US4278661081 - Common Stock

We assign a fundamental rating of **6** out of 10 to **HSY**. **HSY** was compared to 92 industry peers in the **Food Products** industry. **HSY** scores excellent on profitability, but there are some minor concerns on its financial health. **HSY** is valued correctly, but it does not seem to be growing.

Each year in the past 5 years **HSY** had a positive operating cash flow.

Looking at the **Return On Assets**, with a value of **14.87%**, **HSY** belongs to the top of the industry, outperforming **94.51%** of the companies in the same industry.

The **Return On Equity** of **HSY** (**46.04%**) is better than **98.90%** of its industry peers.

Looking at the **Return On Invested Capital**, with a value of **22.65%**, **HSY** belongs to the top of the industry, outperforming **98.90%** 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 **8.90%**.

The 3 year average ROIC (**21.99%**) for **HSY** is below the current ROIC(**22.65%**), indicating increased profibility in the last year.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 14.87% | ||

ROE | 46.04% | ||

ROIC | 22.65% |

ROA(3y)14.95%

ROA(5y)14.6%

ROE(3y)49.62%

ROE(5y)54.44%

ROIC(3y)21.99%

ROIC(5y)22.23%

Looking at the **Profit Margin**, with a value of **16.76%**, **HSY** belongs to the top of the industry, outperforming **95.60%** of the companies in the same industry.

The **Operating Margin** of **HSY** (**23.62%**) is better than **98.90%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 23.62% | ||

PM (TTM) | 16.76% | ||

GM | 45.43% |

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%

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so **HSY** is creating value.

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.

The Debt to FCF ratio of **HSY** is **3.91**, which is a good value as it means it would take **HSY**, **3.91** years of fcf income to pay off all of its debts.

With a **Debt to Equity ratio** value of **1.20**, **HSY** is not doing good in the industry: **76.92%** of the companies in the same industry are doing better.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.2 | ||

Debt/FCF | 3.91 | ||

Altman-Z | 4.69 |

ROIC/WACC2.75

WACC8.24%

A Current Ratio of **0.86** indicates that **HSY** may have some problems paying its short term obligations.

A Quick Ratio of **0.48** indicates that **HSY** may have some problems paying its short term obligations.

The **Quick ratio** of **HSY** (**0.48**) is worse than **79.12%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.86 | ||

Quick Ratio | 0.48 |

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.

The **Revenue** has been growing slightly by **1.44%** in the past year.

The **Revenue** has been growing slightly by **7.46%** on average over the past years.

EPS 1Y (TTM)-2.18%

EPS 3Y15.09%

EPS 5Y12.34%

EPS Q2Q%-36.82%

Revenue 1Y (TTM)1.44%

Revenue growth 3Y11.06%

Revenue growth 5Y7.46%

Sales Q2Q%-16.7%

Based on estimates for the next years, **HSY** will show a small growth in **Earnings Per Share**. The EPS will grow by **4.22%** on average per year.

Based on estimates for the next years, **HSY** will show a small growth in **Revenue**. The Revenue will grow by **3.45%** on average per year.

EPS Next Y-0.91%

EPS Next 2Y-2.33%

EPS Next 3Y1.08%

EPS Next 5Y4.22%

Revenue Next Year0.68%

Revenue Next 2Y1.79%

Revenue Next 3Y2.08%

Revenue Next 5Y3.45%

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.

The **Price/Earnings** ratio is **19.77**, which indicates a rather expensive current valuation of **HSY**.

63.74% of the companies in the same industry are more expensive than **HSY**, based on the **Price/Earnings** ratio.

With a **Price/Forward Earnings** ratio of **19.37**, **HSY** is valued on the expensive side.

The average S&P500 **Price/Forward Earnings** ratio is at **23.57**. **HSY** is around the same levels.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 19.77 | ||

Fwd PE | 19.37 |

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 25.9 | ||

EV/EBITDA | 13.18 |

PEG (NY)N/A

PEG (5Y)1.6

EPS Next 2Y-2.33%

EPS Next 3Y1.08%

With a **Yearly Dividend Yield** of **3.09%**, **HSY** has a reasonable but not impressive dividend return.

Compared to an average industry **Dividend Yield** of **3.72**, **HSY** pays a bit more dividend than its industry peers.

Compared to an average S&P500 **Dividend Yield** of **2.26**, **HSY** pays a bit more dividend than the S&P500 average.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.09% |

On average, the dividend of **HSY** grows each year by **10.18%**, which is quite nice.

Dividend Growth(5Y)10.18%

Div Incr Years14

Div Non Decr Years33

The dividend of **HSY** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP55.23%

EPS Next 2Y-2.33%

EPS Next 3Y1.08%

**HERSHEY CO/THE**

NYSE:HSY (11/6/2024, 3:56:02 PM)

**177.175**

**-2.94 (-1.63%) **

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 Cap35.84B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.09% |

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 | 19.77 | ||

Fwd PE | 19.37 | ||

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)1.6

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 14.87% | ||

ROE | 46.04% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 23.62% | ||

PM (TTM) | 16.76% | ||

GM | 45.43% | ||

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 Turnover0.89

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.2 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.86 | ||

Quick Ratio | 0.48 | ||

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)-2.18%

EPS 3Y15.09%

EPS 5Y

EPS Q2Q%

EPS Next Y-0.91%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)1.44%

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