The Hershey Company [NYSE:HSY]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to The Hershey Company [HSY], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give HSY an Hold rating. Its stock price has been found in the range of 89.29 to 128.64. This is compared to its latest closing price of $128.49.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Hershey Company [HSY] is sitting at 2.88. This is compared to 1 month ago, when its average rating was 2.88.
For the quarter ending in Mar-19 The Hershey Company [HSY] generated $2.02 billion in sales. That’s 1.04% higher than the average estimate of $2 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 25 Jul (In 69 Days).
Fundamental Analysis of The Hershey Company [HSY]
Now let’s turn to look at profitability: with a current Operating Margin for The Hershey Company [HSY] sitting at +21.90 and its Gross Margin at +45.14, this company’s Net Margin is now 14.40%. These measurements indicate that The Hershey Company [HSY] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 35.11, and its Return on Invested Capital has reached 22.70%. Its Return on Equity is 101.77, and its Return on Assets is 17.77. These metrics all suggest that The Hershey Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Hershey Company [HSY] has generated a Total Debt to Total Equity ratio of 318.69. Similarly, its Total Debt to Total Capital is 76.12, while its Total Debt to Total Assets stands at 57.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 232.66, and its Long-Term Debt to Total Capital is 55.57. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 15.01 and its Total Debt to EBITDA Value is 2.26. The Enterprise Value to Sales for this firm is now 3.79, and its Total Debt to Enterprise Value stands at 0.17. The Hershey Company [HSY] has a Price to Book Ratio of 15.65, a Price to Cash Flow Ratio of 14.13 and P/E Ratio of 24.07. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, The Hershey Company [HSY] earns $474,487 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 13.18 and its Total Asset Turnover is 1.18. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.60 and its Current Ratio is 0.93. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Hershey Company [HSY] has 206.53M shares outstanding, amounting to a total market cap of $26.54B. Its stock price has been found in the range of 89.29 to 128.64. At its current price, it has moved by 0.60% from its 52-week high, and it has moved 44.93% from its 52-week low.
This stock’s Beta value is currently 0.17, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 83.15. This RSI suggests that The Hershey Company is currently Overbought.
Conclusion: Is The Hershey Company [HSY] a Reliable Buy?
Shares of The Hershey Company [HSY], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.