Hormel Foods (STU:HO7) ROCE %: 7.68% (As of Apr. 2026)


STU:HO7 Hormel Foods Corp STU:HO7
67 GF Score
Price €22.43
GF Value €27.41
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Hormel Foods ROCE %?

Hormel Foods STU:HO7 +3.22% 67 ROCE % is 7.68% as of Apr. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hormel Foods's annualized ROCE % for the quarter that ended in Apr. 2026 was 7.68%.

Hormel Foods  (STU:HO7) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hormel Foods ROCE % Related Terms

Hormel Foods ROCE % Historical Data

* Premium members only.

The historical data trend for Hormel Foods's ROCE % 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 ROCE % Chart

Hormel Foods Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.95 12.52 9.13 9.49 5.96

Hormel Foods Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.94 8.29 -0.07 8.41 7.68
STU:HO7
67GF Score
Hormel Foods Corp STU:HO7
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hormel Foods ROCE % Calculation

Hormel Foods's annualized ROCE % for the fiscal year that ended in Oct. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=636.937/( ( (12333.081 - 1284.556) + (11504.689 - 1186.104) )/ 2 )
=636.937/( (11048.525+10318.585)/ 2 )
=636.937/10683.555
=5.96 %

Hormel Foods's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=772.528/( ( (11332.284 - 1083.252) + (11409.365 - 1541.386) )/ 2 )
=772.528/( ( 10249.032 + 9867.979 )/ 2 )
=772.528/10058.5055
=7.68 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 7.68% mean?
Hormel Foods (STU:HO7) has a ROCE % of 7.68% as of Apr. 2026.
Is Hormel Foods' ROCE % too high?
Hormel Foods' current ROCE % is 7.68%. The Consumer Packaged Goods industry median ROCE % is 8.78. Hormel Foods' value of 7.68% is 12.5% below this industry median. 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' ROCE % compare to MKC and JBS?
Hormel Foods' ROCE % of 7.68% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. Hormel Foods' value of 7.68% is 12.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current ROCE % of 7.68% is 12.5% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current ROCE % is 7.68%. 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 ROCE % is 7.68% and 12.5% below the Consumer Packaged Goods industry median of 8.78. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Hormel Foods (STU:HO7), the current ROCE % is 7.68% 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:

  • ROCE %: 7.68%
  • GF Value™: €27.41 vs. price of €22.43 (18.2% below fair value)
  • GF Score™: 67/100 with 5 warning signs
  • Industry Position: 12.5% below the Consumer Packaged Goods median

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.

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.
67GF Score

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

€22.43
Price
€27.41
GF Value