The Hershey Company
The Hershey Company manufactures and sells confectionery products and pantry items globally. It operates through three segments: North America Confectionery, North America Salty Snacks, and International. Products include chocolate, gum, mints, protein bars, baking ingredients, and snack items. The company offers its products under various brands and markets them to various retailers. Its products are exported to approximately 80 countries worldwide.
Overview
Strengths
- Current Price to Earnings Ratio (15.21) is lower than the sector mean (36.15).
- The company has high returns. ROIC (25.98%) is higher than the sector mean (10.87%).
- EV/EBIT (14.38) is lower than the sector mean.
- Price to free cash flow (17.55) is lower than the sector mean.
- Strong EBITDA Margin of 30.14%.
Weaknesses
- With a depreciation Potential of -64.10%, based on our fundamental analysis, it suggests the stock may be overvalued.
- Price to book ratio (7.17) is significantly higher than the sector mean (3.14).
- Analysts expect revenues to decline in the coming year.
- The company has high debt. Net Debt to EBITDA Ratio (1.27) is higher than the sector mean.
Key Financial Data
| Indicator | Value |
|---|
| PER | 15.2 |
| EV/EBITDA | 11.3 |
| Price/Free Cash Flow' | 17.6 |
| ROIC | 26.0% |
| Net Debt/EBITDA | 1.3 |