HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HSY - US4278661081 - Common Stock
154.12 EUR
-2.4 (-1.53%)
Taking everything into account, HSY scores 6 out of 10 in our fundamental rating. HSY was compared to 59 industry peers in the Food Products industry. While HSY belongs to the best of the industry regarding profitability, 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
HSY had positive earnings in the past year.
In the past year HSY had a positive cash flow from operations.
In the past 5 years HSY has always been profitable.
In the past 5 years HSY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.
The Return On Equity of HSY (29.79%) is better than 89.83% of its industry peers.
With an excellent Return On Invested Capital value of 16.48%, HSY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HSY had an Average Return On Invested Capital over the past 3 years of 23.99%. This is significantly above the industry average of 6.47%.
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 Profit Margin of 11.84%. This is amongst the best in the industry. HSY outperforms 88.14% of its industry peers.
In the last couple of years the Profit Margin of HSY has grown nicely.
HSY has a Operating Margin of 17.27%. This is amongst the best in the industry. HSY outperforms 96.61% of its industry peers.
HSY's Operating Margin has improved in the last couple of years.
HSY has a Gross Margin (37.74%) which is in line with 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
HSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
HSY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.42 indicates that HSY is not in any danger for bankruptcy at the moment.
HSY has a Altman-Z score of 4.42. This is amongst the best in the industry. HSY outperforms 94.92% 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 has a better Debt to FCF ratio (3.05) than 88.14% 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's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. HSY is outperformed by 74.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.42 |
ROIC/WACC2.05
WACC8.04%
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.
With a Current ratio value of 1.36, HSY perfoms like the industry average, outperforming 59.32% 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.
The Quick ratio of HSY (0.83) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 10.11% on average over the past years. This is quite good.
Looking at the last year, HSY shows a small growth in Revenue. The Revenue has grown by 4.71% in the last year.
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)-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
HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.22% yearly.
HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y-35.49%
EPS Next 2Y-13.95%
EPS Next 3Y-4.84%
EPS Next 5Y1.22%
Revenue Next Year3.64%
Revenue Next 2Y3.63%
Revenue Next 3Y3.39%
Revenue Next 5Y3.25%
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
HSY is valuated rather expensively with a Price/Earnings ratio of 24.66.
Based on the Price/Earnings ratio, HSY is valued a bit more expensive than the industry average as 61.02% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of HSY to the average of the S&P500 Index (26.28), we can say HSY is valued inline with the index average.
The Price/Forward Earnings ratio is 25.89, which means the current valuation is very expensive for HSY.
Based on the Price/Forward Earnings ratio, HSY is valued a bit more expensive than the industry average as 71.19% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.52. HSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSY indicates a slightly more expensive valuation: HSY is more expensive than 72.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.61 | ||
| EV/EBITDA | 16.32 |
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 -4.84% in the coming years.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y-13.95%
EPS Next 3Y-4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, HSY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.35, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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
79.75% of the earnings are spent on dividend by HSY. 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-13.95%
EPS Next 3Y-4.84%
FRA:HSY (12/4/2025, 7:00:00 PM)
154.12
-2.4 (-1.53%)
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 Cap31.25B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts65.71
Price Target162.4 (5.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)10.59%
PT rev (3m)10.59%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)-2.4%
EPS NY rev (3m)-2.4%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 25.89 | ||
| P/S | 3.17 | ||
| P/FCF | 20.61 | ||
| P/OCF | 15.89 | ||
| P/B | 7.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.32 |
EPS(TTM)6.25
EY4.06%
EPS(NY)5.95
Fwd EY3.86%
FCF(TTM)7.48
FCFY4.85%
OCF(TTM)9.7
OCFY6.29%
SpS48.61
BVpS19.31
TBVpS-1.63
PEG (NY)N/A
PEG (5Y)2.44
Graham Number52.11
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 | 4.42 |
F-Score4
WACC8.04%
ROIC/WACC2.05
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-35.49%
EPS Next 2Y-13.95%
EPS Next 3Y-4.84%
EPS Next 5Y1.22%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
Revenue Next Year3.64%
Revenue Next 2Y3.63%
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 24.66 and the Price/Book (PB) ratio is 7.98.
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.