Hormel FoodsHRL +0.48%67 Return-on-Tangible-Equity is 42.23% as of Apr. 2026, which is 26% below its 10-year median of 57.16. GuruFocus rates HRL with a GF Score™ of 67/100 and a GF Value™ of $31.23 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,872 Consumer Packaged Goods companies, Hormel Foods ranks better than 89.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hormel Foods's annualized net income for the quarter that ended in Apr. 2026 was $630 Mil. Hormel Foods's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $1,491 Mil. Therefore, Hormel Foods's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 42.23%.
The historical rank and industry rank for Hormel Foods's Return-on-Tangible-Equity or its related term are showing as below:
HRL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 32.7 Med: 57.16 Max: 194.56
Current: 32.7
During the past 13 years, Hormel Foods's highest Return-on-Tangible-Equity was 194.56%. The lowest was 32.70%. And the median was 57.16%.
HRL's Return-on-Tangible-Equity is ranked better than 89.48% of 1872
companies
in the Consumer Packaged Goods industry
Industry Median: 7.715
vs HRL: 32.70
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hormel Foods Return-on-Tangible-Equity Related Terms
Hormel Foods Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hormel Foods's Return-on-Tangible-Equity 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.
HRL vs MKC, JBS, SJM: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Hormel Foods's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hormel Foods's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 42.23% mean?
Hormel Foods (HRL) has a Return-on-Tangible-Equity of 42.23% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hormel Foods and its competitors. This is 26% below median its historical median of 57.16. Over the past decade, Hormel Foods' Return-on-Tangible-Equity has ranged from 32.70 to 194.56. According to the industry distribution chart, Hormel Foods ranks #197 out of 1872 companies in the Consumer Packaged Goods industry, placing it in the top 10.5%.
Is Hormel Foods' Return-on-Tangible-Equity too high?
Hormel Foods' current Return-on-Tangible-Equity of 42.23% is 26% below median its 10-year median of 57.16. Over the past 10 years, this metric has ranged from a low of 32.70 to a high of 194.56. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. Hormel Foods' value of 42.23% is 447.4% above this industry median. Based on the distribution chart, Hormel Foods ranks #197 out of 1872 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Equity compare to MKC and JBS?
According to the Consumer Packaged Goods industry distribution chart, Hormel Foods ranks #197 out of 1872 companies for Return-on-Tangible-Equity. This places Hormel Foods in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. Hormel Foods' value of 42.23% is 447.4% above this benchmark. Historically, Hormel Foods' own Return-on-Tangible-Equity has ranged from 32.70 to 194.56 over the past decade. While the company's 10-year median is 57.16 vs. the industry median of 7.72, 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 Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.72, based on 1,872 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current Return-on-Tangible-Equity of 42.23% is 447.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hormel Foods and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current Return-on-Tangible-Equity is 42.23%, which is 26% below median its own 10-year median of 57.16. 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 $31.23, compared to a current price of $25.00 — trading 19.9% below its estimated fair value. The current Return-on-Tangible-Equity is 42.23%, which is 26% below median its 10-year median of 57.16 and 447.4% above the Consumer Packaged Goods industry median of 7.72. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hormel Foods (HRL), the current Return-on-Tangible-Equity is 42.23% 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 $25.00 is trading 19.9% below its estimated GF Value™ of $31.23.
GuruFocus considers Hormel Foods to be Modestly Undervalued.
Key valuation signals for HRL:
Return-on-Tangible-Equity: 42.23% (26% below median its 10-year median of 57.16)
GF Value™: $31.23 vs. price of $25.00 (19.9% below fair value)
Industry Position: 447.4% above the Consumer Packaged Goods median (#197 of 1872)
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.
67GF Score
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