HRLHormel Foods

$19.98-19% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 43 out of 100, Below average
Today's price. Only valuation depends on it.

Below average. Hormel Foods scores higher than 39% of the 1,794 companies Ryufin scores.

Carried by cycle position and capital allocation, held back by valuation and return on new capital.

Consumer Defensive median 60 · all companies 50

Valuation

26% of the score

14median 13

Hormel Foods is valued at 22.6x its operating profit before acquisition amortisation (EBITA), including debt: a rich multiple.

25x
20x
15x
10x
6x
22.6x
Full points at 6x or less, none from 25xfull points

Return on capital

18% of the score

50median 34

Over 7 years the business earned 9% a year after tax on the capital it uses.

2%
8%
15%
25%
9%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 4.6%

Return on new capital

16% of the score

0median 49

Over 6 years yearly profit fell by 6 cents for every dollar earned. New capital earned -9.1%, and 61% of profit went back into the business.

-5%
12%
-5.5%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score

67median 64

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countUp 0.1% a year over 5 years: new shares
61
5%
-3%
0.1%
0 pointsfull points
Assets against salesAssets grew 6.2% a year, sales 4.7%
75
12%
-2%
1.5%
0 pointsfull points

Cycle position

12% of the score

100median 62

Today's operating margin of 4.7% is 0.46x its normal 10%: near a trough. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
0.5x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 4.7%

Balance sheet

8% of the score

53median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDA2.4x a year of EBITDA
52
4.5x
0.5x
2.4x
0 pointsfull points
Interest coverOperating profit covers interest 7x
55
1.5x
12x
7.3x
0 pointsfull points

Earnings quality

6% of the score

84median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 1.52x profit over 3 years
100
0.7x
1x
1.3x
1.5x
0 pointsfull points
AccrualsCash ran ahead of profit by 2.7% of assets
74
8%
0%
-8%
-2.7%
0 pointsfull points
Beneish M-score-2.60
80
-1.50
-1.78
-2.22
-3.00
-2.60
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2026-07-26, latest annual report FY2025.