HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
FRA:HSY - Deutsche Boerse Ag - US4278661081 - Common Stock - Currency: EUR
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY against 57 industry peers in the Food Products industry. HSY gets an excellent profitability rating and is at the same time showing great financial health properties. HSY is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HSY was profitable.
In the past year HSY had a positive cash flow from operations.
Each year in the past 5 years HSY has been profitable.
In the past 5 years HSY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HSY (17.16%) is better than 98.28% of its industry peers.
HSY's Return On Equity of 47.11% is amongst the best of the industry. HSY outperforms 98.28% of its industry peers.
HSY has a Return On Invested Capital of 25.49%. This is amongst the best in the industry. HSY outperforms 100.00% of its industry peers.
HSY had an Average Return On Invested Capital over the past 3 years of 23.99%. This is significantly above the industry average of 7.01%.
The last Return On Invested Capital (25.49%) for HSY is above the 3 year average (23.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.16% | ||
| ROE | 47.11% | ||
| ROIC | 25.49% |
ROA(3y)15.94%
ROA(5y)15.2%
ROE(3y)47.46%
ROE(5y)50.64%
ROIC(3y)23.99%
ROIC(5y)22.85%
1.3 Margins
HSY's Profit Margin of 19.83% is amongst the best of the industry. HSY outperforms 96.55% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
The Operating Margin of HSY (26.78%) is better than 98.28% of its industry peers.
HSY's Operating Margin has improved in the last couple of years.
HSY's Gross Margin of 47.43% is fine compared to the rest of the industry. HSY outperforms 72.41% of its industry peers.
HSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.78% | ||
| PM (TTM) | 19.83% | ||
| GM | 47.43% |
OM growth 3Y4.4%
OM growth 5Y4.06%
PM growth 3Y6.38%
PM growth 5Y6.61%
GM growth 3Y1.55%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
HSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HSY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HSY has been reduced compared to 5 years ago.
HSY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.02 indicates that HSY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.02, HSY belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.
The Debt to FCF ratio of HSY is 2.65, which is a good value as it means it would take HSY, 2.65 years of fcf income to pay off all of its debts.
HSY has a better Debt to FCF ratio (2.65) than 87.93% of its industry peers.
HSY has a Debt/Equity ratio of 0.95. This is a neutral value indicating HSY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, HSY is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 5.02 |
ROIC/WACC3.07
WACC8.3%
2.3 Liquidity
A Current Ratio of 0.96 indicates that HSY may have some problems paying its short term obligations.
HSY has a worse Current ratio (0.96) than 75.86% of its industry peers.
A Quick Ratio of 0.64 indicates that HSY may have some problems paying its short term obligations.
The Quick ratio of HSY (0.64) is worse than 68.97% of its industry peers.
HSY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
HSY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.29%.
Measured over the past years, HSY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.11% on average per year.
HSY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.33%.
The Revenue has been growing slightly by 7.00% on average over the past years.
EPS 1Y (TTM)-2.29%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%33.17%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%8.67%
3.2 Future
HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.21% yearly.
Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y-32.89%
EPS Next 2Y-15.4%
EPS Next 3Y-6.73%
EPS Next 5Y5.21%
Revenue Next Year2.29%
Revenue Next 2Y2.51%
Revenue Next 3Y2.39%
Revenue Next 5Y3.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.18, HSY is valued on the expensive side.
HSY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HSY is valued a bit cheaper.
The Price/Forward Earnings ratio is 30.06, which means the current valuation is very expensive for HSY.
70.69% of the companies in the same industry are cheaper than HSY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HSY to the average of the S&P500 Index (22.10), we can say HSY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 30.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSY is valued a bit more expensive than 65.52% of the companies in the same industry.
HSY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.87 | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
HSY has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HSY's earnings are expected to decrease with -6.73% in the coming years.
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y-15.4%
EPS Next 3Y-6.73%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 3.04%.
HSY's Dividend Yield is a higher than the industry average which is at 3.35.
HSY's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
On average, the dividend of HSY grows each year by 12.83%, which is quite nice.
Dividend Growth(5Y)12.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HSY pays out 48.84% 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.
DP48.84%
EPS Next 2Y-15.4%
EPS Next 3Y-6.73%
FRA:HSY (3/7/2025, 7:00:00 PM)
174.12
+10.32 (+6.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.36%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap35.24B
Analysts55.15
Price Target157.56 (-9.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend4.91
Dividend Growth(5Y)12.83%
DP48.84%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.34%
Min EPS beat(2)-9.53%
Max EPS beat(2)12.21%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-12.15%
Max EPS beat(4)12.21%
EPS beat(8)6
Avg EPS beat(8)2.8%
EPS beat(12)10
Avg EPS beat(12)5.19%
EPS beat(16)14
Avg EPS beat(16)4.81%
Revenue beat(2)1
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)0.65%
Revenue beat(4)2
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-10.97%
Max Revenue beat(4)3.49%
Revenue beat(8)4
Avg Revenue beat(8)-1.44%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)12
Avg Revenue beat(16)1.88%
PT rev (1m)-6.24%
PT rev (3m)-10.06%
EPS NQ rev (1m)-14.24%
EPS NQ rev (3m)-21.84%
EPS NY rev (1m)-17.59%
EPS NY rev (3m)-23.91%
Revenue NQ rev (1m)-8.9%
Revenue NQ rev (3m)-10.07%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 30.06 | ||
| P/S | 3.42 | ||
| P/FCF | 19.87 | ||
| P/OCF | 15.11 | ||
| P/B | 8.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.96 |
EPS(TTM)8.63
EY4.96%
EPS(NY)5.79
Fwd EY3.33%
FCF(TTM)8.76
FCFY5.03%
OCF(TTM)11.52
OCFY6.62%
SpS50.98
BVpS21.45
TBVpS-1.06
PEG (NY)N/A
PEG (5Y)2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.16% | ||
| ROE | 47.11% | ||
| ROCE | 33.26% | ||
| ROIC | 25.49% | ||
| ROICexc | 27.44% | ||
| ROICexgc | 56.64% | ||
| OM | 26.78% | ||
| PM (TTM) | 19.83% | ||
| GM | 47.43% | ||
| FCFM | 17.19% |
ROA(3y)15.94%
ROA(5y)15.2%
ROE(3y)47.46%
ROE(5y)50.64%
ROIC(3y)23.99%
ROIC(5y)22.85%
ROICexc(3y)25.42%
ROICexc(5y)24.68%
ROICexgc(3y)57.82%
ROICexgc(5y)56.6%
ROCE(3y)30.24%
ROCE(5y)28.38%
ROICexcg growth 3Y3.23%
ROICexcg growth 5Y-4.21%
ROICexc growth 3Y8.1%
ROICexc growth 5Y0.23%
OM growth 3Y4.4%
OM growth 5Y4.06%
PM growth 3Y6.38%
PM growth 5Y6.61%
GM growth 3Y1.55%
GM growth 5Y0.85%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.65 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 133.1% | ||
| Cap/Sales | 5.41% | ||
| Interest Coverage | 16.68 | ||
| Cash Conversion | 73.28% | ||
| Profit Quality | 86.69% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 5.02 |
F-Score7
WACC8.3%
ROIC/WACC3.07
Cap/Depr(3y)151.29%
Cap/Depr(5y)152.21%
Cap/Sales(3y)5.77%
Cap/Sales(5y)5.65%
Profit Quality(3y)93.33%
Profit Quality(5y)97.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.29%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%33.17%
EPS Next Y-32.89%
EPS Next 2Y-15.4%
EPS Next 3Y-6.73%
EPS Next 5Y5.21%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%8.67%
Revenue Next Year2.29%
Revenue Next 2Y2.51%
Revenue Next 3Y2.39%
Revenue Next 5Y3.71%
EBIT growth 1Y16.97%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year9.9%
EBIT Next 3Y7.54%
EBIT Next 5Y6.94%
FCF growth 1Y24.07%
FCF growth 3Y6.4%
FCF growth 5Y5.9%
OCF growth 1Y8.97%
OCF growth 3Y6.52%
OCF growth 5Y7.49%