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Hormel Foods: The Headwinds Are Likely Temporary

Apr. 06, 2023 4:24 PM ETHormel Foods Corporation (HRL)4 Comments
Bela Lakos profile picture
Bela Lakos


  • Hormel's profitability and efficiency have been gradually declining over the past years.
  • On the other hand, the firm has remained strong from a liquidity point of view, as both the current and the quick ratios are above 1.
  • The macroeconomic challenges, along with the recent outbreak of the avian flu, have been all negatively impacting HRL's financial performance lately.
  • We, however, believe that these headwinds are temporary.
  • For these reasons, we maintain our "buy" rating.

Sales Of Low Cost Canned Meat Spam On The Rise Amid Rising Food Cost

David McNew

Hormel Foods Corporation (NYSE:HRL) develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.

This year, we have already published three articles on Hormel, rating the firm's

This article was written by

Bela Lakos profile picture
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

Dr. Tan profile picture
I view this as an opportunity. I think they need to create a new product they have distribution and sales.
SXhunga4_2355 profile picture
Interesting about:
This year, we have already published three articles on Hormel, rating the firm's stock as "buy" each time. The stock has not been performing particularly well, however, and it has declined substantially in March, after Argus downgraded the stock, due to a weak earnings outlook. They have also made references to the relative valuation of the stock at the current price levels.
Old Professor profile picture
"The company pays a safe and sustainable dividend, as they have done so in each of the last 21 years."

Hormel has paid "a safe and sustainable dividend" for a lot longer than 21 years. In fact, it has increased its annual dividend every year for consecutive 57 years, making it a "Dividend King."
wam350 profile picture
I will continue to add to my position and enjoy the turnaround when it comes.
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