The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally.
The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars.
Hershey Fundamentals Summary
How do Hershey's earnings and revenue compare to its market cap?
Is HSY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6
Valuation Score 1/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HSY?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for HSY. This is calculated by dividing HSY's market cap by their current
preferred multiple.
What is HSY's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$46.16b
HSY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: HSY is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the US Food industry average (17.5x)
Price to Earnings Ratio vs Fair Ratio
What is HSY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
HSY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
28.3x
Fair PE Ratio
24.6x
Price-To-Earnings vs Fair Ratio: HSY is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.6x).
Share Price vs Fair Value
What is the Fair Price of HSY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HSY ($225.18) is trading below our estimate of fair value ($250.45)
Significantly Below Fair Value: HSY is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Hershey forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score
2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
4.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSY's forecast earnings growth (4.2% per year) is above the savings rate (1.9%).
Earnings vs Market: HSY's earnings (4.2% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: HSY's earnings are forecast to grow, but not significantly.
Revenue vs Market: HSY's revenue (3.4% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: HSY's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HSY's Return on Equity is forecast to be very high in 3 years time (49.2%).
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Past Performance
How has Hershey performed over the past 5 years?
Past Performance Score
5/6
Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSY has high quality earnings.
Growing Profit Margin: HSY's current net profit margins (16.8%) are higher than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: HSY's earnings have grown by 13.4% per year over the past 5 years.
Accelerating Growth: HSY's earnings growth over the past year (13.5%) exceeds its 5-year average (13.4% per year).
Earnings vs Industry: HSY earnings growth over the past year (13.5%) exceeded the Food industry 5.4%.
Return on Equity
High ROE: Whilst HSY's Return on Equity (56.5%) is outstanding, this metric is skewed due to their high level of debt.
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Financial Health
How is Hershey's financial position?
Financial Health Score
3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: HSY's short term assets ($2.4B) do not cover its short term liabilities ($3.3B).
Long Term Liabilities: HSY's short term assets ($2.4B) do not cover its long term liabilities ($4.4B).
Debt to Equity History and Analysis
Debt Level: HSY's net debt to equity ratio (159%) is considered high.
Reducing Debt: HSY's debt to equity ratio has reduced from 342.4% to 170.7% over the past 5 years.
Debt Coverage: HSY's debt is well covered by operating cash flow (44.1%).
Interest Coverage: HSY's interest payments on its debt are well covered by EBIT (17.5x coverage).
Balance Sheet
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Dividend
What is Hershey current dividend yield, its reliability and sustainability?
Dividend Score
5/6
Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.84%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HSY's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: HSY's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: HSY's dividends per share have been stable in the past 10 years.
Growing Dividend: HSY's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (45.6%), HSY's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (50.9%), HSY's dividend payments are covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Michele Buck (60 yo)
5.42yrs
Tenure
US$16,144,570
Compensation
Ms. Michele Gross Buck has been the Chairman at The Hershey Company since October 11, 2019 and has been its Chief Executive Officer and President since March 1, 2017. Ms. Buck is responsible for all day-to...
CEO Compensation Analysis
Compensation vs Market: Michele's total compensation ($USD16.14M) is about average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Michele's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HSY's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: HSY's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Hershey Company's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/11 00:00
End of Day Share Price
2022/08/11 00:00
Earnings
2022/07/03
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.