Hershey Co

Consumer Staples
Specialty Foods
www.thehersheycompany.com

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
ROE	42%
ROA	19%
FCF	$1.65B
Equity	$4.20B
Growth Stability	100%
PE	20.13
PEG	1.52
PB	8.49
P/FCF	21.59
P/S	3.25
Price/Cash	0.02
Debt/Equity	1.26
Debt/FCF	3.2
Net Margins	17%
Gross Margins	44%
Op. Margins	22%
Earnings CAGR	15%
Sales Growth YoY	-1%
Sales Growth QoQ	44%
Sales CAGR	6%
FCF CAGR	10%
Equity CAGR	19%
Earnings Stability	0.9
Earnings Growth YoY	-14%
Earnings Growth QoQ	147%

Earnings CAGR 5Y	13%
Sales CAGR 5Y	9%
FCF CAGR 5Y	3%
Equity CAGR 5Y	23%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	-5%
Equity CAGR 3Y	18%
Market Cap	$35.71B
Revenue	$10.97B
Dividend Yield	3%
Payout Ratio	59%
Assets	$12.62B
Total Debt	$5.29B
Cash	$614.95M
EV	40.38B
Earnings Score	94%
Moat Score	96%
Safety Score	88%
Final Score	93%
Working Capital	-643.21M
Current Ratio	0.85
Gross Profit	$4.87B
Equity Growth QoQ	5%
Equity Growth YoY	6%

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.

Years

Calculation mode

= $33B

	0	1	2	3	4	5	6	7	8	9	10	TV
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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	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%

Good Net Margins (17.13%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.89	4.17	2.94	3.51	3.42	3.95	3.17	2.68	3.1	3.2
Debt over Equity	1.44	2.44	3.6	3.14	3.17	2.83	2.22	1.82	1.47	1.17	1.26
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (3.2)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.26)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 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%