HERSHEY CO/THE (HSY)
US4278661081 - Common Stock
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY against 91 industry peers in the Food Products industry. While HSY has a great profitability rating, there are some minor concerns on its financial health. HSY has a valuation in line with the averages, but it does not seem to be growing.
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.
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 has a Return On Assets of 14.05%. This is amongst the best in the industry. HSY outperforms 93.33% of its industry peers.
HSY has a Return On Equity of 42.18%. This is amongst the best in the industry. HSY outperforms 98.89% of its industry peers.
The Return On Invested Capital of HSY (22.53%) is better than 98.89% of its industry peers.
HSY had an Average Return On Invested Capital over the past 3 years of 21.99%. This is significantly above the industry average of 8.94%.
The 3 year average ROIC (21.99%) for HSY is below the current ROIC(22.53%), indicating increased profibility in the last year.
| 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
HSY has a Profit Margin of 16.17%. This is amongst the best in the industry. HSY outperforms 94.44% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
The Operating Margin of HSY (23.04%) is better than 98.89% of its industry peers.
HSY's Operating Margin has been stable in the last couple of years.
HSY has a Gross Margin of 44.46%. This is amongst the best in the industry. HSY outperforms 96.67% 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 | 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.
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.
HSY has a better debt/assets ratio than last year.
2.2 Solvency
HSY has an Altman-Z score of 4.62. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.62, HSY belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
The Debt to FCF ratio of HSY is 3.20, which is a good value as it means it would take HSY, 3.20 years of fcf income to pay off all of its debts.
HSY has a better Debt to FCF ratio (3.20) than 74.44% 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.
Looking at the Debt to Equity ratio, with a value of 1.04, HSY is doing worse than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.62 |
ROIC/WACC2.73
WACC8.24%
2.3 Liquidity
HSY has a Current Ratio of 0.85. This is a bad value and indicates that HSY is not financially healthy enough and could expect problems in meeting its short term obligations.
HSY has a Current ratio of 0.85. This is in the lower half of the industry: HSY underperforms 77.78% of its industry peers.
A Quick Ratio of 0.54 indicates that HSY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, HSY is doing worse than 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
HSY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.28%.
Measured over the past years, HSY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.34% on average per year.
HSY shows a decrease in Revenue. In the last year, the revenue decreased by -1.69%.
Measured over the past years, HSY shows a small growth in Revenue. The Revenue has been growing by 7.46% on average per year.
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
HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.22% yearly.
HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y-1.94%
EPS Next 2Y-3.72%
EPS Next 3Y0.42%
EPS Next 5Y4.22%
Revenue Next Year0.2%
Revenue Next 2Y1.41%
Revenue Next 3Y1.86%
Revenue Next 5Y3.45%
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
The Price/Earnings ratio is 20.86, which indicates a rather expensive current valuation of HSY.
Based on the Price/Earnings ratio, HSY is valued a bit cheaper than 63.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of HSY to the average of the S&P500 Index (29.12), we can say HSY is valued slightly cheaper.
A Price/Forward Earnings ratio of 20.42 indicates a rather expensive valuation of HSY.
HSY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSY is cheaper than 64.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, HSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 20.42 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA is on the same level as the industry average.
HSY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.21 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
The excellent profitability rating of HSY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y-3.72%
EPS Next 3Y0.42%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 3.07%.
HSY's Dividend Yield is a higher than the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.21, HSY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 10.18%!
HSY has paid a dividend for at least 10 years, which is a reliable track record.
HSY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.18%
Div Incr Years14
Div Non Decr Years33
5.3 Sustainability
59.32% of the earnings are spent on dividend by HSY. This is a bit on the high side, but may be sustainable.
HSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.32%
EPS Next 2Y-3.72%
EPS Next 3Y0.42%
HERSHEY CO/THE
NYSE:HSY (11/12/2024, 7:06:48 PM)
After market: 181.5 0 (0%)181.5
+2.99 (+1.67%)
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 Cap36.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 20.86 | ||
| Fwd PE | 20.42 | ||
| 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)1.69
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-1.94%
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