The Hershey Co

Find Ratings Reports
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.

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 www.TheStreetRatings.com.



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
Debt/Capital0.760.66
Interest Expense23.5323.02
Interest Coverage15.0316.94


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)214.13219.11
Div / share0.580.54
EPS1.061.1
Book value / share3.885.78
Institutional Own % n/a n/a
Avg Daily Volume1839995.01265821.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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

 

 

Latest Stock Upgrades/Downgrades