Hershey Price to Earnings To Growth vs. Net Income

HSY
 Stock
  

USD 234.73  2.85  1.23%   

For Hershey profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hershey to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hershey Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hershey's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hershey Co over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
Return on Sales is likely to rise to 0.22 in 2022, whereas Price to Sales Ratio is likely to drop 4.16 in 2022. Hershey Net Income is fairly stable at the moment as compared to the past year. Hershey reported Net Income of 1.48 Billion in 2021. Net Income to Non Controlling Interests is likely to rise to about 5.7 M in 2022, whereas Accumulated Other Comprehensive Income is likely to drop (268.9 M) in 2022.

Hershey Revenues

7.82 Billion

Is Hershey's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hershey. If investors know Hershey will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hershey listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.09) 
Market Capitalization
48.1 B
Quarterly Revenue Growth YOY
0.16
Return On Assets
0.14
Return On Equity
56.46
The market value of Hershey is measured differently than its book value, which is the value of Hershey that is recorded on the company's balance sheet. Investors also form their own opinion of Hershey's value that differs from its market value or its book value, called intrinsic value, which is Hershey's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hershey's market value can be influenced by many factors that don't directly affect Hershey's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hershey's value and its price as these two are different measures arrived at by different means. Investors typically determine Hershey value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hershey's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Hershey Net Income vs. Price to Earnings To Growth Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hershey's current stock value. Our valuation model uses many indicators to compare Hershey value to that of its competitors to determine the firm's financial worth.
Hershey Co is one of the top stocks in price to earnings to growth category among related companies. It is rated # 4 in net income category among related companies making up about  372,623,762  of Net Income per Price to Earnings To Growth. Hershey Net Income is fairly stable at the moment as compared to the past year. Hershey reported Net Income of 1.48 Billion in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hershey by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hershey's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hershey's earnings, one of the primary drivers of an investment's value.

Hershey Net Income vs. Price to Earnings To Growth

PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Hershey 
PEG Ratio 
 = 
PE Ratio 
EPS Growth 
3.98 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Hershey 
Net Income 
 = 
(Rev + Gain) 
-  
(Exp + Loss) 
1.48 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Hershey Net Income Comparison

Hershey is currently under evaluation in net income category among related companies.

Hershey Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hershey, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hershey will eventually generate negative long term returns. The profitability progress is the general direction of Hershey's change in net profit over the period of time. It can combine multiple indicators of Hershey, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-249.2 M-268.9 M
Consolidated Income1.5 B1.3 B
Net Income1.5 B1.6 B
Net Income Common Stock1.5 B1.3 B
Net Income to Non Controlling Interests5.3 M5.7 M
Operating IncomeB1.6 B
Income Tax Expense314.4 M307.4 M
Net Income Per Employee77.8 K63.1 K

Hershey Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hershey. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hershey position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hershey's important profitability drivers and their relationship over time.

Use Hershey in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hershey position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hershey will appreciate offsetting losses from the drop in the long position's value.

Hershey Pair Trading

Hershey Co Pair Trading Analysis

The ability to find closely correlated positions to Hershey could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hershey when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hershey - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hershey Co to buy it.
The correlation of Hershey is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hershey moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hershey moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hershey can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hershey position

In addition to having Hershey in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Marketing Thematic Idea Now

Marketing
Marketing Theme
Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Marketing Theme or any other thematic opportunities.
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Please check Risk vs Return Analysis. You can also try Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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To fully project Hershey's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hershey at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hershey's income statement, its balance sheet, and the statement of cash flows.
Potential Hershey investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hershey investors may work on each financial statement separately, they are all related. The changes in Hershey's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hershey's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.