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 59 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 does not seem to be growing, but still is valued expensively.
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 (11.80%) is better 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.
HSY has a better Return On Invested Capital (18.35%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSY is significantly above the industry average of 6.91%.
The 3 year average ROIC (23.99%) for HSY is well above the current ROIC(18.35%). The reason for the recent decline needs to be investigated.
| 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
HSY's Profit Margin of 15.32% is amongst the best of the industry. HSY outperforms 96.55% of its industry peers.
In the last couple of years the Profit Margin of HSY has grown nicely.
With an excellent Operating Margin value of 21.57%, HSY belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
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.
HSY's Gross Margin has been stable in the last couple of years.
| 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
HSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HSY has less shares outstanding
The number of shares outstanding for HSY has been reduced compared to 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 4.20 indicates that HSY is not in any danger for bankruptcy at the moment.
HSY's Altman-Z score of 4.20 is amongst the best of the industry. HSY outperforms 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.
HSY has a Debt to FCF ratio of 3.25. This is amongst the best in the industry. HSY outperforms 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 Debt to Equity ratio of 1.14. This is in the lower half of the industry: HSY underperforms 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.
The Current ratio of HSY (1.59) is better than 67.24% of its industry peers.
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
The earnings per share for HSY have decreased strongly by -13.51% 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 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
The Earnings Per Share is expected to grow by 1.15% on average over the next years.
The Revenue is expected to grow by 2.96% on average over the next years.
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.
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 27.30, HSY is valued a bit cheaper.
The Price/Forward Earnings ratio is 24.53, which indicates a rather expensive current valuation of HSY.
HSY's Price/Forward Earnings 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/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSY is valued a bit more expensive than the industry average as 70.69% of the companies are valued more cheaply.
HSY's Price/Free Cash Flow ratio is in line with 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%. 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 2.37.
| 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%