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Hershey Foods Corp (HSY-N) is a leading consumer packaged goods company with a dominant market share in North America. Despite the expected decline in cocoa prices, the company is facing challenges due to price increases and volume declines in its core selling season of Halloween. The stock is currently trading at a multiple of 20x earnings and offers a decent yield of 2.35%. The company's stable and resilient business model, along with consistently raised dividends and share buybacks, provides some support, but the experts are cautious about its growth potential and high valuation.
Expensive, and he's never understood why. Trades around 25-30x earnings. Most competitors trade 10-12 points lower. Pass.
Within its sector, one of the best on organic growth and margins. Weight-loss drugs are turning people off snacking. Not the growthiest company, trades at a big multiple. With interest rates coming down, investors are moving toward better growth profiles.
Unsure on direction of stock. Strong decline lately. Might be a good time to buy given small rebound in stock price.
Halloween is the core selling season. Largest chocolate producer in NA. 45% dominant share in chocolate, 30+% in general confectionery. Small, but fast-growing, salty snacks business. Small business selling into both EMs and developed markets.
Best-in-class operating margins, 10 points above peers. 26% ROIC at 3x its cost of capital, leading all peers. Best ESG rating. Pullback due to price increases and volume declines. Trades at 20x earnings vs. long-term average of 24x. Yield is 2.35%.
HSY is a mature consumer staple name and is now trading at 23x times' Forward P/E (historical averages range from 19x to 27x). HSY’s volume growth is largely mature, however, the company has decent pricing power, which helped drive revenue growth by double-digits in the last two years. The balance sheet is okay, with net debt of $4.5B and the net debt/EBITDA is now at 1.7x. Going forward revenue growth would be around 5% on average over the next few years. HSY also has consistently raised dividends and done share buybacks which we like.
Overall, stable, resilient businesses but not cheap, we think it is ok but have a hard time getting excited about a sub-5% grower (in a normal environment) trading at 23X forward earnings.
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The CEO turned it around and just reported an amazing quarter. Continue to own it.
Global leader with over 80 brands. A lot of revenues are inside NA and US, so tariffs are not a worry. Last earnings topped estimates. A defensive growth name as we get late in the cycle. Price recently pushed above 200-day moving average, which is encouraging. Pretty decent valuation for a consumer staple. Yield is 2.7%. (Analysts’ price target is $98.33.)
This was trapped in never-never land, but is starting to become a little bit more favourable. The chart is pretty volatile looking. The stock is trying to move up, but in a choppy way. If you want to continue to own this, you have to accept the fact that this can deliver a 15% haircut in a short period.
An interesting company from the perspective of having had some good returns. They’ve done a lot of work on cleaning up the costs side. However, this is a sector that he is not a big fan of. If you own, it is a name you should be happy that you have done well with, but you could now comfortably move on to a sector, like tech, that has better prospects looking forward.
Hershey Foods Corp is a American stock, trading under the symbol HSY-N on the New York Stock Exchange (HSY). It is usually referred to as NYSE:HSY or HSY-N
In the last year, 3 stock analysts published opinions about HSY-N. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hershey Foods Corp.
Hershey Foods Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Hershey Foods Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Hershey Foods Corp In the last year. It is a trending stock that is worth watching.
On 2024-04-25, Hershey Foods Corp (HSY-N) stock closed at a price of $186.58.
Added to dividend growth fund. Seasonal business with 45% market share in North America. Also has "salty snacks" brands business. Earns excellent margins on business with very strong profits. Leading ESG rated consumer packaged goods company. Tripling of coco prices expected to fall in the coming months. Very good time to buy at 20x earnings.