The Hershey Co. (HSY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

Mondelez International, Inc.

Darling Ingredients, Inc.

Ingredion, Inc.

The J. M. Smucker Co.

Kellanova

Post Holdings, Inc.

Lamb Weston Holdings, Inc.

The Hershey Co.

International Flavors & Fragrances, Inc.

Conagra Brands, Inc.

Why is The Hershey Co. ?

OPERATING CASH FLOW(Y) Lowest at USD 2,145.75 MM
ROCE(HY) Lowest at 35.89%
INTEREST COVERAGE RATIO(Q) Lowest at 647.7

Underperformed the market in the last 1 year

The stock has generated a return of 2.59% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Hershey Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Hershey Co.

20.38%

-0.18

27.37%

S&P 500

17.45%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.49%

EBIT Growth (5y)

-2.68%

EBIT to Interest (avg)

15.74

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.17

Tax Ratio

9.02%

Dividend Payout Ratio

126.17%

Pledged Shares

Institutional Holding

92.00%

ROCE (avg)

29.26%

ROE (avg)

53.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.15

EV to EBIT

23.11

EV to EBITDA

18.87

EV to Capital Employed

4.99

EV to Sales

4.08

PEG Ratio

Dividend Yield

2.71%

ROCE (Latest)

21.59%

ROE (Latest)

34.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 100.89%

DEBT-EQUITY RATIO (HY)

Lowest at 100.28 %

NET SALES(Q)

Highest at USD 3,181.42 MM

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,292.42 MM

INTEREST(HY)

At USD 112.05 MM has Grown at 29.85%

ROCE(HY)

Lowest at 31.01%

PRE-TAX PROFIT(Q)

At USD 347.28 MM has Fallen at -40.47%

NET PROFIT(Q)

At USD 258.02 MM has Fallen at -48.59%

RAW MATERIAL COST(Y)

Grown by 22.05% (YoY

Here's what is working for The Hershey Co.

Net Sales

Highest at USD 3,181.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 100.28 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 100.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 127.78 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for The Hershey Co.

Pre-Tax Profit

At USD 347.28 MM has Fallen at -40.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 258.02 MM has Fallen at -48.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 112.05 MM has Grown at 29.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 2,292.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 22.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales