HRL

VALUE TRAP?

Hormel Foods Corporation

Consumer Defensive · Rank #169 · Analyzed Jul 13, 2026

$24.73

Current Price

$35.27

Intrinsic Value

+42.6%

Upside/Downside

3.5/10

Score

2/5

Quality

Analysis Summary

Valuation Consensus1/3 methods agree

Quality Score2/5.0

Framework RatingVALUE TRAP?

Price vs Intrinsic ValueUndervalued by 42.6%

Fair Value Range

Low$1.95

Base (IV)$35.27

High$41.77

Entry Points

Conservative$1.37

Moderate$1.95

Aggressive$24.69

⚠️ Warnings

Cheap (+43%) but low quality (2.0/5) — possible value trap; cheapness may be deserved

Quality & Moat Breakdown

Return on Equity5.8% → 0/1.0

Debt LevelD/E 4 → 1.0/1.0

Revenue QualityGrowth 3.2%, margin Δ-1.9% +recovery → 1.0/1.0

Moat Strength0.5/5 → 0/1.0

Profit Margins3.8% → 0/1.0

Methodology

This analysis uses a unified valuation framework combining three methods, Discounted Cash Flow (3-scenario), Earnings Power Value, and Asset Valuation, with a quality scoring overlay. A stock needs 2/3 valuation methods to agree and a quality score ≥ 3.5/5 for a BUY rating.

Learn how this framework works →

This is a personal analysis tool, not financial advice. Do your own research before making investment decisions.