Hormel FoodsHRL +1.88%64 Current Ratio is 1.94 as of Apr. 2026, which is 13% below its 10-year median of 2.24. GuruFocus rates HRL with a GF Score™ of 64/100 and a GF Value™ of $31.22 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,988 Consumer Packaged Goods companies, Hormel Foods ranks better than 56.39% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Hormel Foods's current ratio for the quarter that ended in Apr. 2026 was 1.94.
Hormel Foods has a current ratio of 1.94. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hormel Foods's Current Ratio or its related term are showing as below:
HRL'
s Current Ratio Range Over the Past 10 Years
Min: 1.4 Med: 2.24 Max: 2.99
Current: 1.94
During the past 13 years, Hormel Foods's highest Current Ratio was 2.99. The lowest was 1.40. And the median was 2.24.
HRL's Current Ratio is ranked better than 56.39% of 1988
companies
in the Consumer Packaged Goods industry
Industry Median: 1.73
vs HRL: 1.94
Hormel Foods (NYSE:HRL) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Hormel Foods Current Ratio Related Terms
Hormel Foods Current Ratio Historical Data
* Premium members only.
The historical data trend for Hormel Foods's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Packaged Foods subindustry, Hormel Foods's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hormel Foods Current Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hormel Foods's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hormel Foods (HRL) has a Current Ratio of 1.94 as of Apr. 2026. This is 13% below median its historical median of 2.24. Over the past decade, Hormel Foods' Current Ratio has ranged from 1.40 to 2.99. According to the industry distribution chart, Hormel Foods ranks #867 out of 1988 companies in the Consumer Packaged Goods industry, placing it in the top 43.6%.
Is Hormel Foods' Current Ratio too high?
Hormel Foods' current Current Ratio of 1.94 is 13% below median its 10-year median of 2.24. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 2.99. The Consumer Packaged Goods industry median Current Ratio is 1.73. Hormel Foods' value of 1.94 is 12.1% above this industry median. Based on the distribution chart, Hormel Foods ranks #867 out of 1988 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Hormel Foods has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hormel Foods' Current Ratio compare to MKC and JBS?
According to the Consumer Packaged Goods industry distribution chart, Hormel Foods ranks #867 out of 1988 companies for Current Ratio. This puts Hormel Foods in the upper half of its industry. The industry median Current Ratio is 1.73. Hormel Foods' value of 1.94 is 12.1% above this benchmark. Historically, Hormel Foods' own Current Ratio has ranged from 1.40 to 2.99 over the past decade. While the company's 10-year median is 2.24 vs. the industry median of 1.73, Hormel Foods has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Consumer Packaged Goods company?
The median Current Ratio among Consumer Packaged Goods companies is 1.73, based on 1,988 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current Current Ratio of 1.94 is 12.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median Current Ratio is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current Current Ratio is 1.94, which is 13% below median its own 10-year median of 2.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hormel Foods stock overvalued right now?
Based on GuruFocus' analysis, Hormel Foods (HRL) is currently considered Modestly Undervalued. The stock's GF Value™ is $31.22, compared to a current price of $26.51 — trading 15.1% below its estimated fair value. The current Current Ratio is 1.94, which is 13% below median its 10-year median of 2.24 and 12.1% above the Consumer Packaged Goods industry median of 1.73. Hormel Foods' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Hormel Foods (HRL), the current Current Ratio is 1.94 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hormel Foods (HRL) Overvalued in 2026?
Based on GuruFocus' analysis, Hormel Foods stock appears to be undervalued.
The current stock price of $26.51 is trading 15.1% below its estimated GF Value™ of $31.22.
GuruFocus considers Hormel Foods to be Modestly Undervalued.
Key valuation signals for HRL:
Current Ratio: 1.94 (13% below median its 10-year median of 2.24)
GF Value™: $31.22 vs. price of $26.51 (15.1% below fair value)
Industry Position: 12.1% above the Consumer Packaged Goods median (#867 of 1988)
No single metric tells the full story. See the HRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and became a branded food company. The firm sells its wares through multiple channels, including US retail (61.6% of fiscal 2025 sales), US foodservice (32.6%), and international (5.9%). By product, 73% of fiscal 2025 sales were from perishable food and 27% from shelf-stable. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.
64GF Score
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