Stock Analysis on Net

Hershey Co. (NYSE:HSY)

This company has been moved to the archive! The financial data has not been updated since July 27, 2023.

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Hershey Co., current price multiples

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Hershey Co. Altria Group Inc. Coca-Cola Co. PepsiCo Inc. Philip Morris International Inc. Food, Beverage & Tobacco Consumer Staples
Selected Financial Data
Current share price (P) $233.56
No. shares of common stock outstanding 204,467,895
Growth rate (g) 31.77%
 
Earnings per share (EPS) $8.04
Next year expected EPS $10.60
Operating profit per share $11.06
Sales per share $50.96
Book value per share (BVPS) $16.14
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 29.03 11.67 25.33 24.00 25.95 23.65 30.99
Price to next year expected earnings 22.03 28.34 23.28 21.30 23.11 28.67
Price-earnings-growth (PEG) 0.91 2.88 1.89 10.13 3.83
Price to operating profit (P/OP) 21.12 8.22 23.99 18.17 17.54 16.89 21.52
Price to sales (P/S) 4.58 3.88 5.93 2.38 5.76 4.22 1.98
Price to book value (P/BV) 14.47 10.46 11.77 27.78 11.99

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Hershey Co., historical price multiples

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Price to earnings (P/E) 29.86 28.14 24.51 29.21 19.52
Price to operating profit (P/OP) 21.72 20.35 17.58 21.04 14.16
Price to sales (P/S) 4.71 4.63 3.85 4.21 2.95
Price to book value (P/BV) 14.88 15.08 14.03 19.31 16.43

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Hershey Co. P/E ratio increased from 2020 to 2021 and from 2021 to 2022.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Hershey Co. P/OP ratio increased from 2020 to 2021 and from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Hershey Co. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Hershey Co. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Price to Earnings (P/E)

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

Microsoft Excel
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$)
Net income attributable to The Hershey Company (in thousands) 1,644,817 1,477,512 1,278,708 1,149,692 1,177,562
Earnings per share (EPS)2 8.06 7.20 6.17 5.48 5.65
Share price1, 3 240.69 202.59 151.29 160.11 110.22
Valuation Ratio
P/E ratio4 29.86 28.14 24.51 29.21 19.52
Benchmarks
P/E Ratio, Competitors5
Altria Group Inc. 14.42 37.80 18.14
Coca-Cola Co. 27.12 27.63 27.91 28.21
PepsiCo Inc. 26.71 30.58 26.15 27.83
Philip Morris International Inc. 17.54 18.37 16.55 18.94
P/E Ratio, Sector
Food, Beverage & Tobacco 22.20 26.36 22.52 30.29
P/E Ratio, Industry
Consumer Staples 24.15 26.41 23.72 35.36

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 2022 Calculation
EPS = Net income attributable to The Hershey Company ÷ No. shares of common stock outstanding
= 1,644,817,000 ÷ 204,035,956 = 8.06

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 240.69 ÷ 8.06 = 29.86

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Hershey Co. P/E ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Operating Profit (P/OP)

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

Microsoft Excel
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$)
Operating profit (in thousands) 2,260,787 2,043,722 1,782,698 1,595,952 1,623,664
Operating profit per share2 11.08 9.96 8.61 7.61 7.79
Share price1, 3 240.69 202.59 151.29 160.11 110.22
Valuation Ratio
P/OP ratio4 21.72 20.35 17.58 21.04 14.16
Benchmarks
P/OP Ratio, Competitors5
Altria Group Inc. 6.97 8.09 7.45 7.65
Coca-Cola Co. 23.72 26.19 24.03 24.95
PepsiCo Inc. 20.67 20.87 18.47 19.78
Philip Morris International Inc. 12.96 12.90 11.43 12.92
P/OP Ratio, Sector
Food, Beverage & Tobacco 15.85 16.60 14.82 16.25
P/OP Ratio, Industry
Consumer Staples 16.77 17.52 16.82 18.03

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 2022 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 2,260,787,000 ÷ 204,035,956 = 11.08

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 240.69 ÷ 11.08 = 21.72

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Hershey Co. P/OP ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Net sales (in thousands) 10,419,294 8,971,337 8,149,719 7,986,252 7,791,069
Sales per share2 51.07 43.71 39.34 38.08 37.36
Share price1, 3 240.69 202.59 151.29 160.11 110.22
Valuation Ratio
P/S ratio4 4.71 4.63 3.85 4.21 2.95
Benchmarks
P/S Ratio, Competitors5
Altria Group Inc. 3.31 3.60 3.10 3.14
Coca-Cola Co. 6.02 6.99 6.55 6.75
PepsiCo Inc. 2.75 2.93 2.65 3.03
Philip Morris International Inc. 5.00 5.33 4.65 4.57
P/S Ratio, Sector
Food, Beverage & Tobacco 3.96 4.35 3.90 4.21
P/S Ratio, Industry
Consumer Staples 1.55 1.61 1.49 1.46

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 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 10,419,294,000 ÷ 204,035,956 = 51.07

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 240.69 ÷ 51.07 = 4.71

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Hershey Co. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Total The Hershey Company stockholders’ equity (in thousands) 3,299,544 2,757,229 2,234,352 1,739,222 1,398,721
Book value per share (BVPS)2 16.17 13.43 10.79 8.29 6.71
Share price1, 3 240.69 202.59 151.29 160.11 110.22
Valuation Ratio
P/BV ratio4 14.88 15.08 14.03 19.31 16.43
Benchmarks
P/BV Ratio, Competitors5
Altria Group Inc. 28.54 12.69
Coca-Cola Co. 10.73 11.74 11.20 13.26
PepsiCo Inc. 13.88 14.52 13.84 13.76
Philip Morris International Inc.
P/BV Ratio, Sector
Food, Beverage & Tobacco 26.07 27.95 26.79 23.59
P/BV Ratio, Industry
Consumer Staples 9.35 9.37 8.39 7.93

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 2022 Calculation
BVPS = Total The Hershey Company stockholders’ equity ÷ No. shares of common stock outstanding
= 3,299,544,000 ÷ 204,035,956 = 16.17

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 240.69 ÷ 16.17 = 14.88

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Hershey Co. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.