HERSHEY CO's gross profit margin for the first quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. HERSHEY CO has very weak liquidity. Currently, the Quick Ratio is 0.47 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, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 18.03% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||1937.8||1871.81|
|Net Income ($mil)||244.74||252.5|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||405.17||1006.1|
|Total Assets ($mil)||5757.46||5428.85|
|Total Debt ($mil)||2460.15||1976.48|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||46.56||49.2|
|Return on Assets||14.57||15.3|
|Return on Equity||63.77||51.76|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||221.05||223.31|
|Div / share||0.54||0.49|
|Book value / share||5.95||7.19|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1227437.0||1090945.0|
BUY. The current P/E ratio indicates a discount compared to an average of 28.57 for the Food Products industry and a premium compared to the S&P 500 average of 20.65. For additional comparison, its price-to-book ratio of 15.95 indicates a significant premium versus the S&P 500 average of 2.85 and a significant premium versus the industry average of 6.19. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|HSY 25.25||Peers 28.57||HSY NA||Peers 16.77|
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 20.03||Peers 21.07||HSY 1.67||Peers 2.17|
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.
Discount. 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 discount to its peers.
|HSY 15.95||Peers 6.19||HSY 2.73||Peers -42.45|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
HSY is expected to have an earnings growth rate that significantly exceeds its peers.
|HSY 2.80||Peers 1.83||HSY 4.13||Peers 2.44|
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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