The Hershey Co

Find Ratings Reports
HSY : NYSE : Consumer Goods
$108.87 -0.54 | -0.49%
Today's Range: 107.73 - 109.24
Avg. Daily Volume: 1043000.0
09/20/17 - 11:31 AM ET

Financial Analysis

HERSHEY CO's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. 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 increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.49% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit

Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1662.991637.67
EBITDA ($mil)396.93422.2
EBIT ($mil)329.81325.33
Net Income ($mil)203.5145.96

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)214.06250.19
Total Assets ($mil)5380.235567.38
Total Debt ($mil)2971.813068.38
Equity ($mil)855.31727.95

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin50.2853.63
EBITDA Margin23.8625.78
Operating Margin19.8319.87
Sales Turnover1.41.32
Return on Assets12.513.36
Return on Equity78.66102.19
Debt Q2 FY17 Q2 FY16
Current Ratio1.10.68
Interest Expense25.323.0
Interest Coverage13.0414.15

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)212.42212.8
Div / share0.620.58
Book value / share4.033.42
Institutional Own % n/a n/a
Avg Daily Volume1056392.01017372.0


BUY. HERSHEY CO's P/E ratio indicates a premium compared to an average of 25.81 for the Food Products industry and a premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 27.15 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 4.59. 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 34.82 Peers 25.81   HSY 23.85 Peers 20.31

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

HSY is trading at a significant premium to its peers.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HSY 21.00 Peers 22.78   HSY 0.79 Peers 1.07

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 27.15 Peers 4.59   HSY -8.19 Peers 31.39

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 3.09 Peers 2.14   HSY 2.45 Peers 0.35

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.



Latest Stock Upgrades/Downgrades