Hershey Co

  • Earnings Score
  • Moat Score
  • Safety Score
  • Final Score
  • Market Cap $35.71B
  • PE 20
  • Debt $5.29B
  • Cash $614.95M
  • EV $40.38B
  • FCF $1.65B

Earnings

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Sales & Net Margins

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Earnings$1.77B
EBIT$2.42B
ROE42%
ROA19%
FCF$1.65B
Equity$4.20B
Growth Stability100%
PE20.13
PEG1.52
PB8.49
P/FCF21.59
P/S3.25
Price/Cash0.02
Debt/Equity1.26
Debt/FCF3.2
Net Margins17%
Gross Margins44%
Op. Margins22%
Earnings CAGR15%
Sales Growth YoY-1%
Sales Growth QoQ44%
Sales CAGR6%
FCF CAGR10%
Equity CAGR19%
Earnings Stability0.9
Earnings Growth YoY-14%
Earnings Growth QoQ147%
Earnings CAGR 5Y13%
Sales CAGR 5Y9%
FCF CAGR 5Y3%
Equity CAGR 5Y23%
Earnings CAGR 3Y8%
Sales CAGR 3Y8%
FCF CAGR 3Y-5%
Equity CAGR 3Y18%
Market Cap$35.71B
Revenue$10.97B
Dividend Yield3%
Payout Ratio59%
Assets$12.62B
Total Debt$5.29B
Cash$614.95M
EV40.38B
Earnings Score94%
Moat Score96%
Safety Score88%
Final Score93%
Working Capital-643.21M
Current Ratio0.85
Gross Profit$4.87B
Equity Growth QoQ5%
Equity Growth YoY6%

Assets & ROA

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Stockholders Equity & ROE

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Hershey is a leading confectionery manufacturer in the U.S. (around a $25 billion market), controlling around 46% of the domestic chocolate space (per IRI). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the U.S., including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix and Pirate Brands (including the Pirate's Booty, Smart Puffs, and Original Tings brands) over the past few years.

SEC Filings

Direct access to Hershey Co (HSY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2024
    • 10-Q Sep 29
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2023
    • 10-K Dec 31
    • 10-Q Oct 01
    • 10-Q Jul 02
    • 10-Q Apr 02
  • 2022
    • 10-K Dec 31
    • 10-Q Oct 02
    • 10-Q Jul 03
    • 10-Q Apr 03

Sector Comparison

How does Hershey Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Hershey Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%
Stability 90%
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Hershey Co Discounted Cash Flow

Fully customizable DCF calculator online for Hershey Co.

= $33B
012345678910TV
fcf$1.7B$1.8B$2B$2.2B$2.4B$2.7B$2.9B$3.2B$3.5B$3.9B$4.3B$43B
DCF$1.7B$1.7B$1.6B$1.6B$1.6B$1.6B$1.6B$1.6B$1.6B$1.6B$16B
Value$33B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023TTM
Net Margins11%7%10%10%15%14%16%16%16%17%17%
ROA-19%22%23%21%20%20%20%21%22%19%
ROE-49%87%81%83%66%57%54%50%45%42%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023TTM
Debt over FCF-2.894.172.943.513.423.953.172.683.13.2
Debt over Equity1.442.443.63.143.172.832.221.821.471.171.26
Growth Stability---100%100%100%100%100%100%100%100%

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023CAGR 5Y
Revenue YoY growth--0%1%1%4%3%2%10%16%7%9%
Earnings YoY growth--39%40%5%55%-2%11%16%11%13%13%
Equity YoY growth--31%-21%13%51%24%28%23%20%24%23%
FCF YoY growth-80%-19%39%28%14%-13%26%14%-14%3%