The business behind the dividend
| Measure | HRL | Median | Formula |
|---|---|---|---|
| Return on equity | 6.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 6.7% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $431.20m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $534.35m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 5.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 4.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.36x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 9.21x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 2.47x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.41x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.77x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 6.1% | 10.1% | 10.3% | 13.3% | 13.0% | 14.1% | 16.5% | 18.1% | 17.2% | 20.0% | 13.3% |
| Return on capital employed | 6.7% | 9.8% | 9.7% | 12.1% | 10.9% | 14.2% | 19.4% | 19.0% | 24.6% | 28.2% | 12.1% |
| Operating margin | 5.9% | 9.0% | 8.9% | 10.5% | 9.9% | 11.5% | 12.6% | 12.4% | 13.9% | 13.9% | 10.5% |
| Net margin | 4.0% | 6.8% | 6.6% | 8.0% | 8.0% | 9.5% | 10.3% | 10.6% | 9.2% | 9.3% | 8.0% |
| Debt to equity | 0.36x | 0.36x | 0.43x | 0.44x | 0.48x | 0.20x | 0.04x | 0.11x | 0.05x | 0.06x | 0.20x |
| Current ratio | 2.47x | 2.32x | 1.43x | 2.47x | 2.08x | 2.38x | 2.14x | 1.80x | 1.92x | 1.93x | 2.08x |
| Cash conversion | 1.77x | 1.57x | 1.32x | 1.13x | 1.10x | 1.24x | 0.94x | 1.23x | 1.22x | 1.17x | 1.22x |
How it compares in consumer staples
Among the 38 consumer staples companies here measured on free cash flow, Hormel Foods pays out less than 3 of them. The median for that group is 65.1%, against this company’s 118.5%.
Closest on free cash flow
- Kenvue (KVUE) 91.8%
- Pepsico (PEP) 99.6%
- Kimberly Clark (KMB) 101.3%
- Sanfilippo John B & Son (JBSS) 130.8%
Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →