HERSHEY CO's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. HERSHEY CO has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.56% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||1578.83||1578.35|
|Net Income ($mil)||-99.94||168.17|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||401.97||659.82|
|Total Assets ($mil)||5449.33||5184.97|
|Total Debt ($mil)||2413.83||1992.86|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||50.36||48.68|
|Return on Assets||10.47||16.19|
|Return on Equity||49.64||54.34|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||219.35||221.86|
|Div / share||0.54||0.49|
|Book value / share||5.24||6.97|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1185955.0||1141276.0|
HOLD. This stock's P/E ratio indicates a premium compared to an average of 28.97 for the Food Products industry and a significant premium compared to the S&P 500 average of 20.03. For additional comparison, its price-to-book ratio of 17.21 indicates a significant premium versus the S&P 500 average of 2.67 and a significant premium versus the industry average of 5.06. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HERSHEY CO proves to trade at a premium to investment alternatives within the industry.
|HSY 35.39||Peers 28.97||HSY 17.32||Peers 16.40|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
HSY is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HSY is trading at a valuation on par to its peers.
|HSY 19.92||Peers 21.10||HSY 3.61||Peers 1.54|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
HSY is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
HSY trades at a significant premium to its peers.
|HSY 17.21||Peers 5.06||HSY -31.27||Peers -0.54|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
HSY is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, HSY is expected to significantly trail its peers on the basis of its earnings growth rate.
|HSY 2.64||Peers 1.73||HSY 3.13||Peers 0.60|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
HSY is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
HSY has a sales growth rate that significantly exceeds its peers.
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