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Hershey Co

HSY

Sugar & Confectionery Products

Mkt Cap

$37.98B

PE

20.40

Debt

$4.509B

Cash

$401.9M

EV

$42.08B

FCF

$1.552B

Market Cap

$37.98B

P/E Ratio

20.40

Debt

$4.509B

Cash

$401.9M

EV

$42.08B

FCF

$1.552B
Charts data: {"Earnings":[{"time":"2014-12-30","value":846912000},{"time":"2015-12-30","value":512951000},{"time":"2016-12-30","value":720044000},{"time":"2017-12-30","value":756537000},{"time":"2018-12-30","value":1171051000},{"time":"2019-12-30","value":1146752000},{"time":"2020-12-30","value":1275413000},{"time":"2021-12-30","value":1477512000},{"time":"2022-12-30","value":1644817000},{"time":"2023-12-30","value":1861787000}],"Sales":[{"time":"2014-12-30","value":7421768000},{"time":"2015-12-30","value":7386626000},{"time":"2016-12-30","value":7440181000},{"time":"2017-12-30","value":7515426000},{"time":"2018-12-30","value":7791069000},{"time":"2019-12-30","value":7986252000},{"time":"2020-12-30","value":8149719000},{"time":"2021-12-30","value":8971337000},{"time":"2022-12-30","value":10419294000},{"time":"2023-12-30","value":11164992000}],"Net Margins":[{"time":"2014-12-30","value":0.11411189355420434},{"time":"2015-12-30","value":0.06944320722343326},{"time":"2016-12-30","value":0.09677775312186626},{"time":"2017-12-30","value":0.10066455314708707},{"time":"2018-12-30","value":0.1503068449271852},{"time":"2019-12-30","value":0.14359076072230129},{"time":"2020-12-30","value":0.15649778845135642},{"time":"2021-12-30","value":0.1646925090429665},{"time":"2022-12-30","value":0.15786261525972872},{"time":"2023-12-30","value":0.16675220188245546}],"Assets":[{"time":"2014-12-30","value":5629516000},{"time":"2015-12-30","value":5344371000},{"time":"2016-12-30","value":5524333000},{"time":"2017-12-30","value":5553726000},{"time":"2018-12-30","value":7703020000},{"time":"2019-12-30","value":8140395000},{"time":"2020-12-30","value":9131845000},{"time":"2021-12-30","value":10412231000},{"time":"2022-12-30","value":10948820000},{"time":"2023-12-30","value":11902941000}],"Stockholders Equity":[{"time":"2014-12-30","value":1519530000},{"time":"2015-12-30","value":1047462000},{"time":"2016-12-30","value":827687000},{"time":"2017-12-30","value":931565000},{"time":"2018-12-30","value":1407266000},{"time":"2019-12-30","value":1744994000},{"time":"2020-12-30","value":2237883000},{"time":"2021-12-30","value":2757229000},{"time":"2022-12-30","value":3299544000},{"time":"2023-12-30","value":4099086000}],"ROE":[{"time":"2014-12-30","value":0.5573512862529861},{"time":"2015-12-30","value":0.48970845720417544},{"time":"2016-12-30","value":0.8699472143455195},{"time":"2017-12-30","value":0.8121140231760532},{"time":"2018-12-30","value":0.8321461614222186},{"time":"2019-12-30","value":0.6571667295131101},{"time":"2020-12-30","value":0.5699194283168513},{"time":"2021-12-30","value":0.5358684389290842},{"time":"2022-12-30","value":0.49849827733771696},{"time":"2023-12-30","value":0.4541956426383833}],"ROA":[{"time":"2014-12-30","value":0.3474918625331201},{"time":"2015-12-30","value":0.19417794909821942},{"time":"2016-12-30","value":0.21826761710418252},{"time":"2017-12-30","value":0.22951096255018702},{"time":"2018-12-30","value":0.21078278389514762},{"time":"2019-12-30","value":0.19605338561580857},{"time":"2020-12-30","value":0.19521772434814652},{"time":"2021-12-30","value":0.1962808931150298},{"time":"2022-12-30","value":0.20648681775753003},{"time":"2023-12-30","value":0.2151457358311698}]}

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, bars, snack bites, mixes, popcorn, and pretzels. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

Sector

  • JBSS Logo

    JBSS

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$1.552B$1.739B$1.934B$2.137B$2.344B$2.552B$2.759B$2.962B$3.156B$3.339B$3.506B$35.06B
DCF$1.512B$1.463B$1.405B$1.34B$1.269B$1.193B$1.114B$1.032B$949.1M$866.6M$8.666B
Value$20.81B

In the chart Earnings are multiplied by this value.

Earnings Growth 16%
Earnings Stability 92%


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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin6.9%9.7%10%15%14%16%16%16%17%17%
ROA19%22%23%21%20%20%20%21%22%22%
ROE49%87%81%83%66%57%54%50%45%45%

What is the average Net Margin?

The average Net Margin over the past 5 years is +15.66%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.38%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +20.33%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.15%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +59.13%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -6.86%.


Safety & Stabiliy

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF2.894.172.943.513.423.953.172.682.912.91
Debt Equity2.443.603.143.172.832.221.821.471.101.10
MIN
Graham Stability--100%100%100%100%100%100%100%100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.91.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.17.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.


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.

Years12-201612-201812-202012-2022Trend
Revenue6%7.5%11%7.2%1.6%
Net Income15%9.7%13%13%1.7%
Stockholders Equity26%24%22%24%5.7%
FCF12%4.1%7.3%-14%-5.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.46%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.55%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +9.72%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.69%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +23.84%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +5.69%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +4.07%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -5.71%.