Hormel FoodsHRL +1.84%64 Interest Coverage is 10.08 as of Apr. 2026, which is 70% below its 10-year median of 33.89. 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 1,510 Consumer Packaged Goods companies, Hormel Foods ranks better than 54.24% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Hormel Foods's
Operating Income
for the
three
months ended in Apr. 2026 was $200 Mil. Hormel Foods's Interest Expense for the
three
months ended in Apr. 2026 was $-20 Mil.
Hormel Foods's interest coverage for the quarter that ended in Apr. 2026 was 10.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hormel Foods's Interest Coverage or its related term are showing as below:
HRL'
s Interest Coverage Range Over the Past 10 Years
Min: 11.17 Med: 33.89 Max: 99.93
Current: 11.17
HRL's Interest Coverage is ranked better than 54.24% of 1510
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs HRL: 11.17
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Hormel Foods Interest Coverage Related Terms
Hormel Foods Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hormel Foods's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HRL vs MKC, JBS, SJM: Interest Coverage Comparison
For the Packaged Foods subindustry, Hormel Foods's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hormel Foods's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 10.08 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hormel Foods and its competitors. This is 70% below median its historical median of 33.89. Over the past decade, Hormel Foods' Interest Coverage has ranged from 11.17 to 99.93. According to the industry distribution chart, Hormel Foods ranks #691 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 45.8%.
Is Hormel Foods' Interest Coverage too high?
Hormel Foods' current Interest Coverage of 10.08 is 70% below median its 10-year median of 33.89. Over the past 10 years, this metric has ranged from a low of 11.17 to a high of 99.93. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Hormel Foods' value of 10.08 is 16.7% above this industry median. Based on the distribution chart, Hormel Foods ranks #691 out of 1510 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' Interest Coverage compare to MKC and JBS?
According to the Consumer Packaged Goods industry distribution chart, Hormel Foods ranks #691 out of 1510 companies for Interest Coverage. This puts Hormel Foods in the upper half of its industry. The industry median Interest Coverage is 8.64. Hormel Foods' value of 10.08 is 16.7% above this benchmark. Historically, Hormel Foods' own Interest Coverage has ranged from 11.17 to 99.93 over the past decade. While the company's 10-year median is 33.89 vs. the industry median of 8.64, 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 Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current Interest Coverage of 10.08 is 16.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hormel Foods and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current Interest Coverage is 10.08, which is 70% below median its own 10-year median of 33.89. 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 $26.02 — trading 16.7% below its estimated fair value. The current Interest Coverage is 10.08, which is 70% below median its 10-year median of 33.89 and 16.7% above the Consumer Packaged Goods industry median of 8.64. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hormel Foods (HRL), the current Interest Coverage is 10.08 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 $26.02 is trading 16.7% below its estimated GF Value™ of $31.22.
GuruFocus considers Hormel Foods to be Modestly Undervalued.
Key valuation signals for HRL:
Interest Coverage: 10.08 (70% below median its 10-year median of 33.89)
GF Value™: $31.22 vs. price of $26.02 (16.7% below fair value)
Industry Position: 16.7% above the Consumer Packaged Goods median (#691 of 1510)
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
Get the complete analysis for HRL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HRL has been successfully added to your 
