Hormel Foods Sells Brazilian Ceratti Unit as Shares Hit 17.4 P/E Lows
HRL•HRL•HRL•HRL•Hormel Foods will sell its Brazilian Ceratti unit to Zanchetta Alimentos within weeks, with negligible effect on adjusted fiscal 2026 results. Shares sit near multi-year lows at a 17.4 P/E, 0.4 debt/equity and 10x interest coverage, despite 60 years of consecutive dividend raises.
Hormel Foods has entered into a definitive agreement to divest its Brazilian Ceratti business to Zanchetta Alimentos. The transaction is expected to close in the coming weeks, subject to regulatory approval, and is projected to have minimal impact on adjusted fiscal 2026 financial results as operations continue normally for employees and customers.
Despite the divestiture, Hormel shares remain near multi-year lows with a price-to-earnings ratio of 17.4, a debt-to-equity ratio of 0.4 and an interest coverage ratio around 10x. The company has raised its dividend for 60 consecutive years, underscoring its long-standing commitment to shareholder returns.
