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Hormel FoodsHRL +2.40%67 5-Year Yield-on-Cost % is 5.77 as of Jul. 15, 2026, which is 125% above its 10-year median of 2.57. GuruFocus rates HRL with a GF Score™ of 67/100 and a GF Value™ of $31.24 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,170 Consumer Packaged Goods companies, Hormel Foods ranks better than 72.14% on this metric.
Hormel Foods's yield on cost for the quarter that ended in Apr. 2026 was 5.77.
The historical rank and industry rank for Hormel Foods's 5-Year Yield-on-Cost % or its related term are showing as below:
HRL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.82 Med: 2.57 Max: 7.4
Current: 5.77
During the past 13 years, Hormel Foods's highest Yield on Cost was 7.40. The lowest was 1.82. And the median was 2.57.
HRL's 5-Year Yield-on-Cost % is ranked better than 72.14% of 1170
companies
in the Consumer Packaged Goods industry
Industry Median: 3.415
vs HRL: 5.77
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Hormel Foods 5-Year Yield-on-Cost % Related Terms
HRL vs MKC, JBS, SJM: 5-Year Yield-on-Cost % Comparison
For the Packaged Foods subindustry, Hormel Foods's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Hormel Foods's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Hormel Foods is calculated as
Hormel Foods (HRL) has a 5-Year Yield-on-Cost % of 5.77 as of Jul. 15, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hormel Foods and its competitors. This is 125% above median its historical median of 2.57. Over the past decade, Hormel Foods' 5-Year Yield-on-Cost % has ranged from 1.82 to 7.40. According to the industry distribution chart, Hormel Foods ranks #326 out of 1170 companies in the Consumer Packaged Goods industry, placing it in the top 27.9%.
Is Hormel Foods' 5-Year Yield-on-Cost % too high?
Hormel Foods' current 5-Year Yield-on-Cost % of 5.77 is 125% above median its 10-year median of 2.57. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 7.40. The Consumer Packaged Goods industry median 5-Year Yield-on-Cost % is 3.42. Hormel Foods' value of 5.77 is 69% above this industry median. Based on the distribution chart, Hormel Foods ranks #326 out of 1170 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' 5-Year Yield-on-Cost % compare to MKC and JBS?
According to the Consumer Packaged Goods industry distribution chart, Hormel Foods ranks #326 out of 1170 companies for 5-Year Yield-on-Cost %. This puts Hormel Foods in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.42. Hormel Foods' value of 5.77 is 69% above this benchmark. Historically, Hormel Foods' own 5-Year Yield-on-Cost % has ranged from 1.82 to 7.40 over the past decade. While the company's 10-year median is 2.57 vs. the industry median of 3.42, 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 5-Year Yield-on-Cost % for a Consumer Packaged Goods company?
The median 5-Year Yield-on-Cost % among Consumer Packaged Goods companies is 3.42, based on 1,170 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hormel Foods's current 5-Year Yield-on-Cost % of 5.77 is 69% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hormel Foods and its competitors. For the Consumer Packaged Goods industry, the median 5-Year Yield-on-Cost % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hormel Foods's current 5-Year Yield-on-Cost % is 5.77, which is 125% above median its own 10-year median of 2.57. 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 $31.24, compared to a current price of $25.41 — trading 18.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.77, which is 125% above median its 10-year median of 2.57 and 69% above the Consumer Packaged Goods industry median of 3.42. Hormel Foods' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Hormel Foods (HRL), the current 5-Year Yield-on-Cost % is 5.77 as of Jul. 15, 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 $25.41 is trading 18.7% below its estimated GF Value™ of $31.24.
GuruFocus considers Hormel Foods to be Modestly Undervalued.
Key valuation signals for HRL:
5-Year Yield-on-Cost %: 5.77 (125% above median its 10-year median of 2.57)
GF Value™: $31.24 vs. price of $25.41 (18.7% below fair value)
Industry Position: 69% above the Consumer Packaged Goods median (#326 of 1170)
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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