HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - FRA:HSY - US4278661081 - Common Stock
146.74 EUR
+3.06 (+2.13%)
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY against 58 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 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.
HSY had a positive operating cash flow in the past year.
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
HSY has a better Return On Assets (11.80%) than 94.83% of its industry peers.
With an excellent Return On Equity value of 35.18%, HSY belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.35%, HSY belongs to the best of the industry, outperforming 100.00% 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 7.46%.
The last Return On Invested Capital (18.35%) 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 | 11.8% | ||
| ROE | 35.18% | ||
| ROIC | 18.35% |
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
With an excellent Profit Margin value of 15.32%, HSY belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Profit Margin of HSY has grown nicely.
The Operating Margin of HSY (21.57%) is better than 96.55% of its industry peers.
In the last couple of years the Operating Margin of HSY has grown nicely.
HSY has a Gross Margin of 42.57%. This is in the better half of the industry: HSY outperforms 63.79% 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 | 21.57% | ||
| PM (TTM) | 15.32% | ||
| GM | 42.57% |
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.
The number of shares outstanding for HSY has been reduced compared to 1 year ago.
The number of shares outstanding for HSY has been reduced compared to 5 years ago.
Compared to 1 year ago, HSY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.20 indicates that HSY is not in any danger for bankruptcy at the moment.
HSY has a better Altman-Z score (4.20) than 93.10% of its industry peers.
The Debt to FCF ratio of HSY is 3.25, which is a good value as it means it would take HSY, 3.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.25, HSY belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
HSY has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.14, HSY is doing worse than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 4.2 |
ROIC/WACC2.22
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.59 indicates that HSY should not have too much problems paying its short term obligations.
HSY's Current ratio of 1.59 is fine compared to the rest of the industry. HSY outperforms 67.24% of its industry peers.
A Quick Ratio of 1.11 indicates that HSY should not have too much problems paying its short term obligations.
HSY has a better Quick ratio (1.11) than 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for HSY have decreased strongly by -13.51% in the last year.
HSY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.11% yearly.
The Revenue has decreased by -5.91% in the past year.
The Revenue has been growing slightly by 7.00% on average over the past years.
EPS 1Y (TTM)-13.51%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-31.92%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%-13.75%
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 1.15% on average per year.
Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-33.9%
EPS Next 2Y-15.24%
EPS Next 3Y-6.31%
EPS Next 5Y1.15%
Revenue Next Year2.39%
Revenue Next 2Y2.72%
Revenue Next 3Y2.6%
Revenue Next 5Y2.96%
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
A Price/Earnings ratio of 19.67 indicates a rather expensive valuation of HSY.
HSY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, HSY is valued a bit cheaper.
HSY is valuated rather expensively with a Price/Forward Earnings ratio of 24.53.
Based on the Price/Forward Earnings ratio, HSY is valued a bit more expensive than 70.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. HSY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 24.53 |
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 70.69% 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 | 18.37 | ||
| EV/EBITDA | 13.53 |
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 -6.31% in the coming years.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y-15.24%
EPS Next 3Y-6.31%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 3.22%.
Compared to an average industry Dividend Yield of 3.56, HSY pays a bit more dividend than its industry peers.
HSY's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
65.72% of the earnings are spent on dividend by HSY. This is not a sustainable payout ratio.
The dividend of HSY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.72%
EPS Next 2Y-15.24%
EPS Next 3Y-6.31%
FRA:HSY (4/30/2025, 7:00:00 PM)
146.74
+3.06 (+2.13%)
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 Cap29.72B
Revenue(TTM)10.75B
Net Income(TTM)1.65B
Analysts56.36
Price Target146.85 (0.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend4.74
Dividend Growth(5Y)12.83%
DP65.72%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.23%
Min EPS beat(2)6.26%
Max EPS beat(2)12.21%
EPS beat(4)2
Avg EPS beat(4)-0.81%
Min EPS beat(4)-12.15%
Max EPS beat(4)12.21%
EPS beat(8)6
Avg EPS beat(8)2.32%
EPS beat(12)10
Avg EPS beat(12)4.1%
EPS beat(16)14
Avg EPS beat(16)4.85%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)0.65%
Revenue beat(4)1
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-10.97%
Max Revenue beat(4)0.65%
Revenue beat(8)3
Avg Revenue beat(8)-1.73%
Revenue beat(12)7
Avg Revenue beat(12)-0.12%
Revenue beat(16)11
Avg Revenue beat(16)1.36%
PT rev (1m)-4.03%
PT rev (3m)-12.61%
EPS NQ rev (1m)-20.97%
EPS NQ rev (3m)-17.02%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-18.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)7.79%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 24.53 | ||
| P/S | 3.11 | ||
| P/FCF | 18.37 | ||
| P/OCF | 14.18 | ||
| P/B | 7.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)7.46
EY5.08%
EPS(NY)5.98
Fwd EY4.08%
FCF(TTM)7.99
FCFY5.44%
OCF(TTM)10.35
OCFY7.05%
SpS47.19
BVpS20.55
TBVpS-1.04
PEG (NY)N/A
PEG (5Y)1.95
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.8% | ||
| ROE | 35.18% | ||
| ROCE | 21.18% | ||
| ROIC | 18.35% | ||
| ROICexc | 21.25% | ||
| ROICexgc | 43.69% | ||
| OM | 21.57% | ||
| PM (TTM) | 15.32% | ||
| GM | 42.57% | ||
| FCFM | 16.93% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 115.23% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 12.59 | ||
| Cash Conversion | 84.65% | ||
| Profit Quality | 110.5% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.2 |
F-Score4
WACC8.26%
ROIC/WACC2.22
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)-13.51%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-31.92%
EPS Next Y-33.9%
EPS Next 2Y-15.24%
EPS Next 3Y-6.31%
EPS Next 5Y1.15%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%-13.75%
Revenue Next Year2.39%
Revenue Next 2Y2.72%
Revenue Next 3Y2.6%
Revenue Next 5Y2.96%
EBIT growth 1Y-18.22%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-10.82%
EBIT Next 3Y1.75%
EBIT Next 5Y4.55%
FCF growth 1Y-2.74%
FCF growth 3Y6.4%
FCF growth 5Y5.9%
OCF growth 1Y-2.79%
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 19.67 and the Price/Book (PB) ratio is 7.14.
What is the financial health of HERSHEY CO/THE (HSY.DE) stock?
The financial health rating of HERSHEY CO/THE (HSY.DE) is 7 / 10.