HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
184.8 USD
+2.18 (+1.19%)
184.8 USD
0 (0%)
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY against 87 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 expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HSY was profitable.
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
Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
The Return On Equity of HSY (29.79%) is better than 97.70% of its industry peers.
HSY has a better Return On Invested Capital (16.48%) than 95.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSY is below the industry average of 28.50%.
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 93.10% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
HSY has a better Operating Margin (17.27%) than 96.55% of its industry peers.
HSY's Operating Margin has improved in the last couple of years.
The Gross Margin of HSY (37.74%) is better than 83.91% of 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HSY is creating value.
Compared to 1 year ago, HSY has less shares outstanding
Compared to 5 years ago, HSY has less shares outstanding
HSY has a better debt/assets ratio than last year.
2.2 Solvency
HSY has an Altman-Z score of 4.49. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HSY (4.49) is better than 86.21% of its industry peers.
HSY has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as HSY would need 3.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.05, HSY belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that HSY has dependencies on debt 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 74.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.49 |
ROIC/WACC2.02
WACC8.14%
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.
HSY's Current ratio of 1.36 is on the low side compared to the rest of the industry. HSY is outperformed by 62.07% of its industry peers.
A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, HSY perfoms like the industry average, outperforming 44.83% of the companies in the same 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.
HSY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.71%.
HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.00% yearly.
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.
Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
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
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.
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
The Price/Earnings ratio is 25.35, which means the current valuation is very expensive for HSY.
Compared to the rest of the industry, the Price/Earnings ratio of HSY is on the same level as its industry peers.
HSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
HSY is valuated quite expensively with a Price/Forward Earnings ratio of 26.64.
The rest of the industry has a similar Price/Forward Earnings ratio as HSY.
HSY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSY is on the same level as its industry peers.
65.52% 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 | 21.2 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
HSY has an outstanding profitability rating, which may justify a higher PE ratio.
HSY's earnings are expected to decrease with -4.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.51
EPS Next 2Y-13.95%
EPS Next 3Y-4.84%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, HSY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, HSY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 12.83%!
HSY has paid a dividend for at least 10 years, which is 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)12.83%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
79.75% 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.
DP79.75%
EPS Next 2Y-13.95%
EPS Next 3Y-4.84%
184.8
+2.18 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.95%
Inst Owner Change-0.25%
Ins Owners0.19%
Ins Owner Change1.17%
Market Cap37.48B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts65.71
Price TargetN/A
Short Float %5.9%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend5.33
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr Years15
Div Non Decr Years34
Ex-Date
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)-1.34%
PT rev (3m)2.36%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-11.28%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 26.64 | ||
| P/S | 3.26 | ||
| P/FCF | 21.2 | ||
| P/OCF | 16.35 | ||
| P/B | 8.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.74 |
EPS(TTM)7.29
EY3.94%
EPS(NY)6.94
Fwd EY3.75%
FCF(TTM)8.72
FCFY4.72%
OCF(TTM)11.3
OCFY6.12%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.51
Graham Number60.76
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 | 4.49 |
F-Score4
WACC8.14%
ROIC/WACC2.02
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 FAQ
What is the fundamental rating for HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSY.
What is the valuation status of HERSHEY CO/THE (HSY) stock?
ChartMill assigns a valuation rating of 3 / 10 to HERSHEY CO/THE (HSY). This can be considered as Overvalued.
What is the profitability of HSY stock?
HERSHEY CO/THE (HSY) 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) is 25.35 and the Price/Book (PB) ratio is 8.21.
What is the financial health of HERSHEY CO/THE (HSY) stock?
The financial health rating of HERSHEY CO/THE (HSY) is 6 / 10.