Hormel FoodsSTU:HO7 +3.22%67 Operating Margin % is 6.72% as of Apr. 2026, which is 37% below its 10-year median of 10.70. GuruFocus rates STU:HO7 with a GF Score™ of 67/100 and a GF Value™ of €27.41 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Hormel Foods ranks better than 60.07% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hormel Foods's Operating Income for the
three
months ended in Apr. 2026 was €171 Mil. Hormel Foods's Revenue for the
three
months ended in Apr. 2026 was €2,542 Mil. Therefore, Hormel Foods's Operating Margin % for the quarter that ended in Apr. 2026 was 6.72%.
Warning Sign:
Hormel Foods Corp operating margin has been in a 5-year decline. The average rate of decline per year is -6.9%.
The historical rank and industry rank for Hormel Foods's Operating Margin % or its related term are showing as below:
STU:HO7'
s Operating Margin % Range Over the Past 10 Years
Min: 7.18 Med: 10.7 Max: 13.51
Current: 7.18
STU:HO7's Operating Margin % is ranked better than 60.07% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs STU:HO7: 7.18
Hormel Foods's 5-Year Average Operating Margin % Growth Rate was -6.90% per year.
Hormel Foods's Operating Income for the
three
months ended in Apr. 2026 was €171 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €751 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Hormel Foods Operating Margin % Related Terms
Hormel Foods Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hormel Foods's Operating Margin % 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.
STU:HO7 vs MKC, JBS, SJM: Operating Margin % Comparison
For the Packaged Foods subindustry, Hormel Foods's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hormel Foods's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Hormel Foods's Operating Margin % for the fiscal year that ended in Oct. 2025 is calculated as
* 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 (STU:HO7) has a Operating Margin % of 6.72% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hormel Foods and its competitors. This is 37% below median its historical median of 10.70. Over the past decade, Hormel Foods' Operating Margin % has ranged from 7.18 to 13.51. According to the industry distribution chart, Hormel Foods ranks #779 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 39.9%.
Is Hormel Foods' Operating Margin % too high?
Hormel Foods' current Operating Margin % of 6.72% is 37% below median its 10-year median of 10.70. Over the past 10 years, this metric has ranged from a low of 7.18 to a high of 13.51. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Hormel Foods' value of 6.72% is 27.8% above this industry median. Based on the distribution chart, Hormel Foods ranks #779 out of 1951 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Hormel Foods has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hormel Foods' Operating Margin % compare to MKC and JBS?
According to the Consumer Packaged Goods industry distribution chart, Hormel Foods ranks #779 out of 1951 companies for Operating Margin %. This puts Hormel Foods in the upper half of its industry. The industry median Operating Margin % is 5.26. Hormel Foods' value of 6.72% is 27.8% above this benchmark. Historically, Hormel Foods' own Operating Margin % has ranged from 7.18 to 13.51 over the past decade. While the company's 10-year median is 10.70 vs. the industry median of 5.26, 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 Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current Operating Margin % of 6.72% is 27.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Hormel Foods and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current Operating Margin % is 6.72%, which is 37% below median its own 10-year median of 10.70. 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 (STU:HO7) is currently considered Modestly Undervalued. The stock's GF Value™ is €27.41, compared to a current price of €22.43 — trading 18.2% below its estimated fair value. The current Operating Margin % is 6.72%, which is 37% below median its 10-year median of 10.70 and 27.8% above the Consumer Packaged Goods industry median of 5.26. Hormel Foods' overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Hormel Foods (STU:HO7), the current Operating Margin % is 6.72% 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 (STU:HO7) Overvalued in 2026?
Based on GuruFocus' analysis, Hormel Foods stock appears to be undervalued.
The current stock price of €22.43 is trading 18.2% below its estimated GF Value™ of €27.41.
GuruFocus considers Hormel Foods to be Modestly Undervalued.
Key valuation signals for STU:HO7:
Operating Margin %: 6.72% (37% below median its 10-year median of 10.70)
GF Value™: €27.41 vs. price of €22.43 (18.2% below fair value)
Industry Position: 27.8% above the Consumer Packaged Goods median (#779 of 1951)
No single metric tells the full story. See the STU:HO7 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.
67GF Score
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