The Hershey CoFind Ratings Reports
HERSHEY CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged 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 weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||2003.45||1960.78|
|Net Income ($mil)||227.4||154.77|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||333.33||343.91|
|Total Assets ($mil)||5845.41||5630.62|
|Total Debt ($mil)||3224.87||2768.59|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||47.94||49.13|
|Return on Assets||13.96||8.91|
|Return on Equity||91.19||56.5|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||213.6||216.75|
|Div / share||0.62||0.58|
|Book value / share||4.19||4.1|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1135555.0||1356795.0|
BUY. The current P/E ratio indicates a discount compared to an average of 36.79 for the Food Products industry and a premium compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 24.97 indicates a significant premium versus the S&P 500 average of 2.84 and a significant premium versus the industry average of 4.93. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|HSY 27.69||Peers 36.79||HSY 21.50||Peers 17.98|
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.
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.
|HSY 22.54||Peers 22.09||HSY 0.32||Peers 1.93|
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.
|HSY 24.97||Peers 4.93||HSY 68.75||Peers 203.26|
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 3.03||Peers 2.30||HSY -1.45||Peers 25.88|
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