US4278661081 - Common Stock

Taking everything into account, **HSY** scores **6** out of 10 in our fundamental rating. **HSY** was compared to 92 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 not valued too expensively and it also shows a decent growth rate.

In the past year **HSY** had a positive cash flow from operations.

In the past 5 years **HSY** has always been profitable.

The **Return On Assets** of **HSY** (**15.40%**) is better than **96.70%** of its industry peers.

The **Return On Invested Capital** of **HSY** (**21.67%**) is better than **96.70%** of its industry peers.

The **Average Return On Invested Capital** over the past 3 years for **HSY** is significantly above the industry average of **8.24%**.

The 3 year average ROIC (**21.10%**) for **HSY** is below the current ROIC(**21.67%**), indicating increased profibility in the last year.

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

ROA | 15.4% | ||

ROE | 46.31% | ||

ROIC | 21.67% |

ROA(3y)14.41%

ROA(5y)14.53%

ROE(3y)53.57%

ROE(5y)62.21%

ROIC(3y)21.1%

ROIC(5y)21.83%

Looking at the **Profit Margin**, with a value of **16.71%**, **HSY** belongs to the top of the industry, outperforming **91.21%** of the companies in the same industry.

Looking at the **Operating Margin**, with a value of **22.99%**, **HSY** belongs to the top of the industry, outperforming **97.80%** of the companies in the same industry.

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

OM | 22.99% | ||

PM (TTM) | 16.71% | ||

GM | 44.57% |

OM growth 3Y0.52%

OM growth 5Y0.59%

PM growth 3Y3.12%

PM growth 5Y8.67%

GM growth 3Y-1.62%

GM growth 5Y-1.28%

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

The number of shares outstanding for **HSY** has been reduced compared to 5 years ago.

Compared to 1 year ago, **HSY** has an improved debt to assets ratio.

The **Altman-Z score** of **HSY** (**5.06**) is better than **87.91%** of its industry peers.

The Debt to FCF ratio of **HSY** is **3.02**, which is a good value as it means it would take **HSY**, **3.02** years of fcf income to pay off all of its debts.

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

Debt/Equity | 1.24 | ||

Debt/FCF | 3.02 | ||

Altman-Z | 5.06 |

ROIC/WACC2.65

WACC8.17%

A Current Ratio of **1.09** indicates that **HSY** should not have too much problems paying its short term obligations.

A Quick Ratio of **0.63** indicates that **HSY** may have some problems paying its short term obligations.

The **Quick ratio** of **HSY** (**0.63**) is worse than **73.63%** of its industry peers.

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

Current Ratio | 1.09 | ||

Quick Ratio | 0.63 |

The **Earnings Per Share** has grown by an nice **17.09%** over the past year.

Looking at the last year, **HSY** shows a small growth in **Revenue**. The Revenue has grown by **7.20%** in the last year.

The **Revenue** has been growing slightly by **6.75%** on average over the past years.

EPS 1Y (TTM)17.09%

EPS 3Y13.74%

EPS 5Y12.35%

EPS growth Q2Q19.82%

Revenue 1Y (TTM)7.2%

Revenue growth 3Y9.27%

Revenue growth 5Y6.75%

Revenue growth Q2Q11.06%

Based on estimates for the next years, **HSY** will show a small growth in **Earnings Per Share**. The EPS will grow by **6.96%** on average per year.

Based on estimates for the next years, **HSY** will show a small growth in **Revenue**. The Revenue will grow by **4.88%** on average per year.

EPS Next Y12.94%

EPS Next 2Y10.34%

EPS Next 3Y9.29%

EPS Next 5Y6.96%

Revenue Next Year8.63%

Revenue Next 2Y6.38%

Revenue Next 3Y5.39%

Revenue Next 5Y4.88%

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

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.

The **Price/Earnings** ratio is **19.79**, which indicates a rather expensive current valuation of **HSY**.

Compared to the rest of the industry, the **Price/Earnings** ratio of **HSY** indicates a somewhat cheap valuation: **HSY** is cheaper than 68.13% of the companies listed in the same industry.

Compared to an average S&P500 **Price/Earnings** ratio of **24.81**, **HSY** is valued a bit cheaper.

With a **Price/Forward Earnings** ratio of **18.30**, **HSY** is valued on the expensive side.

The average S&P500 **Price/Forward Earnings** ratio is at **19.91**. **HSY** is around the same levels.

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

PE | 19.79 | ||

Fwd PE | 18.3 |

The rest of the industry has a similar **Enterprise Value to EBITDA** ratio as **HSY**.

Compared to the rest of the industry, the **Price/Free Cash Flow** ratio of **HSY** indicates a somewhat cheap valuation: **HSY** is cheaper than 65.93% of the companies listed in the same industry.

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

P/FCF | 23.89 | ||

EV/EBITDA | 14.35 |

The excellent profitability rating of **HSY** may justify a higher PE ratio.

PEG (NY)1.53

PEG (5Y)1.6

EPS Next 2Y10.34%

EPS Next 3Y9.29%

Compared to an average industry **Dividend Yield** of **3.57**, **HSY** pays a bit more dividend than its industry peers.

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

Dividend Yield | 2.54% |

The dividend of **HSY** is nicely growing with an annual growth rate of **8.67%**!

Dividend Growth(5Y)8.67%

Div Incr Years14

Div Non Decr Years18

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

DP46.71%

EPS Next 2Y10.34%

EPS Next 3Y9.29%

**HERSHEY CO/THE**

NYSE:HSY (12/6/2023, 11:42:19 AM)

**189.824**

**+1.89 (+1.01%) **

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 Cap38.82B

Analysts

Price Target

Dividend

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

Dividend Yield | 2.54% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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EPS beat(16)

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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 | 19.79 | ||

Fwd PE | 18.3 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

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FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)1.53

PEG (5Y)1.6

Profitability

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

ROA | 15.4% | ||

ROE | 46.31% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 22.99% | ||

PM (TTM) | 16.71% | ||

GM | 44.57% | ||

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 Turnover0.92

Health

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

Debt/Equity | 1.24 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.09 | ||

Quick Ratio | 0.63 | ||

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)

Growth

EPS 1Y (TTM)17.09%

EPS 3Y13.74%

EPS 5Y

EPS growth Q2Q

EPS Next Y12.94%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)7.2%

Revenue growth 3Y9.27%

Revenue growth 5Y

Revenue growth 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

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