Market Cap
US$31.4b
Last Updated
2020/12/05 00:11 UTC
Data Sources
Company Financials +
Executive Summary
The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
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 +/- 3% a week.
Volatility Over Time: HSY's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
HSY
1.6%
US Food
1.5%
US Market
1 Year Return
1.1%
HSY
5.3%
US Food
22.3%
US Market
Return vs Industry: HSY underperformed the US Food industry which returned 4.6% over the past year.
Return vs Market: HSY underperformed the US Market which returned 22.1% over the past year.
Shareholder returns
| HSY | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.6% | 1.5% |
| 30 Day | 4.8% | 4.8% | 8.8% |
| 90 Day | 1.4% | 1.8% | 10.8% |
| 1 Year | 3.3%1.1% | 7.9%5.3% | 25.1%22.3% |
| 3 Year | 43.2%33.3% | 8.3%-0.6% | 49.5%39.6% |
| 5 Year | 94.4%72.6% | 25.5%8.4% | 105.8%83.3% |
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 St
Estimating The Intrinsic Value Of The Hershey Company (NYSE:HSY)2 weeks ago | Simply Wall St
Here's What We Like About Hershey's (NYSE:HSY) Upcoming Dividend3 weeks ago | Simply Wall St
Earnings Beat: The Hershey Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their ModelsValuation
Is Hershey undervalued compared to its fair value and its price relative to the market?
26.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HSY ($150.87) is trading above our estimate of fair value ($133.09)
Significantly Below Fair Value: HSY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HSY is poor value based on its PE Ratio (26.3x) compared to the US Food industry average (25.2x).
PE vs Market: HSY is poor value based on its PE Ratio (26.3x) compared to the US market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: HSY is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: HSY is overvalued based on its PB Ratio (15.2x) compared to the US Food industry average (2.1x).
Next Steps
Future Growth
How is Hershey forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
6.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSY's forecast earnings growth (6% per year) is above the savings rate (2.2%).
Earnings vs Market: HSY's earnings (6% per year) are forecast to grow slower than the US market (21.9% per year).
High Growth Earnings: HSY's earnings are forecast to grow, but not significantly.
Revenue vs Market: HSY's revenue (2.3% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: HSY's revenue (2.3% 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 (55%).
Next Steps
Past Performance
How has Hershey performed over the past 5 years?
17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSY has high quality earnings.
Growing Profit Margin: HSY's current net profit margins (14.9%) are lower than last year (16.2%).
Past Earnings Growth Analysis
Earnings Trend: HSY's earnings have grown by 17% per year over the past 5 years.
Accelerating Growth: HSY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HSY had negative earnings growth (-6.6%) over the past year, making it difficult to compare to the Food industry average (-6.3%).
Return on Equity
High ROE: Whilst HSY's Return on Equity (57.45%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Hershey's financial position?
Financial Position Analysis
Short Term Liabilities: HSY's short term assets ($3.2B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: HSY's short term assets ($3.2B) do not cover its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: HSY's debt to equity ratio (234.3%) is considered high.
Reducing Debt: HSY's debt to equity ratio has reduced from 288.4% to 234.3% over the past 5 years.
Debt Coverage: HSY's debt is well covered by operating cash flow (38.5%).
Interest Coverage: HSY's interest payments on its debt are well covered by EBIT (11.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Hershey current dividend yield, its reliability and sustainability?
2.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HSY's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.49%).
High Dividend: HSY's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (4.1%).
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 reasonable payout ratio (54.5%), HSY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSY's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Michele Buck (58 yo)
3.75yrs
Tenure
US$16,787,188
Compensation
Ms. Michele Gross Buck has been the Chairman at The Hershey Company since October 11, 2019 and its Chief Executive Officer and President since March 1, 2017. Ms. Buck is responsible for all day-to-day glob...
CEO Compensation Analysis
Compensation vs Market: Michele's total compensation ($USD16.79M) is above average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Michele's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.75yrs | US$16.79m | 0.077% $ 24.2m | |
| Senior VP | 1.58yrs | US$4.02m | 0.0078% $ 2.4m | |
| Senior VP | 2.33yrs | US$2.58m | 0.0030% $ 954.6k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Global Chief Sales Officer | 4.92yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 0.92yr | no data | 0.0036% $ 1.1m | |
| President of International | 3.75yrs | no data | no data | |
| Chief Digital Commerce Officer | no data | no data | no data | |
| Senior VP & Chief Supply Chain Officer | 1.5yrs | no data | 0.0043% $ 1.3m | |
| President of U.S. | 0.92yr | no data | 0.0038% $ 1.2m | |
| President-International | no data | no data | no data | |
| Senior VP & Chief Growth Officer | 0.92yr | no data | 0.0025% $ 775.6k |
1.6yrs
Average Tenure
49yo
Average Age
Experienced Management: HSY's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.75yrs | US$16.79m | 0.077% $ 24.2m | |
| Independent Director | 3.58yrs | US$260.00k | no data | |
| Independent Director | 12.33yrs | US$275.00k | 0.0076% $ 2.4m | |
| Lead Independent Director | 1.17yrs | US$383.51k | 0.012% $ 3.8m | |
| Independent Director | 9yrs | US$275.00k | 0.0063% $ 2.0m | |
| Independent Director | 7.33yrs | US$275.00k | no data | |
| Independent Director | 9.67yrs | US$271.50k | 0.0062% $ 2.0m | |
| Independent Director | 3yrs | US$260.00k | no data | |
| Independent Director | 10.58yrs | US$260.00k | 0.0077% $ 2.4m | |
| Independent Director | 3.58yrs | US$260.00k | 0.00029% $ 91.1k | |
| Independent Director | 1.58yrs | US$156.22k | 0.000070% $ 22.0k | |
| Independent Director | 2.58yrs | US$260.00k | no data |
3.6yrs
Average Tenure
65yo
Average Age
Experienced Board: HSY's board of directors are considered experienced (3.6 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Hershey Company
- Ticker: HSY
- Exchange: NYSE
- Founded: 1894
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$31.403b
- Shares outstanding: 208.14m
- Website: https://www.thehersheycompany.com
Number of Employees
Location
- The Hershey Company
- 19 East Chocolate Avenue
- Hershey
- Pennsylvania
- 17033
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HSY | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| HSY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0J4X | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| HSY * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| HSY | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 3 REPR 1 ORD(USD) | AR | ARS | Nov 2002 | |
| HSHY34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR REPR 1/5 COM USD1.00 | BR | BRL | Jul 2015 |
Biography
The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products. The company operates through two segments, North America; and International and Other. It offers chocolat...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/05 00:11 |
| End of Day Share Price | 2020/12/04 00:00 |
| Earnings | 2020/09/27 |
| Annual Earnings | 2019/12/31 |
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.