Hershey Co., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to The Hershey Company	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Net (gain) loss attributable to noncontrolling interest	—)	5,307)	(3,295)	(2,940)	(6,511)
Net noncash charges	790,943)	604,859)	627,563)	548,739)	526,021)
Changes in assets and liabilities, net of business acquisitions and divestitures	(107,923)	(4,794)	(203,319)	68,382)	(97,079)
Net cash provided by operating activities	2,327,837)	2,082,884)	1,699,657)	1,763,873)	1,599,993)
Capital additions, including software	(519,481)	(495,877)	(441,626)	(318,192)	(328,601)
Net increase (decrease) in short-term debt	(245,633)	869,030)	41,759)	(1,168,205)	645,805)
Long-term borrowings, net of debt issuance costs	—)	—)	989,876)	989,618)	1,199,845)
Repayment of long-term debt and finance leases	(4,741)	(439,444)	(704,467)	(6,151)	(910,844)
Free cash flow to equity (FCFE)	1,557,982)	2,016,593)	1,585,199)	1,260,943)	2,206,198)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Hershey Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Hershey Co. FCFE increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Hershey Co., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	204,467,895
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	1,557,982)
FCFE per share	7.62
Current share price (P)	233.56
Valuation Ratio
P/FCFE	30.65
Benchmarks
P/FCFE, Competitors¹
Altria Group Inc.	10.80
Coca-Cola Co.	23.50
PepsiCo Inc.	17.53
Philip Morris International Inc.	16.82
P/FCFE, Sector
Food, Beverage & Tobacco	17.67
P/FCFE, Industry
Consumer Staples	31.51

Based on: 10-K (reporting date: 2022-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Hershey Co., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
No. shares of common stock outstanding¹	204,035,956	205,241,853	207,165,543	209,749,611	208,519,794
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	1,557,982)	2,016,593)	1,585,199)	1,260,943)	2,206,198)
FCFE per share³	7.64	9.83	7.65	6.01	10.58
Share price^1, 4	240.69	202.59	151.29	160.11	110.22
Valuation Ratio
P/FCFE⁵	31.52	20.62	19.77	26.63	10.42
Benchmarks
P/FCFE, Competitors⁶
Altria Group Inc.	11.96	13.06	8.86	7.97	—
Coca-Cola Co.	29.91	23.29	30.91	33.31	—
PepsiCo Inc.	47.17	77.00	10.51	38.90	—
Philip Morris International Inc.	6.64	20.46	15.06	15.65	—
P/FCFE, Sector
Food, Beverage & Tobacco	16.58	25.49	14.44	21.35	—
P/FCFE, Industry
Consumer Staples	25.12	22.89	17.29	18.06	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,557,982,000 ÷ 204,035,956 = 7.64

⁴ Closing price as at the filing date of Hershey Co. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 240.69 ÷ 7.64 = 31.52

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Hershey Co. P/FCFE ratio increased from 2020 to 2021 and from 2021 to 2022.

Hershey Co. (NYSE:HSY)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical