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:
Below please find a table outlining a discounted cash flow forecast for HSY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hershey Co ranked in the 51th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 3.5%. 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 10.74; that's higher than 73.47% of US stocks in the Consumer Defensive sector that have positive free cash flow.
HSY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 25.72% 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 FIZZ, KDP, MENB, PM, and TGT.
The Hershey Company (NYSE:HSY) Director Pamela M. Arway sold 278 shares of the stock in a transaction on Friday, January 8th. The shares were sold at an average price of $151.46, for a total transaction of $42,105.88. Following the transaction, the director now owns 15,994 shares of the company’s stock, valued at approximately $2,422,451.24. The […]
The Hershey Company (NYSE: HSY) announced today that it will release its fourth-quarter sales and earnings results on Thursday, February 4, 2021, and hold a conference call with analysts at 8:30 a.m. ET on that date. The company will webcast live its fourth-quarter conference call via the Hershey corporate website. Please click here and navigate to "CALENDAR OF EVENTS" for webcast details.