HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HSY - US4278661081 - Common Stock
168.52 EUR
+3.58 (+2.17%)
Taking everything into account, HSY scores 6 out of 10 in our fundamental rating. HSY was compared to 63 industry peers in the Food Products industry. HSY scores excellent on profitability, but there are some minor concerns on its financial health. HSY does not seem to be growing, but still is valued 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.
HSY had positive earnings in each of the past 5 years.
In the past 5 years HSY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.01%, HSY belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
With an excellent Return On Equity value of 29.79%, HSY belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.48%, HSY belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSY is significantly above the industry average of 6.78%.
The 3 year average ROIC (23.99%) for HSY is well above the current ROIC(16.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROIC | 16.48% |
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 has a Profit Margin of 11.84%. This is amongst the best in the industry. HSY outperforms 92.06% of its industry peers.
In the last couple of years the Profit Margin of HSY has grown nicely.
HSY has a better Operating Margin (17.27%) than 95.24% of its industry peers.
HSY's Operating Margin has improved in the last couple of years.
HSY has a Gross Margin of 37.74%. This is comparable to the rest of the industry: HSY outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of HSY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
HSY has an Altman-Z score of 4.60. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
HSY's Altman-Z score of 4.60 is amongst the best of the industry. HSY outperforms 93.65% of its industry peers.
HSY has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as HSY would need 3.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.05, HSY belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
HSY has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HSY (1.07) is worse than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.6 |
ROIC/WACC2.03
WACC8.11%
2.3 Liquidity
HSY has a Current Ratio of 1.36. This is a normal value and indicates that HSY is financially healthy and should not expect problems in meeting its short term obligations.
HSY's Current ratio of 1.36 is fine compared to the rest of the industry. HSY outperforms 60.32% of its industry peers.
A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, HSY perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for HSY have decreased strongly by -16.21% in the last year.
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.
Looking at the last year, HSY shows a small growth in Revenue. The Revenue has grown by 4.71% in the last year.
The Revenue has been growing slightly by 7.00% on average over the past years.
EPS 1Y (TTM)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
3.2 Future
The Earnings Per Share is expected to grow by 2.75% on average over the next years.
HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 27.01, the valuation of HSY can be described as expensive.
63.49% of the companies in the same industry are cheaper than HSY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HSY is valued at the same level.
A Price/Forward Earnings ratio of 27.91 indicates a quite expensive valuation of HSY.
HSY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HSY is more expensive than 68.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HSY to the average of the S&P500 Index (24.04), we can say HSY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 27.91 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HSY is more expensive than 71.43% 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 | 22.6 | ||
| EV/EBITDA | 17.4 |
4.3 Compensation for Growth
HSY has an outstanding profitability rating, which may justify a higher PE ratio.
HSY's earnings are expected to decrease with -4.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.67
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 2.97%.
HSY's Dividend Yield is a higher than the industry average which is at 2.42.
Compared to an average S&P500 Dividend Yield of 1.92, HSY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 79.75% of its income as dividend. This is not a sustainable payout ratio.
HSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.75%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
FRA:HSY (1/13/2026, 7:00:00 PM)
168.52
+3.58 (+2.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap34.17B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target166.98 (-0.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend4.58
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.61%
Min EPS beat(2)20.39%
Max EPS beat(2)20.83%
EPS beat(4)4
Avg EPS beat(4)14.92%
Min EPS beat(4)6.26%
Max EPS beat(4)20.83%
EPS beat(8)6
Avg EPS beat(8)6.32%
EPS beat(12)10
Avg EPS beat(12)6.89%
EPS beat(16)14
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)1.19%
Max Revenue beat(2)2.62%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)2.62%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)7
Avg Revenue beat(12)-0.53%
Revenue beat(16)11
Avg Revenue beat(16)1.12%
PT rev (1m)2.82%
PT rev (3m)13.7%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 27.91 | ||
| P/S | 3.48 | ||
| P/FCF | 22.6 | ||
| P/OCF | 17.43 | ||
| P/B | 8.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.4 |
EPS(TTM)6.24
EY3.7%
EPS(NY)6.04
Fwd EY3.58%
FCF(TTM)7.46
FCFY4.42%
OCF(TTM)9.67
OCFY5.74%
SpS48.46
BVpS19.25
TBVpS-1.63
PEG (NY)N/A
PEG (5Y)2.67
Graham Number51.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROCE | 19.16% | ||
| ROIC | 16.48% | ||
| ROICexc | 18.51% | ||
| ROICexgc | 39.09% | ||
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% | ||
| FCFM | 15.39% |
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%
ROICexgc growth 3Y3.23%
ROICexgc 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-Score4
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 105.99% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 9.57 | ||
| Cash Conversion | 92.48% | ||
| Profit Quality | 130% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.6 |
F-Score4
WACC8.11%
ROIC/WACC2.03
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)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.41%
EBIT growth 1Y-21.53%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-6.42%
EBIT Next 3Y5.6%
EBIT Next 5Y6.23%
FCF growth 1Y8.78%
FCF growth 3Y6.4%
FCF growth 5Y5.9%
OCF growth 1Y-1.75%
OCF growth 3Y6.52%
OCF growth 5Y7.49%
HERSHEY CO/THE / HSY.DE FAQ
What is the fundamental rating for HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSY.DE.
Can you provide the valuation status for HERSHEY CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to HERSHEY CO/THE (HSY.DE). This can be considered as Overvalued.
What is the profitability of HSY stock?
HERSHEY CO/THE (HSY.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for HSY stock?
The Price/Earnings (PE) ratio for HERSHEY CO/THE (HSY.DE) is 27.01 and the Price/Book (PB) ratio is 8.75.
Can you provide the expected EPS growth for HSY stock?
The Earnings per Share (EPS) of HERSHEY CO/THE (HSY.DE) is expected to decline by -35.44% in the next year.