HERSHEY CO/THE (HSY)
US4278661081 - Common Stock
Taking everything into account, HSY scores 6 out of 10 in our fundamental rating. HSY was compared to 90 industry peers in the Food Products industry. While HSY has a great profitability rating, there are some minor concerns on its financial health. HSY is valued correctly, but it does not seem to be growing.
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.
HSY had positive earnings in each of the past 5 years.
In the past 5 years HSY always reported a positive cash flow from operatings.
1.2 Ratios
HSY's Return On Assets of 14.05% is amongst the best of the industry. HSY outperforms 92.22% of its industry peers.
The Return On Equity of HSY (42.18%) is better than 98.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.53%, HSY belongs to the top of the industry, outperforming 98.89% 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 9.01%.
The last Return On Invested Capital (22.53%) for HSY is above the 3 year average (21.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.05% | ||
| ROE | 42.18% | ||
| ROIC | 22.53% |
ROA(3y)14.95%
ROA(5y)14.6%
ROE(3y)49.62%
ROE(5y)54.44%
ROIC(3y)21.99%
ROIC(5y)22.23%
1.3 Margins
With an excellent Profit Margin value of 16.17%, HSY belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
In the last couple of years the Profit Margin of HSY has grown nicely.
With an excellent Operating Margin value of 23.04%, HSY belongs to the best of the industry, outperforming 98.89% of the companies in the same industry.
In the last couple of years the Operating Margin of HSY has remained more or less at the same level.
HSY's Gross Margin of 44.46% is amongst the best of the industry. HSY outperforms 96.67% of its industry peers.
HSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.04% | ||
| PM (TTM) | 16.17% | ||
| GM | 44.46% |
OM growth 3Y0.84%
OM growth 5Y0.6%
PM growth 3Y2.05%
PM growth 5Y1.99%
GM growth 3Y-0.5%
GM growth 5Y-0.56%
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.
The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that HSY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.61, HSY belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
HSY has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as HSY would need 3.20 years to pay back of all of its debts.
HSY has a better Debt to FCF ratio (3.20) than 68.89% of its industry peers.
HSY has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
HSY's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. HSY is outperformed by 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.61 |
ROIC/WACC2.71
WACC8.3%
2.3 Liquidity
A Current Ratio of 0.85 indicates that HSY may have some problems paying its short term obligations.
The Current ratio of HSY (0.85) is worse than 77.78% of its industry peers.
A Quick Ratio of 0.54 indicates that HSY may have some problems paying its short term obligations.
The Quick ratio of HSY (0.54) is worse than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for HSY have decreased by -9.28% in the last year.
The Earnings Per Share has been growing by 12.34% on average over the past years. This is quite good.
HSY shows a decrease in Revenue. In the last year, the revenue decreased by -1.69%.
The Revenue has been growing slightly by 7.46% on average over the past years.
EPS 1Y (TTM)-9.28%
EPS 3Y15.09%
EPS 5Y12.34%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y11.06%
Revenue growth 5Y7.46%
Sales Q2Q%-1.4%
3.2 Future
The Earnings Per Share is expected to grow by 2.48% on average over the next years.
Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-4.47%
EPS Next 2Y-7.17%
EPS Next 3Y-1.9%
EPS Next 5Y2.48%
Revenue Next Year-0.51%
Revenue Next 2Y0.95%
Revenue Next 3Y1.51%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 19.83, HSY is valued on the expensive side.
63.33% of the companies in the same industry are more expensive than HSY, based on the Price/Earnings ratio.
HSY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.77.
HSY is valuated rather expensively with a Price/Forward Earnings ratio of 20.87.
64.44% of the companies in the same industry are more expensive than HSY, based on the Price/Forward Earnings ratio.
HSY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA is on the same level as the industry average.
61.11% of the companies in the same industry are more expensive than HSY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.11 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The excellent profitability rating of HSY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-7.17%
EPS Next 3Y-1.9%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
HSY's Dividend Yield is a higher than the industry average which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.24, HSY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 10.18%!
HSY has been paying a dividend for at least 10 years, so it has a reliable track record.
HSY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.18%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
HSY pays out 59.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HSY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.32%
EPS Next 2Y-7.17%
EPS Next 3Y-1.9%
HERSHEY CO/THE
NYSE:HSY (12/18/2024, 3:00:20 PM)
172.515
-5.12 (-2.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.91B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 20.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.05% | ||
| ROE | 42.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.04% | ||
| PM (TTM) | 16.17% | ||
| GM | 44.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.28%
EPS 3Y15.09%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y11.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y