Hershey Foods Return On Asset vs. Retained Earnings

HSY
 Stock
  

USD 220.47  3.33  1.49%   

For Hershey Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hershey Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hershey Foods Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hershey Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hershey Foods Corp over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
Is Hershey Foods' 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 Foods. 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 Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hershey Foods Corp 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 Foods' value that differs from its market value or its book value, called intrinsic value, which is Hershey Foods' 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 Foods' market value can be influenced by many factors that don't directly affect Hershey Foods' 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 Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine Hershey Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hershey Foods' 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 Foods Corp Retained Earnings vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hershey Foods's current stock value. Our valuation model uses many indicators to compare Hershey Foods value to that of its competitors to determine the firm's financial worth.
Hershey Foods Corp is one of the top stocks in return on asset category among related companies. It is one of the top stocks in retained earnings category among related companies reporting about  93,137,869  of Retained Earnings per Return On Asset. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hershey Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hershey Foods' 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 Foods' earnings, one of the primary drivers of an investment's value.

Hershey Retained Earnings vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Hershey Foods 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
14.22 %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Hershey Foods 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
1.32 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Hershey Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hershey Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hershey Foods will eventually generate negative long term returns. The profitability progress is the general direction of Hershey Foods' change in net profit over the period of time. It can combine multiple indicators of Hershey Foods, 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.
The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products gum and mint refreshment products, including mints, chewing gums, and bubble gums pantry items, such as baking ingredients, toppings, beverages, and sundae syrups and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hersheys, Reeses, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lilys, SkinnyPop, Pirates Booty, Paqui, Dots Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

Hershey Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hershey Foods. 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 Foods 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 Foods' important profitability drivers and their relationship over time.

Use Hershey Foods 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 Foods 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 Foods will appreciate offsetting losses from the drop in the long position's value.

Hershey Foods Pair Trading

Hershey Foods Corp Pair Trading Analysis

The ability to find closely correlated positions to Hershey Foods 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 Foods 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 Foods - 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 Foods Corp to buy it.
The correlation of Hershey Foods 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 Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hershey Foods Corp 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 Foods 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 Foods position

In addition to having Hershey Foods 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.

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Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 31 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 Momentum Theme or any other thematic opportunities.
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Please check Risk vs Return Analysis. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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To fully project Hershey Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hershey Foods Corp 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 Foods' income statement, its balance sheet, and the statement of cash flows.
Potential Hershey Foods investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hershey Foods investors may work on each financial statement separately, they are all related. The changes in Hershey Foods's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hershey Foods'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.