HERSHEY CO/THE (HSY)
US4278661081 - Common Stock
HSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Food Products industry. HSY has an excellent profitability rating, but there are some minor concerns on its financial health. HSY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HSY had positive earnings in the past year.
In the past year HSY had a positive cash flow from operations.
Each year in the past 5 years HSY has been profitable.
HSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.72%, HSY belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 50.44%, HSY belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
HSY has a better Return On Invested Capital (23.88%) than 98.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSY is significantly above the industry average of 7.83%.
The last Return On Invested Capital (23.88%) for HSY is above the 3 year average (21.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 50.44% | ||
| ROIC | 23.88% |
ROA(3y)14.95%
ROA(5y)14.6%
ROE(3y)49.63%
ROE(5y)54.45%
ROIC(3y)21.99%
ROIC(5y)22.23%
1.3 Margins
HSY has a better Profit Margin (18.13%) than 94.57% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
The Operating Margin of HSY (24.82%) is better than 100.00% of its industry peers.
HSY's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.31%, HSY belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
HSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.82% | ||
| PM (TTM) | 18.13% | ||
| GM | 46.31% |
OM growth 3Y0.85%
OM growth 5Y0.61%
PM growth 3Y2.04%
PM growth 5Y1.98%
GM growth 3Y-0.5%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HSY is creating value.
The number of shares outstanding for HSY has been reduced compared to 1 year ago.
Compared to 5 years ago, HSY has less shares outstanding
The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.32 indicates that HSY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.32, HSY belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
HSY has a debt to FCF ratio of 4.05. This is a neutral value as HSY would need 4.05 years to pay back of all of its debts.
The Debt to FCF ratio of HSY (4.05) is better than 76.09% of its industry peers.
HSY has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HSY has a Debt to Equity ratio of 1.24. This is in the lower half of the industry: HSY underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 5.32 |
ROIC/WACC2.85
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HSY may have some problems paying its short term obligations.
With a Current ratio value of 0.97, HSY is not doing good in the industry: 76.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that HSY may have some problems paying its short term obligations.
HSY has a Quick ratio of 0.64. This is in the lower half of the industry: HSY underperforms 70.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
HSY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.38%, which is quite good.
The Earnings Per Share has been growing by 12.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.42% in the past year.
HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.46% yearly.
EPS 1Y (TTM)8.38%
EPS 3Y15.09%
EPS 5Y12.34%
EPS growth Q2Q3.72%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y11.06%
Revenue growth 5Y7.46%
Revenue growth Q2Q8.87%
3.2 Future
Based on estimates for the next years, HSY will show a small growth in Earnings Per Share. The EPS will grow by 4.18% on average per year.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y0.98%
EPS Next 2Y3.28%
EPS Next 3Y4.26%
EPS Next 5Y4.18%
Revenue Next Year2.21%
Revenue Next 2Y2.74%
Revenue Next 3Y2.94%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.34, HSY is valued on the expensive side.
Based on the Price/Earnings ratio, HSY is valued a bit cheaper than 67.39% of the companies in the same industry.
HSY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.15.
The Price/Forward Earnings ratio is 20.24, which indicates a rather expensive current valuation of HSY.
66.30% of the companies in the same industry are more expensive than HSY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, HSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA ratio is in line with the industry average.
HSY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.82 | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HSY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HSY may justify a higher PE ratio.
PEG (NY)21.87
PEG (5Y)1.73
EPS Next 2Y3.28%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, HSY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, HSY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, HSY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 10.20%!
HSY has been paying a dividend for at least 10 years, so it has a reliable track record.
HSY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.2%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
HSY pays out 46.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
HSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.09%
EPS Next 2Y3.28%
EPS Next 3Y4.26%
HERSHEY CO/THE
NYSE:HSY (5/17/2024, 7:04:40 PM)
After market: 207.5 +0.46 (+0.22%)207.04
-1.13 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 20.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)21.87
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 50.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.82% | ||
| PM (TTM) | 18.13% | ||
| GM | 46.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.38%
EPS 3Y15.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.42%
Revenue growth 3Y11.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y