HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - FRA:HSY - US4278661081 - Common Stock
146.74 EUR
+3.06 (+2.13%)
We assign a fundamental rating of 6 out of 10 to HSY. HSY was compared to 58 industry peers in the Food Products industry. HSY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HSY has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years HSY has always been profitable.
HSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HSY has a Return On Assets of 11.80%. This is amongst the best in the industry. HSY outperforms 94.83% of its industry peers.
The Return On Equity of HSY (35.18%) is better than 94.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.35%, HSY belongs to the top 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 7.05%.
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
Looking at the Profit Margin, with a value of 15.32%, HSY belongs to the top 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.
HSY has a Operating Margin of 21.57%. This is amongst the best in the industry. HSY outperforms 96.55% of its industry peers.
HSY's Operating Margin has improved in the last couple of years.
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.
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.
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.
With an excellent Altman-Z score value of 4.20, HSY belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
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.
The Debt to FCF ratio of HSY (3.25) is better than 82.76% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that HSY has dependencies on debt financing.
HSY has a worse Debt to Equity ratio (1.14) than 79.31% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 1.59, HSY is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
HSY has a Quick Ratio of 1.11. 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 Quick ratio of 1.11 is fine compared to the rest of the industry. HSY outperforms 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.51%.
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 decrease in Revenue. In the last year, the revenue decreased by -5.91%.
Measured over the past years, HSY shows a small growth in Revenue. The Revenue has been growing by 7.00% on average per year.
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
HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.15% yearly.
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
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
With a Price/Earnings ratio of 19.67, HSY is valued on the expensive side.
HSY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, HSY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 24.53, the valuation of HSY can be described as rather expensive.
70.69% of the companies in the same industry are cheaper than HSY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, HSY is valued at the same level.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as HSY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.37 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The excellent profitability rating of HSY may justify a higher PE ratio.
HSY's earnings are expected to decrease with -6.31% in the coming years. This may justify a cheaper valuation.
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.27, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 12.83%!
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
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
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%
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-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%