US4278661081 - Common Stock

**HSY** gets a fundamental rating of **6** out of 10. The analysis compared the fundamentals against 93 industry peers in the **Food Products** industry. While **HSY** belongs to the best of the industry regarding profitability, 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** was profitable.

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.

Measured over the past 3 years, the **Average Return On Invested Capital** for **HSY** is significantly above the industry average of **7.81%**.

The 3 year average ROIC (**21.99%**) for **HSY** is below the current ROIC(**23.88%**), indicating increased profibility in the last year.

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

ROA | 16.72% | ||

ROE | 50.44% | ||

ROIC | 23.88% |

ROA(3y)14.95%

ROA(5y)14.6%

ROE(3y)49.63%

ROE(5y)54.45%

ROIC(3y)21.99%

ROIC(5y)22.23%

With an excellent **Profit Margin** value of **18.13%**, **HSY** belongs to the best of the industry, outperforming **94.57%** of the companies in the same industry.

In the last couple of years the **Operating Margin** of **HSY** has remained more or less at the same level.

With an excellent **Gross Margin** value of **46.31%**, **HSY** belongs to the best of the industry, outperforming **96.74%** of the companies in the same industry.

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 | 24.82% | ||

PM (TTM) | 18.13% | ||

GM | 46.31% |

OM growth 3Y0.85%

OM growth 5Y0.61%

PM growth 3Y2.04%

PM growth 5Y1.98%

GM growth 3Y-0.5%

GM growth 5Y-0.56%

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 1 year ago.

The debt/assets ratio for **HSY** has been reduced compared to a year ago.

An Altman-Z score of **4.93** indicates that **HSY** is not in any danger for bankruptcy at the moment.

A Debt/Equity ratio of **1.24** is on the high side and indicates that **HSY** has dependencies on debt financing.

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

Debt/Equity | 1.24 | ||

Debt/FCF | 4.05 | ||

Altman-Z | 4.93 |

ROIC/WACC2.93

WACC8.15%

Looking at the **Quick ratio**, with a value of **0.64**, **HSY** is doing worse than **67.39%** of the companies in the same industry.

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

Current Ratio | 0.97 | ||

Quick Ratio | 0.64 |

The **Earnings Per Share** has been growing by **12.34%** on average over the past years. This is quite good.

EPS 1Y (TTM)8.38%

EPS 3Y15.09%

EPS 5Y12.34%

EPS Q2Q%3.72%

Revenue 1Y (TTM)6.42%

Revenue growth 3Y11.06%

Revenue growth 5Y7.46%

Sales Q2Q%8.87%

The **Earnings Per Share** is expected to grow by **4.18%** on average over the next years.

Based on estimates for the next years, **HSY** will show a small growth in **Revenue**. The Revenue will grow by **3.41%** on average per year.

EPS Next Y1.18%

EPS Next 2Y1.55%

EPS Next 3Y3.46%

EPS Next 5Y4.18%

Revenue Next Year2.05%

Revenue Next 2Y2.95%

Revenue Next 3Y3.29%

Revenue Next 5Y3.41%

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.

Based on the **Price/Earnings** ratio of **18.87**, the valuation of **HSY** can be described as rather expensive.

69.57% of the companies in the same industry are more expensive than **HSY**, based on the **Price/Earnings** ratio.

Compared to an average S&P500 **Price/Earnings** ratio of **28.66**, **HSY** is valued a bit cheaper.

The **Price/Forward Earnings** ratio is **18.51**, which indicates a rather expensive current valuation of **HSY**.

Based on the **Price/Forward Earnings** ratio, **HSY** is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.

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

PE | 18.87 | ||

Fwd PE | 18.51 |

61.96% of the companies in the same industry are more expensive than **HSY**, based on the **Enterprise Value to EBITDA** ratio.

The rest of the industry has a similar **Price/Free Cash Flow** ratio as **HSY**.

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

P/FCF | 27.86 | ||

EV/EBITDA | 12.43 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates **HSY** does not grow enough to justify the current Price/Earnings ratio.

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

PEG (NY)16.01

PEG (5Y)1.53

EPS Next 2Y1.55%

EPS Next 3Y3.46%

With a **Yearly Dividend Yield** of **2.95%**, **HSY** has a reasonable but not impressive dividend return.

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

Dividend Yield | 2.95% |

The dividend of **HSY** is nicely growing with an annual growth rate of **10.20%**!

Dividend Growth(5Y)10.2%

Div Incr Years14

Div Non Decr Years33

DP46.09%

EPS Next 2Y1.55%

EPS Next 3Y3.46%

**HERSHEY CO/THE**

NYSE:HSY (6/17/2024, 7:04:00 PM)

After market: 183.19 +0.14 (+0.08%)**183.05**

**-3.93 (-2.1%) **

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 Cap37.02B

Analysts

Price Target

Dividend

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

Dividend Yield | 2.95% |

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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Revenue beat(2)

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Max Revenue beat(2)

Revenue beat(4)

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Revenue beat(8)

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Revenue beat(16)

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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 | 18.87 | ||

Fwd PE | 18.51 | ||

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)16.01

PEG (5Y)1.53

Profitability

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

ROA | 16.72% | ||

ROE | 50.44% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 24.82% | ||

PM (TTM) | 18.13% | ||

GM | 46.31% | ||

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 | 0.97 | ||

Quick Ratio | 0.64 | ||

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)8.38%

EPS 3Y15.09%

EPS 5Y

EPS Q2Q%

EPS Next Y1.18%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)6.42%

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