Quality score · HRL · Consumer Staples

Is Hormel Foods Corporation a quality business?

Hormel Foods Corporation (HRL) scored on five pillars from its reported financial statements, and ranked against 71 Consumer Staples companies.

4.9/ 10
Mixed quality
as of October 17, 2026
Profitability
2.9 Weak
Solvency
7.4 Strong
Growth
1.4 Weak
Efficiency
6.5 Average
Predictability
6.9 Average
Strongest pillar: Solvency · Weakest: Growth

Hormel Foods Corporation (HRL) scores 4.9 out of 10 as of , computed from its reported financial statements. That reads as mixed quality. The reading rests on solvency, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Hormel Foods Corporation have an economic moat?

Not enough data

We cannot judge Hormel Foods Corporation yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Hormel Foods Corporation scores

On the filings behind it, Hormel Foods Corporation earns 4.9 out of 10 for business quality as of October 17, 2026. That is mixed quality on our scale. A mixed reading means the strengths and weaknesses roughly cancel out, and the case for the business depends on which pillars you care about most. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Set against 71 Consumer Staples companies, Hormel Foods Corporation lands at the 33rd percentile, just below the middle of the group. The median across the group is 5.8, and the top quarter begins at 6.8, so Hormel Foods Corporation is below the typical company here.

Pillar by pillar

Profitability

Profitability scores 2.9 out of 10, which reads as weak. The median across 71 Consumer Staples companies is 4.7, so Hormel Foods Corporation is well below its peers on this pillar and ranks at the 26th percentile. A low reading here is the first thing to explain: it is the pillar most closely tied to whether the business creates value at all.

Solvency

On solvency, Hormel Foods Corporation scores 7.4, a strong reading. Its peers have a median of 6.9 across 65 Consumer Staples companies, which places it above them, at the 61st percentile. Balance sheet strength like this rarely makes headlines, but it is what lets a company keep investing when credit gets expensive.

Growth

On growth, Hormel Foods Corporation scores 1.4, a weak reading. Its peers have a median of 4.0 across 67 Consumer Staples companies, which places it well below them, at the 14th percentile. When growth is this low the question is whether it is a pause or a trend, and the history behind the filings is the place to look.

Efficiency

On efficiency, Hormel Foods Corporation scores 6.5, an average reading. Its peers have a median of 6.7 across 68 Consumer Staples companies, which places it in line with them, at the 43rd percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.

Predictability

Predictability scores 6.9 out of 10, which reads as average. The median across 71 Consumer Staples companies is 6.1, so Hormel Foods Corporation is above its peers on this pillar and ranks at the 76th percentile. Middling predictability suggests some volatility in the record, enough to read the other pillars with a little caution.

Strongest and weakest pillar

This is a lopsided profile. Solvency scores 7.4 but growth only 1.4, a gap of 6.0 points, so the overall hides a business that is excellent in one respect and weak in another. A solvency lead means the balance sheet is the company’s strongest asset, a cushion that buys time when trading gets harder. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.

What would move the score

Of everything that could lift Hormel Foods Corporation’s score, growth matters most. Bringing it up to the 4.0 median of Consumer Staples companies would take the overall from 4.9 to roughly 5.4. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Hormel Foods Corporation and similar companies

These are the Consumer Staples companies closest to Hormel Foods Corporation in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

2.9 / 10

How much profit the company generates from its capital and sales.

Solvency

7.4 / 10

The company’s ability to service debt and meet its obligations.

Growth

1.4 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.5 / 10

How well assets and earnings convert into cash and output.

Predictability

6.9 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Hormel Foods Corporation a quality business?

On this reading Hormel Foods Corporation scores 4.9 out of 10, which reads as mixed quality. Its strongest pillar is solvency, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Hormel Foods Corporation compare with other Consumer Staples companies?

Hormel Foods Corporation ranks at the 33rd percentile of the 71 Consumer Staples companies Lemma publishes a score for. The median there is 5.8 and the top quarter starts at 6.8, against Hormel Foods Corporation’s 4.9.

What does the HRL quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for HRL are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

All quality scoresConsumer Staples quality rankingConsumer Staples screener

Score any company, not just these.

Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

Free to start · No credit card