Now trading at a price of $200.71, Hershey has moved 1.2% so far today.
Hershey returned losses of -23.2% last year, with its stock price reaching a high of $276.88 and a low of $178.82. Over the same period, the stock underperformed the S&P 500 index by -51.1%. AThe company's 50-day average price was $193.47. The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. Based in Hershey, PA, the Large-Cap Consumer Staples company has 18,650 full time employees. Hershey has offered a 2.2% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 24.63%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,791 | $7,986 | $8,150 | $8,971 | $10,419 | $11,165 |
| Gross Margins | 46% | 45% | 45% | 45% | 43% | 45% |
| Net Margins | 15% | 14% | 16% | 16% | 16% | 17% |
| Net Income (M) | $1,178 | $1,150 | $1,279 | $1,478 | $1,645 | $1,862 |
| Net Interest Expense (M) | -$139 | -$144 | -$149 | -$127 | -$138 | -$152 |
| Depreciation & Amort. (M) | $295 | $292 | $295 | $315 | $379 | $420 |
| Diluted Shares (M) | 210 | 209 | 210 | 207 | 205 | 204 |
| Earnings Per Share | $1.6 | $5.46 | $6.11 | $7.11 | $7.96 | $9.06 |
| EPS Growth | n/a | 241.25% | 11.9% | 16.37% | 11.95% | 13.82% |
| Avg. Price | $90.45 | $124.09 | $134.99 | $163.47 | $206.36 | $200.78 |
| P/E Ratio | 56.53 | 22.73 | 22.09 | 22.99 | 25.92 | 22.16 |
| CAPEX (M) | $329 | $318 | $442 | $496 | $519 | $771 |
| EV / EBITDA | 11.31 | 15.69 | 15.26 | 15.95 | 17.42 | 14.98 |
| Total Debt (M) | $3,260 | $4,234 | $4,529 | $4,089 | $4,098 | $4,094 |
| Net Debt / EBITDA | 1.39 | 1.98 | 1.63 | 1.59 | 1.38 | 1.24 |
| Current Ratio | 0.93 | 1.05 | 1.57 | 0.9 | 0.8 | 0.97 |
Hershey has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display wider gross margins than its peer group and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.97.
Hershey's Valuation Is in Line With Its Sector Averages:
Hershey has a trailing twelve month P/E ratio of 21.4, compared to an average of 21.21 for the Consumer Staples sector. Based on its EPS guidance of $10.17, the company has a forward P/E ratio of 19.0. According to the 30.2% compound average growth rate of Hershey's historical and projected earnings per share, the company's PEG ratio is 0.71. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 16.8%. On this basis, the company's PEG ratio is 1.27. This implies that the shares are fairly valued. In contrast, Hershey is likely overvalued compared to the book value of its equity, since its P/B ratio of 10.01 is higher than the sector average of 4.12.
Hershey Has an Average Rating of Hold:
The 21 analysts following Hershey have set target prices ranging from $183.0 to $238.0 per share, for an average of $211.43 with a hold rating. The company is trading -5.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Hershey has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 80.9% of the company's shares, and the insider ownership rate stands at 0.27%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $3,047,341,696.
