Hormel Foods (FRA:HO7) Debt-to-EBITDA : (As of Jul. 2026)

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FRA:HO7 Hormel Foods Corp FRA:HO7
74 GF Score
Price €18.25
GF Value €26.70
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is Hormel Foods Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Hormel Foods's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2026 was €439 Mil. Hormel Foods's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2026 was €2,042 Mil. Hormel Foods's annualized EBITDA for the quarter that ended in Jul. 2026 was €657 Mil. Hormel Foods's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2026 was 3.78.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Hormel Foods's Debt-to-EBITDA or its related term are showing as below:

FRA:HO7' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.17   Med: 1.53   Max: 3.27
Current: 3.27

During the past 13 years, the highest Debt-to-EBITDA Ratio of Hormel Foods was 3.27. The lowest was 0.17. And the median was 1.53.

FRA:HO7's Debt-to-EBITDA is ranked worse than
64.54% of 1571 companies
in the Consumer Packaged Goods industry
Industry Median: 2.11 vs FRA:HO7: 3.27

Hormel Foods  (FRA:HO7) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Hormel Foods Debt-to-EBITDA Related Terms


Hormel Foods Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Hormel Foods's Debt-to-EBITDA 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.

Hormel Foods Debt-to-EBITDA Chart

Hormel Foods Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Debt-to-EBITDA
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Hormel Foods Quarterly Data
Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26 Jul26
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FRA:HO7 vs DAR, SJM, JBS: Debt-to-EBITDA Comparison

For the Packaged Foods subindustry, Hormel Foods's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Hormel Foods's Debt-to-EBITDA falls into.


FRA:HO7
74GF Score
Hormel Foods Corp FRA:HO7
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hormel Foods Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Hormel Foods's Debt-to-EBITDA for the fiscal year that ended in Oct. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(35.842141743199 + 2585.3760180211) / 906.41665659389
=2.89

Hormel Foods's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(439.4715570814 + 2042.0572769545) / 657.0717444812
=3.78

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jul. 2026) EBITDA data.

Is Hormel Foods (FRA:HO7) Overvalued in 2026?

Based on GuruFocus' analysis, Hormel Foods stock appears to be undervalued. The current stock price of €18.25 is trading 31.6% below its estimated GF Value™ of €26.70. GuruFocus considers Hormel Foods to be Significantly Undervalued.

Key valuation signals for FRA:HO7:

  • Debt-to-EBITDA:
  • GF Value™: €26.70 vs. price of €18.25 (31.6% below fair value)
  • GF Score™: 74/100 with 6 warning signs

No single metric tells the full story. See the FRA:HO7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hormel Foods Business Description

Address 1 Hormel Place, Austin, MN, USA, 55912-3680
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.
74GF Score

Get the complete analysis for FRA:HO7

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€18.25
Price
€26.70
GF Value