The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products and pantry items. More Details
Solid track record established dividend payer.
Share Price & News
How has Hershey's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HSY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: HSY's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: HSY exceeded the US Food industry which returned 10.5% over the past year.
Return vs Market: HSY underperformed the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Hershey's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StA Look At The Fair Value Of The Hershey Company (NYSE:HSY)
3 weeks ago | Simply Wall StIs The Hershey Company's (NYSE:HSY) 62% ROE Better Than Average?
1 month ago | Simply Wall StHow Many The Hershey Company (NYSE:HSY) Shares Do Institutions Own?
Is Hershey undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSY ($178.88) is trading below our estimate of fair value ($206.81)
Significantly Below Fair Value: HSY is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HSY is poor value based on its PE Ratio (25.9x) compared to the US Food industry average (21.3x).
PE vs Market: HSY is poor value based on its PE Ratio (25.9x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: HSY is poor value based on its PEG Ratio (10.5x)
Price to Book Ratio
PB vs Industry: HSY is overvalued based on its PB Ratio (16.3x) compared to the US Food industry average (2.2x).
How is Hershey forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSY's forecast earnings growth (2.5% per year) is above the savings rate (2%).
Earnings vs Market: HSY's earnings (2.5% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: HSY's earnings are forecast to grow, but not significantly.
Revenue vs Market: HSY's revenue (2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: HSY's revenue (2% 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 (51.8%).
How has Hershey performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSY has high quality earnings.
Growing Profit Margin: HSY's current net profit margins (16.5%) are higher than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: HSY's earnings have grown by 14.1% per year over the past 5 years.
Accelerating Growth: HSY's earnings growth over the past year (32.9%) exceeds its 5-year average (14.1% per year).
Earnings vs Industry: HSY earnings growth over the past year (32.9%) exceeded the Food industry 25.4%.
Return on Equity
High ROE: Whilst HSY's Return on Equity (63.18%) is outstanding, this metric is skewed due to their high level of debt.
How is Hershey's financial position?
Financial Position Analysis
Short Term Liabilities: HSY's short term assets ($2.2B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: HSY's short term assets ($2.2B) do not cover its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: HSY's debt to equity ratio (185.9%) is considered high.
Reducing Debt: HSY's debt to equity ratio has reduced from 394.7% to 185.9% over the past 5 years.
Debt Coverage: HSY's debt is well covered by operating cash flow (49.8%).
Interest Coverage: HSY's interest payments on its debt are well covered by EBIT (14.4x coverage).
What is Hershey current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HSY's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: HSY's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: HSY's dividends per share have been stable in the past 10 years.
Growing Dividend: HSY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.5%), HSY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSY's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Michele Buck (59 yo)
Ms. Michele Gross Buck has been the Chairman at The Hershey Company since October 11, 2019 and its Chief Executive Officer and President since March 1, 2017. Ms. Buck is responsible for all day-to-day glob...
CEO Compensation Analysis
Compensation vs Market: Michele's total compensation ($USD19.12M) is above average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Michele's compensation has been consistent with company performance over the past year.
Experienced Management: HSY's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: HSY's board of directors are considered experienced (3.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Hershey Company's company bio, employee growth, exchange listings and data sources
- Name: The Hershey Company
- Ticker: HSY
- Exchange: NYSE
- Founded: 1894
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$36.856b
- Shares outstanding: 206.04m
- Website: https://www.thehersheycompany.com
Number of Employees
- The Hershey Company
- 19 East Chocolate Avenue
- United States
The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products and pantry items. The company operates in two segments, North America; and International and Other. It off...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/31 05:28|
|End of Day Share Price||2021/07/30 00:00|
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.