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Hershey

NYSE:HSY
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HSY
NYSE
$27B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products. The last earnings update was 39 days ago. More info.


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HSY Share Price and Events
7 Day Returns
17.4%
NYSE:HSY
5.5%
US Food
9.9%
US Market
1 Year Returns
14.9%
NYSE:HSY
-9%
US Food
-11.9%
US Market
HSY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hershey (HSY) 17.4% -9.1% -11% 14.9% 20.1% 28.9%
US Food 5.5% -7.4% -17.7% -9% -23% 3.5%
US Market 9.9% -15% -21.5% -11.9% 5.1% 18.1%
1 Year Return vs Industry and Market
  • HSY outperformed the Food industry which returned -9% over the past year.
  • HSY outperformed the Market in United States of America which returned -11.9% over the past year.
Price Volatility
HSY
Industry
5yr Volatility vs Market

HSY Value

 Is Hershey undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hershey to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hershey.

NYSE:HSY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HSY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.561 (1 + (1- 21%) (16.32%))
0.754
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NYSE:HSY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hershey is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:HSY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.09%)
2020 1,148.20 Analyst x5 1,082.27
2021 1,341.43 Analyst x7 1,191.80
2022 1,431.25 Analyst x4 1,198.58
2023 1,514.50 Analyst x2 1,195.47
2024 1,724.00 Analyst x1 1,282.70
2025 1,831.85 Est @ 6.26% 1,284.68
2026 1,921.63 Est @ 4.9% 1,270.26
2027 1,997.59 Est @ 3.95% 1,244.64
2028 2,063.29 Est @ 3.29% 1,211.76
2029 2,121.56 Est @ 2.82% 1,174.44
Present value of next 10 years cash flows $12,136.00
NYSE:HSY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,121.56 × (1 + 1.74%) ÷ (6.09% – 1.74%)
$49,597.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $49,597.33 ÷ (1 + 6.09%)10
$27,455.66
NYSE:HSY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,136.00 + $27,455.66
$39,591.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $39,591.66 / 209.75
$188.76
NYSE:HSY Discount to Share Price
Calculation Result
Value per share (USD) From above. $188.76
Current discount Discount to share price of $130.84
= -1 x ($130.84 - $188.76) / $188.76
30.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hershey is available for.
Intrinsic value
31%
Share price is $130.84 vs Future cash flow value of $188.76
Current Discount Checks
For Hershey to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hershey's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hershey's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hershey's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hershey's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HSY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.49
NYSE:HSY Share Price ** NYSE (2020-03-27) in USD $130.84
United States of America Food Industry PE Ratio Median Figure of 42 Publicly-Listed Food Companies 17.83x
United States of America Market PE Ratio Median Figure of 2,945 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hershey.

NYSE:HSY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HSY Share Price ÷ EPS (both in USD)

= 130.84 ÷ 5.49

23.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hershey is overvalued based on earnings compared to the US Food industry average.
  • Hershey is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hershey's expected growth come at a high price?
Raw Data
NYSE:HSY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
6.3%per year
United States of America Food Industry PEG Ratio Median Figure of 29 Publicly-Listed Food Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

NYSE:HSY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.84x ÷ 6.3%

3.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hershey is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hershey's assets?
Raw Data
NYSE:HSY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $8.33
NYSE:HSY Share Price * NYSE (2020-03-27) in USD $130.84
United States of America Food Industry PB Ratio Median Figure of 68 Publicly-Listed Food Companies 1.59x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.26x
NYSE:HSY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HSY Share Price ÷ Book Value per Share (both in USD)

= 130.84 ÷ 8.33

15.71x

* Primary Listing of Hershey.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hershey is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Hershey's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Hershey has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HSY Future Performance

 How is Hershey expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hershey expected to grow at an attractive rate?
  • Hershey's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Hershey's earnings growth is positive but not above the United States of America market average.
  • Hershey's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HSY Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HSY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 6.3%
NYSE:HSY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.2%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HSY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HSY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 8,924 1
2023-12-31 8,797 2
2022-12-31 8,520 1,719 1,398 5
2021-12-31 8,357 1,663 1,355 15
2020-12-31 8,201 1,605 1,294 15
2020-03-30
NYSE:HSY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 7,986 1,764 1,150
2019-09-29 7,906 1,701 1,279
2019-06-30 7,851 1,676 1,218
2019-03-31 7,836 1,578 1,132
2018-12-31 7,791 1,600 1,178
2018-09-30 7,743 1,516 1,022
2018-07-01 7,696 1,517 1,031
2018-04-01 7,608 1,367 1,008
2017-12-31 7,515 1,250 783
2017-10-01 7,546 1,189 719
2017-07-02 7,516 980 673
2017-04-02 7,491 978 615

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hershey's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
  • Hershey's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HSY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Hershey Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HSY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 6.77 6.79 6.75 3.00
2021-12-31 6.52 6.75 6.40 7.00
2020-12-31 6.17 6.19 6.14 7.00
2020-03-30
NYSE:HSY Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.49
2019-09-29 6.10
2019-06-30 5.81
2019-03-31 5.40
2018-12-31 5.61
2018-09-30 4.86
2018-07-01 4.89
2018-04-01 4.76
2017-12-31 3.69
2017-10-01 3.38
2017-07-02 3.16
2017-04-02 2.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hershey is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Hershey's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hershey has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HSY Past Performance

  How has Hershey performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hershey's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hershey's year on year earnings growth rate has been positive over the past 5 years.
  • Hershey's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hershey's 1-year earnings growth is negative, it can't be compared to the US Food industry average.
Earnings and Revenue History
Hershey's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hershey Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HSY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,986.25 1,149.69 1,906.51 37.15
2019-09-29 7,906.03 1,279.30 1,849.84 38.52
2019-06-30 7,851.20 1,217.70 1,812.91 38.52
2019-03-31 7,835.60 1,131.72 1,798.85 38.52
2018-12-31 7,791.07 1,177.56 1,816.46 38.52
2018-09-30 7,742.80 1,021.90 1,813.31 45.85
2018-07-01 7,696.33 1,031.49 1,856.87 45.85
2018-04-01 7,607.71 1,008.14 1,865.75 45.85
2017-12-31 7,515.43 782.98 1,861.96 45.85
2017-10-01 7,546.03 718.70 1,856.72 47.27
2017-07-02 7,516.37 672.80 1,830.96 47.27
2017-04-02 7,491.05 615.26 1,838.89 47.27
2016-12-31 7,440.18 720.04 1,870.01 47.27
2016-10-02 7,379.16 816.58 1,830.15 49.28
2016-07-03 7,336.48 743.94 1,848.34 49.28
2016-04-03 7,277.64 498.05 1,841.75 49.28
2015-12-31 7,386.63 512.95 1,889.07 49.28
2015-10-04 7,487.43 502.08 1,960.04
2015-07-05 7,488.23 571.05 1,946.22
2015-04-05 7,487.76 839.15 1,927.55
2014-12-31 7,421.77 846.91 1,834.51 47.55
2014-09-28 7,367.99 830.48 1,910.59
2014-06-29 7,260.30 839.72 1,916.44
2014-03-30 7,190.47 831.06 1,932.71
2013-12-31 7,146.08 820.47 1,920.35
2013-09-29 6,940.86 784.27 1,854.26
2013-06-30 6,833.68 728.01 1,793.36
2013-03-31 6,739.61 704.19 1,737.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Hershey made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Hershey used its assets more efficiently than the US Food industry average last year based on Return on Assets.
  • Hershey's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hershey's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hershey has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HSY Health

 How is Hershey's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hershey's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hershey is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hershey's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hershey's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hershey Company Filings, last reported 2 months ago.

NYSE:HSY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,744.99 4,186.84 493.26
2019-09-29 1,761.59 4,442.43 302.64
2019-06-30 1,684.08 4,048.79 365.96
2019-03-31 1,423.36 4,330.47 465.97
2018-12-31 1,407.27 4,355.62 588.00
2018-09-30 1,249.27 4,706.22 823.79
2018-07-01 1,063.82 4,601.02 467.35
2018-04-01 989.66 4,609.48 476.43
2017-12-31 931.57 2,821.29 380.18
2017-10-01 838.98 3,169.82 275.06
2017-07-02 869.98 2,971.81 214.06
2017-04-02 845.45 2,838.59 235.03
2016-12-31 827.69 2,980.17 296.97
2016-10-02 942.07 3,224.87 333.33
2016-07-03 774.66 3,068.38 250.19
2016-04-03 879.35 2,591.97 285.96
2015-12-31 1,047.46 2,460.83 346.53
2015-10-04 937.13 2,768.59 343.91
2015-07-05 1,238.27 2,435.33 401.97
2015-04-05 1,344.52 2,518.01 405.17
2014-12-31 1,519.53 2,177.82 471.99
2014-09-28 1,607.86 2,462.18 580.48
2014-06-29 1,608.56 1,992.86 659.82
2014-03-30 1,669.06 1,976.48 1,006.10
2013-12-31 1,616.05 1,962.02 1,118.51
2013-09-29 1,350.58 1,906.39 701.33
2013-06-30 1,121.73 1,896.89 568.36
2013-03-31 1,112.56 1,893.28 730.10
  • Hershey's level of debt (239.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (143.7% vs 239.9% today).
  • Debt is well covered by operating cash flow (42.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.6x coverage).
X
Financial health checks
We assess Hershey's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hershey has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HSY Dividends

 What is Hershey's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.36%
Current annual income from Hershey dividends. Estimated to be 2.62% next year.
If you bought $2,000 of Hershey shares you are expected to receive $47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hershey's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.98%).
  • Hershey's dividend is below the markets top 25% of dividend payers in United States of America (5.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HSY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 3.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HSY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 3.71 5.00
2021-12-31 3.47 10.00
2020-12-31 3.26 10.00
2020-03-30
NYSE:HSY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-30 3.092 2.122
2019-10-24 3.092 2.102
2019-07-25 3.092 2.003
2019-04-25 2.888 2.161
2019-01-31 2.888 2.580
2018-10-25 2.888 2.705
2018-07-26 2.888 2.834
2018-05-04 2.624 2.835
2018-02-01 2.624 2.689
2017-10-06 2.624 2.383
2017-07-26 2.624 2.454
2017-05-02 2.472 2.256
2017-02-03 2.472 2.280
2016-10-14 2.472 2.449
2016-07-28 2.472 2.421
2016-05-04 2.332 2.364
2016-01-28 2.332 2.557
2015-10-06 2.332 2.639
2015-08-07 2.332 2.559
2015-04-27 2.140 2.327
2015-01-29 2.140 2.101
2014-10-03 2.140 2.152
2014-07-24 2.140 2.330
2014-04-28 1.940 2.009
2014-01-30 1.940 1.885
2013-10-08 1.940 2.004
2013-07-25 1.940 2.073
2013-04-30 1.680 1.877
2013-01-31 1.680 1.987
2012-10-25 1.680 2.290
2012-08-07 1.520 2.126
2012-04-30 1.520 2.190
2012-02-01 1.520 2.482
2011-10-03 1.380 2.332
2011-08-02 1.380 2.406
2011-04-28 1.380 2.452
2011-02-02 1.380 2.583
2010-10-05 1.280 2.659
2010-08-03 1.280 2.731
2010-05-04 1.280 2.638
2010-02-02 1.280 3.050
2009-10-09 1.190 3.205
2009-08-04 1.190 3.034
2009-04-29 1.190 3.271

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hershey's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Hershey's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hershey afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hershey has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HSY Management

 What is the CEO of Hershey's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michele Buck
COMPENSATION $11,718,372
AGE 57
TENURE AS CEO 3 years
CEO Bio

Ms. Michele Gross Buck has been the Chairman at The Hershey Company since October 14, 2019 and its Chief Executive Officer and President since March 1, 2017. Ms. Buck is responsible for all day-to-day global operations and commercial activities of Hershey Company. Ms. Buck served as the Chief Operating Officer and Executive Vice President at The Hershey Company from June 2, 2016 to March 1, 2017 and also served as its President of North America since May 13, 2013 to June 2016. Having served at Hershey Company for more than 12 years and as an executive in the consumer packaged goods industry for more than 25 years, Ms. Buck is a valuable contributor to the Board in the areas of marketing, consumer products, strategy, supply chain management and mergers and acquisitions. Ms. Buck had full profit and loss responsibility for Hershey's North America business which represents the company's largest, most profitable markets, in the U.S. and Canada. She led Hershey's North American day-to-day commercial operations and is building on the company's competitive advantages. Ms. Buck served as a Senior Vice President of Hershey Co. since December 2007 to May 2013 and served as its Chief Growth Officer since September 21, 2011 to May 2013 and Global Chief Marketing Officer from December 2007 to September 2011. She served as the Chief Marketing Officer of US Commercial Group of Hershey Foods Corp. since November 21, 2005. She was responsible for driving world-class marketing and transformational growth platforms across Hershey Foods and lead its efforts in the areas of consumer insights, portfolio strategy and innovation, The Hershey Experience, marketing excellence and corporate social responsibility. Before joining Hershey in 2005, Ms. Buck served 17 years at Kraft/Nabisco and at the Frito-Lay division of PepsiCo in various senior roles. Among the many household names she has been responsible for during the course of her long career at Nabisco and Kraft are Jell-O, Cool Whip, Life-Savers, Planters, Altoids and Light n' Lively and Breyers Yogurt. Ms. Buck began her career as an assistant product manager with Frito-Lay in 1987. She served as President Of U.S. Snacks Group of Hershey Foods Corp. since April 15, 2005. Ms. Buck joined Hershey from Kraft Foods, where She served as Senior Vice President and General Manager for Kraft Confections. In that position, She had responsibility for the Kraft U.S. confections business including its LifeSavers, Altoids, CremeSavers and Toblerone brands. Her previous positions with Kraft include Vice President of Marketing for Confections; and Vice President of Marketing for Planters snack nuts. She served marketing positions with Kraft General Foods. She has been a Director of New York Life Insurance Company since November 1, 2013 and has been its Lead Director since July 1, 2018. She has been a Director of The Hershey Company since March 2017. Ms. Buck is ranked as one of Fortune’s Most Powerful Women and serves as the Benefit Co-Chair of the Children’s Brain Tumor Foundation. Ms. Buck holds a Master of Business Administration from the University of North Carolina and a Bachelor of Science degree in business administration from Shippensburg University.

CEO Compensation
  • Michele's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michele's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hershey management team in years:

2.8
Average Tenure
51
Average Age
  • The tenure for the Hershey management team is about average.
Management Team

Michele Buck

TITLE
Chairman
COMPENSATION
$12M
AGE
57
TENURE
3 yrs

Terry O'Day

TITLE
Senior VP
COMPENSATION
$2M
AGE
69
TENURE
2.8 yrs

Steve Voskuil

TITLE
Senior VP
AGE
51
TENURE
0.8 yrs

Melissa Poole

TITLE
Vice President of Investor Relations

Damien Atkins

TITLE
Senior VP
AGE
48
TENURE
1.6 yrs

Rob Gehring

TITLE
Global Chief Sales Officer
TENURE
4.2 yrs

Chris Scalia

TITLE
Senior VP & Chief Human Resources Officer
AGE
43
TENURE
0.2 yrs

Steven Schiller

TITLE
President of International
TENURE
3 yrs

Doug Straton

TITLE
Chief Digital Commerce Officer

Jason Reiman

TITLE
Senior VP & Chief Supply Chain Officer
Board of Directors Tenure

Average tenure and age of the Hershey board of directors in years:

4.7
Average Tenure
65.5
Average Age
  • The tenure for the Hershey board of directors is about average.
Board of Directors

Michele Buck

TITLE
Chairman
COMPENSATION
$12M
AGE
57
TENURE
0.4 yrs

Chuck Davis

TITLE
Lead Independent Director
COMPENSATION
$368K
AGE
71
TENURE
0.4 yrs

David Shedlarz

TITLE
Independent Director
COMPENSATION
$275K
AGE
71
TENURE
11.6 yrs

Tony Palmer

TITLE
Independent Director
COMPENSATION
$270K
AGE
59
TENURE
8.9 yrs

Rob Malcolm

TITLE
Independent Director
COMPENSATION
$275K
AGE
67
TENURE
8.3 yrs

Mary Haben

TITLE
Independent Director
COMPENSATION
$275K
AGE
63
TENURE
6.6 yrs

Pamela Arway

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
9.8 yrs

James Brown

TITLE
Independent Director
COMPENSATION
$260K
AGE
67
TENURE
2.8 yrs

Mary Koken

TITLE
Independent Director
COMPENSATION
$256K
AGE
66
TENURE
2.8 yrs

Wendy Schoppert

TITLE
Independent Director
COMPENSATION
$271K
AGE
53
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Hershey individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 20 Sell Michele Buck Individual 10. Mar 20 10. Mar 20 -1,500 $152.97 $-229,455
15. Nov 19 Sell Milton Hershey School Trust Company 13. Nov 19 13. Nov 19 -6,800 $145.06 $-986,409
28. Aug 19 Sell Milton Hershey School Trust Company 26. Aug 19 26. Aug 19 -3,100 $158.38 $-490,970
05. Aug 19 Sell Milton Hershey School Trust Company 01. Aug 19 01. Aug 19 -6,000 $153.05 $-918,270
01. Aug 19 Sell Milton Hershey School Trust Company 30. Jul 19 30. Jul 19 -10,000 $152.82 $-1,528,154
31. May 19 Buy Steven Voskuil Individual 31. May 19 31. May 19 1,000 $129.14 $129,140
31. May 19 Buy Damien Atkins Individual 30. May 19 30. May 19 100 $130.10 $13,010
30. May 19 Buy Todd Tillemans Individual 30. May 19 30. May 19 2,000 $129.92 $259,840
24. May 19 Sell Anthony Palmer Individual 23. May 19 23. May 19 -5,000 $130.43 $-652,150
X
Management checks
We assess Hershey's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hershey has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HSY News

Simply Wall St News

If You Like EPS Growth Then Check Out Hershey (NYSE:HSY) Before It's Too Late

Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. … View our latest analysis for Hershey Hershey's Earnings Per Share Are Growing. … You can't deny that Hershey has grown its earnings per share at a very impressive rate.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On The Hershey Company (NYSE:HSY)

Over the past 10 years The Hershey Company (NYSE:HSY) has been paying dividends to shareholders. … The company currently pays out a dividend yield of 2.6% to shareholders, making it a relatively attractive dividend stock. … 5 checks you should use to assess a dividend stock

Simply Wall St -

What Should You Know About The Hershey Company's (NYSE:HSY) Capital Returns?

and want to begin learning the link between The Hershey Company (NYSE:HSY)’s return fundamentals and stock market performance. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Hershey is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

The Hershey Company (NYSE:HSY): Dividend Is Coming In 2 Days, Should You Buy?

Investors who want to cash in on The Hershey Company's (NYSE:HSY) upcoming dividend of US$0.72 per share have only 2 days left to buy the shares before its ex-dividend date, 23 August 2018, in time for dividends payable on the 14 September 2018. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Can The Hershey Company (NYSE:HSY) Continue To Outperform Its Industry?

and want to begin learning the link between company’s fundamentals and stock market performance. … The Hershey Company (NYSE:HSY) outperformed the packaged foods and meats industry on the basis of its ROE – producing a higher 96.78% relative to the peer average of 12.26% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden.

Simply Wall St -

What Should Investors Know About The Hershey Company's (NYSE:HSY) Return On Capital?

and want a simplistic look at the return on The Hershey Company (NYSE:HSY) stock. … Thus, to understand how your money can grow by investing in Hershey, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … What is Return on Capital Employed (ROCE)?

Simply Wall St -

How The Hershey Company's (NYSE:HSY) Earnings Growth Stacks Up Against The Industry

When The Hershey Company (NYSE:HSY) released its most recent earnings update (01 April 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Being able to interpret how well Hershey has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. … HSY's trailing twelve-month earnings (from 01 April 2018) of US$1.01b has

Simply Wall St -

Is The Hershey Company (NYSE:HSY) A Sell At Its Current PE Ratio?

But should this fair multiple be the final verdict of HSY’s fair valuation. … This is because multiples like PE tend to overlook key company-specific factors such as future growth and capital structure … To resolve this problem, I’ll identify some important factors to consider when judging the relative valuation of

Simply Wall St -

Why The Hershey Company (NYSE:HSY) Is An Attractive Stock On Right Now

I've been keeping an eye on The Hershey Company (NYSE:HSY) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe HSY has a lot to offer.

Simply Wall St -

Does The Hershey Company's (NYSE:HSY) PE Ratio Warrant A Buy?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between The Hershey Company (NYSE:HSY)’s fundamentals and stock market performance. … While this makes HSY appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

HSY Company Info

Description

The Hershey Company, together with its subsidiaries, manufactures and sells confectionery products. The company operates through two segments, North America; and International and Other. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products comprising mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items, including spreads, meat snacks, bars and snack bites, mixes, popcorn and protein bars, and cookies. The company provides its products primarily under the Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Lancaster, Payday, Rolo, Twizzlers, Whoppers, York, Scharffen Berger, Dagoba, Ice Breakers, Breathsavers, Bubble Yum, SkinnyPop, Pirate's Booty, Oatmega, Paqui, ONE, and Krave brands, as well as under the Pelon Pelo Rico, IO-IO, Nutrine, Maha Lacto, Jumpin, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The Hershey Company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

Details
Name: The Hershey Company
HSY
Exchange: NYSE
Founded: 1894
$27,443,639,103
209,749,611
Website: http://www.thehersheycompany.com
Address: The Hershey Company
19 East Chocolate Avenue,
Hershey,
Pennsylvania, 17033,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HSY Common Stock New York Stock Exchange US USD 02. Jan 1968
DB HSY Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0J4X Common Stock London Stock Exchange GB USD 02. Jan 1968
BRSE HSY Common Stock Berne Stock Exchange CH CHF 02. Jan 1968
BMV HSY * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA HSHY34 BDR REPR 1/5 COM USD1.00 Bolsa de Valores de Sao Paulo BR BRL 27. Jul 2015
Number of employees
Current staff
Staff numbers
15,330
Hershey employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 00:59
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.