | $545M | $544M | $539M | $542M |
Input cost margin compression
Based on recent market data, HRL trades at a trailing P/E of 30.46, which appears elevated relative to its historical norms and suggests that investors are pricing in a recovery in profitability that has yet to materialize in the company's reported quarterly financial results.
The forward P/E of 17.77 indicates that the market anticipates significant earnings growth, yet this expectation may be overly optimistic given the persistent margin compression observed in recent quarters. Investors should monitor whether the current valuation premium is justified by brand equity or if it represents a mispricing of the company's long-term earnings power in a volatile commodity environment.
As reported in financial statements, HRL's ROIC has trended downward to 1.9% in 2026Q2, reflecting a significant decay in the company's ability to generate returns on its invested capital compared to the more robust performance levels observed in earlier historical periods.
This decline in ROIC suggests that the capital deployed into recent acquisitions and infrastructure may not be yielding the expected synergies, potentially due to the high cost of integration or competitive pressures. The persistent gap between current returns and the company's cost of capital warrants further investigation into the long-term viability of its current capital allocation strategy.
According to recent SEC filings, HRL's cash conversion cycle has fluctuated around 60 days, indicating that the company's working capital efficiency remains constrained by inventory management challenges and the inherent complexities of its protein-heavy supply chain operations across the retail and foodservice segments.
The variability in the cash conversion cycle suggests that the company may be struggling to optimize its inventory turnover, which directly impacts its ability to generate free cash flow. Investors should monitor whether these inefficiencies are structural or if they represent temporary disruptions in the supply chain that could be mitigated through improved operational discipline.
Based on reported figures, HRL maintains a debt-to-equity ratio of 0.36, which provides a fortress-like balance sheet that appears well-positioned to withstand ongoing operational volatility and potential future shocks in the commodity protein markets compared to more highly levered industry peers.
This conservative capital structure offers significant financial flexibility, allowing the company to maintain its dividend commitments even during periods of negative free cash flow. While this leverage profile is a clear strength, it also raises questions about whether management is being too cautious in deploying capital to drive future growth.
The P/E ratio is frequently misapplied to HRL, as it obscures the significant volatility caused by biological asset adjustments and non-recurring acquisition costs that often distort the company's true underlying earnings power in any given quarter.
Analysts should instead focus on EV/EBITDA or normalized free cash flow metrics to better assess the company's operational performance, as these measures are less sensitive to the accounting noise inherent in the food processing industry. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HRL stock.
Hormel Foods Corporation's current P/E ratio is 28.4x. The historical average is 20.3x. This places it at the 97th percentile of its historical range.
Hormel Foods Corporation's current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Hormel Foods Corporation's return on equity (ROE) is 6.0%. The historical average is 16.1%.
Based on historical data, Hormel Foods Corporation is trading at a P/E of 28.4x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hormel Foods Corporation's current dividend yield is 4.66% with a payout ratio of 132.4%.
Hormel Foods Corporation has 15.6% gross margin and 5.9% operating margin.
Hormel Foods Corporation's Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.