HRL Falls 13% In A Single Week: How Does It Compare With Others?
Here is how Hormel Foods (HRL) stacks up against its peers in size, valuation, growth and margin.
- HRL’s operating margin of 7.9% is modest, lower than most peers – trailing HSY (19.1%).
- HRL’s revenue growth of 0.6% in the last 12 months is low, lagging HSY, TSN, MKC but outpacing ADM, K.
- HRL’s stock is down 17.9% in last 1 year, and trades at a PE of 18.6; it underperformed HSY, ADM, K, TSN, MKC.
As a quick background, Hormel Foods provides a wide range of fresh, frozen, refrigerated, and shelf-stable meat, nut, and food products across grocery, refrigerated, turkey, and international segments.
| HRL | HSY | ADM | K | TSN | MKC | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 14.0 | 37.3 | 30.3 | 27.5 | 20.2 | 18.9 |
| Revenue ($ Bil) | 12.1 | 11.3 | 82.8 | 12.6 | 54.1 | 6.7 |
| PE Ratio | 18.6 | 24.4 | 27.6 | 19.9 | 25.7 | 24.4 |
| LTM Revenue Growth | 0.6% | 2.5% | -6.8% | -2.7% | 2.0% | 0.9% |
| LTM Operating Margin | 7.9% | 19.1% | 1.9% | 15.1% | 3.3% | 16.0% |
| LTM FCF Margin | 5.2% | 14.0% | 5.0% | 6.8% | 2.4% | 8.2% |
| 12M Market Return | -17.9% | -1.0% | 6.2% | 1.5% | -8.4% | -8.9% |
Why does this matter? HRL just went down -13% in a week – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell HRL Stock to see if Hormel Foods is really a falling knife.
While peer comparison is critical Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risks while giving upside exposure.
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| HRL | 0.6% | -1.6% | -2.8% | 9.4% |
| HSY | 2.5% | 0.3% | 7.2% | 16.1% |
| ADM | -6.8% | -8.9% | -7.5% | 19.1% |
| K | -2.7% | -2.8% | 3.7% | 7.7% |
| TSN | 2.0% | 0.8% | -0.8% | 13.2% |
| MKC | 0.9% | 0.9% | 4.9% | 0.5% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| HRL | 7.9% | 8.5% | 8.7% | 10.3% |
| HSY | 19.1% | 26.1% | 22.9% | 21.7% |
| ADM | 1.9% | 2.4% | 4.3% | 4.1% |
| K | 15.1% | 14.7% | 11.5% | 9.6% |
| TSN | 3.3% | 2.6% | 0.7% | 8.3% |
| MKC | 16.0% | 15.9% | 15.4% | 14.4% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| HRL | 18.6 | 21.4 | 22.1 | 24.8 |
| HSY | 24.4 | 15.5 | 20.5 | 28.9 |
| ADM | 27.6 | 13.8 | 11.2 | 12.0 |
| K | 19.9 | 20.7 | 20.1 | 25.4 |
| TSN | 25.7 | 25.4 | -29.4 | 6.9 |
| MKC | 24.4 | 26.0 | 27.0 | 32.6 |
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.