HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HSY - US4278661081 - Common Stock
158.34 EUR
-3.72 (-2.3%)
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY against 61 industry peers in the Food Products industry. While HSY has a great profitability rating, there are some minor concerns on its financial health. HSY has a expensive valuation and it also scores bad on growth.
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.
HSY had positive earnings in each of the past 5 years.
Each year in the past 5 years HSY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
HSY has a better Return On Equity (29.79%) than 90.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.48%, HSY belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HSY is significantly above the industry average of 7.37%.
The last Return On Invested Capital (16.48%) for HSY is well below the 3 year average (23.99%), which needs to be investigated, but indicates that HSY had better years and this may not be a problem.
| 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 better Profit Margin (11.84%) than 88.52% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.27%, HSY belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Operating Margin of HSY has grown nicely.
HSY's Gross Margin of 37.74% is in line compared to the rest of the industry. HSY outperforms 54.10% of its industry peers.
HSY's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HSY is creating value.
HSY has less shares outstanding than it did 1 year ago.
HSY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.51 indicates that HSY is not in any danger for bankruptcy at the moment.
HSY has a Altman-Z score of 4.51. This is amongst the best in the industry. HSY outperforms 90.16% of its industry peers.
The Debt to FCF ratio of HSY is 3.05, which is a good value as it means it would take HSY, 3.05 years of fcf income to pay off all of its debts.
HSY's Debt to FCF ratio of 3.05 is amongst the best of the industry. HSY outperforms 86.89% of its industry peers.
HSY has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
HSY has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: HSY underperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.51 |
ROIC/WACC2.04
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HSY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, HSY is in line with its industry, outperforming 57.38% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
HSY's Quick ratio of 0.83 is in line compared to the rest of the industry. HSY outperforms 45.90% of its industry peers.
| 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.
HSY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.71%.
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
Based on estimates for the next years, HSY will show a small growth in Earnings Per Share. The EPS will grow by 1.22% on average per year.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y1.22%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.25%
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
A Price/Earnings ratio of 25.62 indicates a quite expensive valuation of HSY.
Compared to the rest of the industry, the Price/Earnings ratio of HSY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.59, HSY is valued at the same level.
A Price/Forward Earnings ratio of 26.44 indicates a quite expensive valuation of HSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSY indicates a slightly more expensive valuation: HSY is more expensive than 67.21% of the companies listed in the same industry.
HSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 26.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSY is valued a bit more expensive than 68.85% 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 | 21.41 | ||
| EV/EBITDA | 16.89 |
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)2.54
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, HSY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, HSY pays a bit more dividend than its industry peers.
HSY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 (12/22/2025, 7:00:00 PM)
158.34
-3.72 (-2.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.95%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap32.11B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts65.71
Price Target166.98 (5.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend4.55
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)13.7%
PT rev (3m)13.7%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 26.44 | ||
| P/S | 3.29 | ||
| P/FCF | 21.41 | ||
| P/OCF | 16.51 | ||
| P/B | 8.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.89 |
EPS(TTM)6.18
EY3.9%
EPS(NY)5.99
Fwd EY3.78%
FCF(TTM)7.4
FCFY4.67%
OCF(TTM)9.59
OCFY6.06%
SpS48.07
BVpS19.1
TBVpS-1.61
PEG (NY)N/A
PEG (5Y)2.54
Graham Number51.53
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 | 4.51 |
F-Score4
WACC8.07%
ROIC/WACC2.04
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 5Y1.22%
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 5Y3.25%
EBIT growth 1Y-21.53%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-6.5%
EBIT Next 3Y5.16%
EBIT Next 5Y5.08%
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.
What is the valuation status of HERSHEY CO/THE (HSY.DE) stock?
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.
What is the valuation of HERSHEY CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HERSHEY CO/THE (HSY.DE) is 25.62 and the Price/Book (PB) ratio is 8.29.
What is the financial health of HERSHEY CO/THE (HSY.DE) stock?
The financial health rating of HERSHEY CO/THE (HSY.DE) is 6 / 10.