HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
189.07 USD
+4.32 (+2.34%)
189.07 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HSY. HSY was compared to 87 industry peers in the Food Products industry. HSY scores excellent on profitability, but there are some minor concerns on its financial health. HSY has a expensive valuation and it also scores bad on growth.
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.
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
Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
HSY's Return On Equity of 29.79% is amongst the best of the industry. HSY outperforms 97.70% of its industry peers.
HSY has a better Return On Invested Capital (16.48%) than 94.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSY is below the industry average of 27.89%.
The 3 year average ROIC (23.99%) for HSY is well above the current ROIC(16.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROIC | 16.48% |
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
HSY's Profit Margin of 11.84% is amongst the best of the industry. HSY outperforms 93.10% of its industry peers.
HSY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.27%, HSY belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Operating Margin of HSY has grown nicely.
Looking at the Gross Margin, with a value of 37.74%, HSY belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
HSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% |
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.
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.
The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.55 indicates that HSY is not in any danger for bankruptcy at the moment.
HSY's Altman-Z score of 4.55 is amongst the best of the industry. HSY outperforms 85.06% of its industry peers.
The Debt to FCF ratio of HSY is 3.05, which is a good value as it means it would take HSY, 3.05 years of fcf income to pay off all of its debts.
HSY's Debt to FCF ratio of 3.05 is amongst the best of the industry. HSY outperforms 82.76% of its industry peers.
HSY has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
HSY's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. HSY is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.55 |
ROIC/WACC2.02
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HSY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, HSY perfoms like the industry average, outperforming 40.23% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
The Quick ratio of HSY (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.21%.
Measured over the past years, HSY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.11% on average per year.
HSY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.71%.
HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.00% yearly.
EPS 1Y (TTM)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
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 2.75% on average per year.
Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 3.41% on average per year.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 25.94 indicates a quite expensive valuation of HSY.
HSY's Price/Earnings is on the same level as the industry average.
HSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.79, HSY can be considered very expensive at the moment.
HSY's Price/Forward Earnings ratio is in line with the industry average.
HSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HSY is valued a bit cheaper than 63.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 17.09 |
4.3 Compensation for Growth
The excellent profitability rating of HSY may justify a higher PE ratio.
A cheap valuation may be justified as HSY's earnings are expected to decrease with -4.44% in the coming years.
PEG (NY)N/A
PEG (5Y)2.57
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 2.97%.
HSY's Dividend Yield is a higher than the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 1.92, HSY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 12.83%!
HSY has been paying a dividend for at least 10 years, so it has a reliable track record.
HSY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.83%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
HSY pays out 79.75% of its income as dividend. This is not a sustainable payout ratio.
HSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.75%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
189.07
+4.32 (+2.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change0.16%
Ins Owners0.19%
Ins Owner Change0.96%
Market Cap38.34B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target195 (3.14%)
Short Float %6.18%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend5.33
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.61%
Min EPS beat(2)20.39%
Max EPS beat(2)20.83%
EPS beat(4)4
Avg EPS beat(4)14.92%
Min EPS beat(4)6.26%
Max EPS beat(4)20.83%
EPS beat(8)6
Avg EPS beat(8)6.32%
EPS beat(12)10
Avg EPS beat(12)6.89%
EPS beat(16)14
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)1.19%
Max Revenue beat(2)2.62%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)2.62%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)7
Avg Revenue beat(12)-0.53%
Revenue beat(16)11
Avg Revenue beat(16)1.12%
PT rev (1m)1.43%
PT rev (3m)1.51%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-11.45%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 26.79 | ||
| P/S | 3.34 | ||
| P/FCF | 21.69 | ||
| P/OCF | 16.73 | ||
| P/B | 8.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.09 |
EPS(TTM)7.29
EY3.86%
EPS(NY)7.06
Fwd EY3.73%
FCF(TTM)8.72
FCFY4.61%
OCF(TTM)11.3
OCFY5.98%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.57
Graham Number60.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROCE | 19.16% | ||
| ROIC | 16.48% | ||
| ROICexc | 18.51% | ||
| ROICexgc | 39.09% | ||
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% | ||
| FCFM | 15.39% |
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%
ROICexgc growth 3Y3.23%
ROICexgc 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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 105.99% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 9.57 | ||
| Cash Conversion | 92.48% | ||
| Profit Quality | 130% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.55 |
F-Score4
WACC8.17%
ROIC/WACC2.02
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)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.41%
EBIT growth 1Y-21.53%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-6.42%
EBIT Next 3Y5.6%
EBIT Next 5Y6.23%
FCF growth 1Y8.78%
FCF growth 3Y6.4%
FCF growth 5Y5.9%
OCF growth 1Y-1.75%
OCF growth 3Y6.52%
OCF growth 5Y7.49%
HERSHEY CO/THE / HSY FAQ
What is the fundamental rating for HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSY.
Can you provide the valuation status for HERSHEY CO/THE?
ChartMill assigns a valuation rating of 3 / 10 to HERSHEY CO/THE (HSY). This can be considered as Overvalued.
What is the profitability of HSY stock?
HERSHEY CO/THE (HSY) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for HSY stock?
The Price/Earnings (PE) ratio for HERSHEY CO/THE (HSY) is 25.94 and the Price/Book (PB) ratio is 8.4.
Can you provide the expected EPS growth for HSY stock?
The Earnings per Share (EPS) of HERSHEY CO/THE (HSY) is expected to decline by -35.44% in the next year.