Is HORMEL FOODS CORP /DE/ (HRL) Halal?
Shariah Screening — 5 Standards
Based on financial data from October 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 21.3% / 30% | 5.2% / 30% | 6.6% / 30% | 0.2% / 5% | ✓ HALAL |
| DJIM | 21.3% / 33% | 5.2% / 33% | 6.6% / 33% | 0.2% / 5% | ✓ HALAL |
| MSCI | 21.3% / 33% | 5.3% / 33% | 6.6% / 33% | 0.2% / 5% | ✓ HALAL |
| S&P | 21.3% / 33% | 5.2% / 33% | 6.6% / 33% | 0.2% / 5% | ✓ HALAL |
| FTSE | 21.3% / 33% | 5.3% / 33% | 6.6% / 50% | 0.2% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.6% | |
| Operating Margin | 7.4% | |
| Net Margin | 4.0% | |
| Return on Equity (ROE) | 6.1% | |
| Return on Assets (ROA) | 4.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $845M |
| Free Cash Flow | $534M |
| Total Debt | $2.9B |
| Debt-to-Equity | 35.9 |
| Current Ratio | 2.7 |
| Total Assets | $13.4B |
Price & Trading
| Last Close | $22.85 |
| 50-Day MA | $24.08 |
| 200-Day MA | $25.37 |
| Avg Volume | 4.6M |
| Beta | 0.3 |
|
52-Week Range
$21.03
| |
About HORMEL FOODS CORP /DE/ (HRL)
Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products, including resh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration; and shelf-stable products, such as canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. It sells its products under the HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BACON 1, BLACK LABEL, BREAD READY, BURKE, CAFÉ H, CERATTI, CHI-CHI'S, COLUMBUS, COMPLEATS, CORN NUTS, CURE 81, DAN'S PRIZE, DI LUSSO, DINTY MOORE, DON MIGUEL, DOÑA MARIA, EMBASA, FAST N EASY, FIRE BRAISED, FONTANINI, HERDEZ, HORMEL GATHERINGS, HOUSE OF TSANG, JENNIE-O, JUSTIN'S, LA VICTORIA, LAYOUT, LLOYD'S, MARY KITCHEN, MR. PEANUT, NATURAL CHOICE, NUT-RITION, OLD SMOKEHOUSE, OVEN READY, PILLOW PACK, PLANTERS, ROSA GRANDE, SADLER'S SMOKEHOUSE, SKIPPY, SPAM, SQUARE TABLE, SPECIAL RECIPE, VALLEY FRESH, and WHOLLY brands through sales personnel, independent brokers, and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.
Purification Calculator
As a halal stock with 0.20% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is HORMEL FOODS CORP /DE/ (HRL) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HORMEL FOODS CORP /DE/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is HORMEL FOODS CORP /DE/'s debt ratio?
HORMEL FOODS CORP /DE/'s debt ratio is 21.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 21.3%.
Does HORMEL FOODS CORP /DE/ require dividend purification?
Yes, HORMEL FOODS CORP /DE/ has an impermissible income ratio of 0.20%, which means 0.20% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are HORMEL FOODS CORP /DE/'s key financial metrics?
HORMEL FOODS CORP /DE/ has a market capitalization of $12.7B, trailing P/E ratio of 25.9, and revenue of $12.1B. The company maintains a gross margin of 15.6% and a net margin of 4.0%. Return on equity stands at 6.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.