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HSY

Hershey NYSE:HSY Stock Report

Last Price

US$230.72

Market Cap

US$47.3b

7D

1.1%

1Y

26.7%

Updated

16 Aug, 2022

Data

Company Financials +
HSY fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends5/6

HSY Stock Overview

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.

Hershey Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hershey
Historical stock prices
Current Share PriceUS$230.72
52 Week HighUS$231.96
52 Week LowUS$167.80
Beta0.34
1 Month Change6.42%
3 Month Change11.09%
1 Year Change26.68%
3 Year Change47.44%
5 Year Change114.10%
Change since IPO2,445.88%

Recent News & Updates

Aug 08
A Look At The Fair Value Of The Hershey Company (NYSE:HSY)

A Look At The Fair Value Of The Hershey Company (NYSE:HSY)

Today we will run through one way of estimating the intrinsic value of The Hershey Company ( NYSE:HSY ) by taking the...

Jul 27

Hershey Q2 2022 Earnings Preview

Hershey (NYSE:HSY) is scheduled to announce Q2 earnings results on Thursday, July 28th, before market open. EPS Estimate is $1.68 (+14.3% Y/Y) and the consensus Revenue Estimate is $2.24B (+12.6% Y/Y). has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time. upward revisions and 10 downward. Revenue estimates have seen 11 upward revisions and 1 downward.

Shareholder Returns

HSYUS FoodUS Market
7D1.1%2.2%3.6%
1Y26.7%5.5%-9.6%

Return vs Industry: HSY exceeded the US Food industry which returned 5.5% over the past year.

Return vs Market: HSY exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is HSY's price volatile compared to industry and market?
HSY volatility
HSY Average Weekly Movement3.5%
Food Industry Average Movement6.5%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: HSY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HSY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189417,805Michele Buckhttps://www.thehersheycompany.com

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?
HSY fundamental statistics
Market CapUS$47.29b
Earnings (TTM)US$1.63b
Revenue (TTM)US$9.72b

29.0x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSY income statement (TTM)
RevenueUS$9.72b
Cost of RevenueUS$5.40b
Gross ProfitUS$4.32b
Other ExpensesUS$2.69b
EarningsUS$1.63b

Last Reported Earnings

Jul 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.95
Gross Margin44.42%
Net Profit Margin16.76%
Debt/Equity Ratio170.7%

How did HSY perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

46%

Payout Ratio

Does HSY pay a reliable dividends?

See HSY dividend history and benchmarks
When do you need to buy HSY by to receive an upcoming dividend?
Hershey dividend dates
Ex Dividend DateAug 18 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend1 day
Days until Dividend pay date29 days

Does HSY pay a reliable dividends?

See HSY dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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.

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.
Key Statistics
Enterprise Value/Revenue5.4x
Enterprise Value/EBITDA20.4x
PEG Ratio6.9x

Price to Earnings Ratio vs Peers

How does HSY's PE Ratio compare to its peers?

HSY PE Ratio vs Peers
The above table shows the PE ratio for HSY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
GIS General Mills
17x3.5%US$45.7b
KHC Kraft Heinz
31.4x10.7%US$47.6b
TSN Tyson Foods
7.3x-3.4%US$29.5b
HRL Hormel Foods
28.8x8.2%US$27.7b
HSY Hershey
29x4.2%US$47.3b

Price-To-Earnings vs Peers: HSY is expensive based on its Price-To-Earnings Ratio (29x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does HSY's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: HSY is expensive based on its Price-To-Earnings Ratio (29x) compared to the US Food industry average (18.9x)


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 Ratio29x
Fair PE Ratio24.6x

Price-To-Earnings vs Fair Ratio: HSY is expensive based on its Price-To-Earnings Ratio (29x) 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 ($230.72) 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 (7.9% 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.


Discover strong past performing companies

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


1.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HSY's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: HSY's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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.


Discover strong dividend paying companies

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 ($USD16.14M) is about average for companies of similar size in the US market ($USD12.87M).

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


Key Information

  • Name: The Hershey Company
  • Ticker: HSY
  • Exchange: NYSE
  • Founded: 1894
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$47.294b
  • Shares outstanding: 204.98m
  • Website: https://www.thehersheycompany.com

Number of Employees


Location

  • The Hershey Company
  • 19 East Chocolate Avenue
  • Hershey
  • Pennsylvania
  • 17033
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/07/03
Annual Earnings2021/12/31


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.