HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - FRA:HSY - US4278661081 - Common Stock
146.74 EUR
+3.06 (+2.13%)
We assign a fundamental rating of 6 out of 10 to HSY. HSY was compared to 59 industry peers in the Food Products industry. HSY gets an excellent profitability rating and is at the same time showing great financial health properties. HSY is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HSY had positive earnings in the past year.
HSY had a positive operating cash flow in the past year.
Each year in the past 5 years HSY has been profitable.
Each year in the past 5 years HSY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.80%, HSY belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.
HSY has a Return On Equity of 35.18%. This is amongst the best in the industry. HSY outperforms 94.83% of its industry peers.
The Return On Invested Capital of HSY (18.35%) is better 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 6.83%.
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
With an excellent Profit Margin value of 15.32%, HSY belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
HSY's Profit Margin has improved in the last couple of years.
HSY's Operating Margin of 21.57% is amongst the best of the industry. HSY outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of HSY has grown nicely.
HSY's Gross Margin of 42.57% is fine compared to the rest of the industry. HSY outperforms 63.79% 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 | 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.
HSY has less shares outstanding than it did 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 4.20 indicates that HSY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.20, HSY belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
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's Debt to FCF ratio of 3.25 is amongst the best of the industry. HSY outperforms 82.76% of its industry peers.
HSY has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
HSY's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. HSY is outperformed by 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
HSY has a Current Ratio of 1.59. This is a normal value and indicates that HSY is financially healthy and should not expect problems in meeting its short term obligations.
HSY has a Current ratio of 1.59. This is in the better half of the industry: HSY outperforms 67.24% of its industry peers.
A Quick Ratio of 1.11 indicates that HSY should not have too much problems paying 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
HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.51%.
The Earnings Per Share has been growing by 10.11% on average over the past years. This is quite good.
The Revenue has decreased by -5.91% in the past year.
HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.00% yearly.
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
Based on estimates for the next years, HSY will show a small growth in Earnings Per Share. The EPS will grow by 1.15% on average per year.
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.
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
A Price/Earnings ratio of 19.67 indicates a rather expensive valuation of HSY.
The rest of the industry has a similar Price/Earnings ratio as HSY.
The average S&P500 Price/Earnings ratio is at 27.42. HSY is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 24.53, HSY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HSY is valued a bit more expensive than 70.69% of the companies in the same industry.
HSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as HSY.
| 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 3.30, HSY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, HSY pays a bit more dividend than the S&P500 average.
| 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.
HSY's earnings are growing slower than its dividend. 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%