Hormel Foods Corporation — Earnings Quality Grade F
HRL · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 24 days, change -1 days YoY
AR growth -4.0% vs revenue growth 1.6%
Revenue 1.6%, CFFO -33.3%. Cash follows revenue
Expense Quality
Inventory 10.8% vs COGS 3.2%. Normal
CapEx growth 21.2% is >2x revenue growth 1.6%
SG&A/Gross Profit = 52.7%. Normal
Gross margin 15.6%, change -1.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.77. Profits backed by cash
FCF $0.5B, FCF/NI = 1.12
Accruals ratio = -2.7%. Low accruals
Cash $0.7B covers only 25% of debt $2.9B
Balance Sheet Health
Goodwill+Intangibles $6.6B = 83% of equity. Over 50%
Debt/EBITDA = 2.8x. Healthy
Other assets 4.8% vs revenue 1.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.61 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10