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HRL's latest portfolio move underscores its push to streamline international operations and focus on markets with stronger long-term growth potential.
Hormel Foods has increased its dividend for a stunning 60 consecutive years. It's a vaunted Dividend Aristocrat more than twice over. Hormel has a very good financial position. Its long-term debt/equity ratio is 0.4, while the interest coverage ratio is around 10. The P/E ratio is sitting at 17.4, based on midpoint guidance for this year's adjusted EPS. That's about as low as I've seen it on this stock.
Here is how Hormel Foods (HRL) and Kenvue (KVUE) have performed compared to their sector so far this year.
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Hormel Foods has been in a slow-motion bear hug. The stock sits 22.8% below its 52-week high, and the trailing GAAP payout ratio looks ugly after a $234 million non-cash impairment and a $61 million whole-bird turkey divestiture loss.
Hormel Foods remains a Buy, with a conservative valuation and solid dividend yield supporting patient investors amid sector weakness. HRL delivered its sixth consecutive quarter of organic top-line growth, with Foodservice and International segments outperforming despite macro headwinds. Management maintains long-term targets of 2%-3% organic sales and 5%-7% operating income growth, while robust cash flow and a balance sheet provide flexibility.
From a technical perspective, Hormel Foods (HRL) is looking like an interesting pick, as it just reached a key level of support. HRL recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
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Patient through the SPAM maker's painful slide from a $45 stock to the low $20s. Patient through missed earnings quarters, goodwill write-downs, and a turkey business that seemed to generate nothing but headaches.
Hormel Foods Corporation (HRL) Q2 2026 Earnings Call Transcript
Demand for Hormel's turkey brands are strong while Tyson's beef business posted an operating loss in the latest quarter.