HERSHEY CO's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. HERSHEY CO has weak liquidity. Currently, the Quick Ratio is 0.55 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 5.31% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||2010.03||1956.25|
|Net Income ($mil)||202.51||186.08|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||471.99||1118.51|
|Total Assets ($mil)||5629.52||5357.49|
|Total Debt ($mil)||2184.46||1962.02|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||44.21||46.42|
|Return on Assets||15.04||15.31|
|Return on Equity||55.73||51.12|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||220.92||223.9|
|Div / share||0.54||0.49|
|Book value / share||6.88||7.17|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1153928.0||1099091.0|
BUY. The current P/E ratio indicates a discount compared to an average of 35.30 for the Food Products industry and a premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 15.02 indicates a significant premium versus the S&P 500 average of 2.69 and a significant premium versus the industry average of 5.86. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|HSY 27.40||Peers 35.30||HSY NA||Peers 15.13|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
HSY is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|HSY 21.30||Peers 20.42||HSY 1.54||Peers 1.57|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
HSY is trading at a premium to its peers.
Average. 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 valuation on par to its peers.
|HSY 15.02||Peers 5.86||HSY 4.43||Peers 8.37|
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 3.07||Peers 1.78||HSY 3.85||Peers 2.74|
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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