The Hershey Co

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HSY : NYSE : Consumer Goods
$108.19 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,796,500
07/27/16 - 4:02 PM ET

Financial Analysis

HERSHEY CO's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HERSHEY CO has very weak liquidity. Currently, the Quick Ratio is 0.36 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 34.32% 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 FY16 Q1 FY15
Net Sales ($mil)1828.811937.8
EBITDA ($mil)413.38446.12
EBIT ($mil)353.46390.05
Net Income ($mil)229.83244.74

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)285.96405.17
Total Assets ($mil)5305.845757.46
Total Debt ($mil)2591.972460.15
Equity ($mil)831.441266.07

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin47.9449.46
EBITDA Margin22.623.02
Operating Margin19.3320.13
Sales Turnover1.371.3
Return on Assets9.3814.57
Return on Equity59.966.28
Debt Q1 FY16 Q1 FY15
Current Ratio0.760.97
Interest Expense23.5323.02
Interest Coverage15.0316.94

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)214.13219.11
Div / share0.580.54
Book value / share3.885.78
Institutional Own % n/a n/a
Avg Daily Volume1839995.01265821.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 46.79 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 28.22 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 6.02. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HSY 48.28 Peers 46.79   HSY 19.46 Peers 18.09

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HSY is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HSY 23.84 Peers 23.49   HSY 0.58 Peers 1.23

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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HSY 28.22 Peers 6.02   HSY -39.63 Peers 68.51

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HSY 3.22 Peers 2.53   HSY -2.81 Peers 144.88

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.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HSY significantly trails its peers on the basis of sales growth



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