Hormel Foods HRL
Hormel Foods is an American packaged and processed food company, known for brands like Spam, Jennie-O, and Skippy, operating in protein, prepared meals, and refrigerated products segments. Hormel Foods shows weak fundamentals: negative revenue growth (-2.4%), earnings down -67%, and a payout ratio of 188% that jeopardizes dividend sustainability, despite an apparently low forward P/E (12.69).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Hormel Foods is an American packaged and processed food company, known for brands like Spam, Jennie-O, and Skippy, operating in protein, prepared meals, and refrigerated products segments. Hormel Foods shows weak fundamentals: negative revenue growth (-2.4%), earnings down -67%, and a payout ratio of 188% that jeopardizes dividend sustainability, despite an apparently low forward P/E (12.69).
Score by category
| Category | Score |
|---|---|
| Financial health | 6.5 |
| Quality / Moat | 3.7 |
| Valuation | 5.6 |
| Growth | 1.4 |
| Dividend | 4.1 |
| Momentum | 3.7 |
| Risk & Context | 8.4 |
OVERALL SCORE: 5.0/10
Context and risks
Hormel operates in the packaged foods sector, a defensive industry with no direct exposure to rates, oil, or geopolitics. The main risk is dividend sustainability (188% payout) and falling earnings, already reflected in the quantitative scores. The adjustment reflects business model risk from margin erosion and competitive pressure in proteins.
News considered in the analysis
- 3 Cash-Producing Stocks That Concern Us — Artículo genérico que menciona a Hormel entre otras; señala preocupación sobre la generación de caja, pero sin datos concretos nuevos.
- Can Hormel Foods' Protein Portfolio Win Over Value-Seeking Consumers? — Análisis especulativo sobre la estrategia de marca sin información material nueva.
- Can Tyson Foods Keep Paying Its Dividend While Beef Bleeds Money? — Noticia sobre un competidor (Tyson), no sobre Hormel; sin impacto directo.
- Hormel Foods vs General Mills: One Dividend Rests on Solid Cash, the Other on Fumes — Comparativa que cuestiona la sostenibilidad del dividendo de Hormel, con payout del 188% y beneficios en caída del 67%.
- 5 Beaten-Down Dividend Kings Ready to Roar Back in 2027 (One Yields Over 5%) — Artículo optimista que incluye a Hormel como candidata a recuperación, pero es especulativo y sin catalizadores concretos.
Verdict: Avoid or keep under watch; the combination of business deterioration and an uncovered dividend suggests more risk than opportunity.
Main risk: The main risk is the unsustainability of the dividend (188% payout) amid a free-falling earnings trend (-67%), which could force a cut and further depress the stock.
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