Hershey Company sells chocolate and sugar confectionery products, pantry items, such as baking ingredients, toppings, sundae syrups, and beverages, snack items, including spreads, and gum and mint refreshment products comprising chewing gums and bubble gums. The company was founded in 1894 and is based in Hershey, Pennsylvania.
HSY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Hershey Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hershey Co ranked in the 46th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 8.5%. In terms of the factors that were most noteworthy in this DCF analysis for HSY, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 9.81 -- which is good for besting 75.3% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
HSY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 29.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Hershey Co? See UTI, DL, BUD, STZ, and CPB.
In a COVID-19 business environment that is fraught with uncertainty, it is especially important to focus on acquiring shares of high-quality dividend paying stocks that are trading at or below fair value. Within the confines of high-quality dividend stocks, one can look no further than Hershey (HSY), which has been...
Hershey (HSY) reports organic constant currency net sales decreased 3.5% in Q2. Volume was a 7 point headwind, driven by COVID-19 pressures.The net impact of acquisitions and divestitures on net sales was a 0.8 point benefit, while foreign currency exchange was a 0.7 point headwind.Segment sales: North America: $1.58B (+1%); International & other: $123.5M...
Hershey Co said on Thursday it was optimistic about crucial Halloween candy sales this year with retailers still placing orders, despite concerns that a resurgence in COVID-19 cases would discourage kids from going trick-or-treating.