Does HORMEL FOODS CORPORATION have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores HORMEL FOODS CORPORATION (HRL) 36.4 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 24, returns on capital 58, balance-sheet safety 42, capital discipline 17.

Is HRL stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $16.28 per share versus a recent price of $25.39 — 56% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has HRL's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 36.4 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

HORMEL FOODS CORPORATION

HRL · Consumer Staples · $14.0B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power24

Median gross margin 18.2% over 10y, stable.

Returns on capital58

Median ROIC 12.7%, above the 9% hurdle in 70% of years.

Balance-sheet safety42

Net debt/EBITDA 2.2x, interest coverage 9x.

Capital discipline17

Owner earnings -6.7%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

56% above value

Owner earnings (normalized): $806.4M
Est. intrinsic value / share: $16.28
Recent price: $25.39
Discount to value: 56% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

HORMEL FOODS CORPORATION booked $12.1B of revenue in FY2025 in the Consumer Staples sector and kept 15.6% of it as gross profit — a thin-margin business by that measure. After every other cost, 4.0% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $6.8B (FY2008) to $12.1B (FY2025) — about 3.5% a year compounded over 17 years.

It earned 5.1% on invested capital in FY2025, with a median of 17.0% across 14 filed years. The Returns on Capital filter above scores it 58/100.

The balance sheet carried $2.9B of total debt in FY2025 against $478.2M of owner earnings — roughly 6.0 years of owner earnings to retire it all. Balance-Sheet Safety scores it 42/100.

The share count rose 301.4% between FY2008 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 17/100.

Put together: Returns on Capital is the strongest of the four filters (58/100) and Capital Discipline the weakest (17/100), which is how HRL lands at 36/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$12.1B FY2025

Gross marginRevenue kept after cost of goods15.6% FY2025

Return on invested capitalOperating profit on the capital employed5.1% FY2025

Owner earningsCash an owner could take out$478.2M FY2025

Gaps in a line mean that item isn’t in HRL’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale36.4 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — HRL has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Staples context

#36 of 66 scored Consumer Staples companies, ranked by Moat Score.

Nearest peers by Moat Score

#34ZVIA Zevia PBC38.8 out of 100, No moatNo moat
#35MDLZ Mondelez International, Inc.38.0 out of 100, No moatNo moat
#37WVVI WILLAMETTE VALLEY VINEYARDS, INC.35.0 out of 100, No moatNo moat
#38SDSYA SOUTH DAKOTA SOYBEAN PROCESSORS LLC34.9 out of 100, No moatNo moat

Compare HRL with its nearest peers →All Consumer Staples companies on the Index →

Common questions about HRL

Does HORMEL FOODS CORPORATION have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores HORMEL FOODS CORPORATION (HRL) 36.4 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 24, returns on capital 58, balance-sheet safety 42, capital discipline 17.
Is HRL stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $16.28 per share versus a recent price of $25.39 — 56% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has HRL's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 36.4 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell HRL. See the disclaimer.