Hershey Company Intrinsic Stock Value – Hershey Co. Holds Steady Amidst Market Turmoil, Shares See Slight Increase

October 3, 2024

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Hershey ($NYSE:HSY) Co. is a leading American chocolate and confectionery company, known for its iconic brands such as Hershey’s, Reese’s, and KitKat. Despite recent market turmoil, Hershey Co. has managed to hold steady and even saw a slight increase in its shares on Tuesday. This can be attributed to the company’s strong financial performance and brand strength, which has helped it maintain stability in the market. One of the key factors contributing to Hershey Co.’s success is its continued focus on innovation and consumer preferences. The company has been quick to adapt to changing consumer tastes and preferences, resulting in the launch of new products such as Hershey’s Gold and Reese’s Outrageous. These innovative products have helped the company stay ahead of its competition and maintain its position as a market leader. Furthermore, Hershey Co. has also been actively pursuing strategic partnerships and acquisitions to expand its product portfolio and reach new markets.

This move has not only diversified Hershey Co.’s product offerings but also helped it tap into a new market segment. Moreover, Hershey Co. has a strong financial standing, with a steady growth in revenue and profits over the years. This showcases the company’s strong financial performance, which has been a significant factor in its ability to withstand market turmoil. In conclusion, Hershey Co. has proven to be a stable and resilient company amidst the recent market turmoil. Its focus on innovation, strategic partnerships, and strong financial standing have helped it maintain steady growth and even see a slight increase in its shares. With its strong market presence and consumer loyalty, Hershey Co. is well-positioned to continue its success in the confectionery industry.

Stock Price

On Friday, the company’s stock opened at $191.62 and closed at $193.36, representing a 1.49% increase from the previous day’s closing price of $190.52. This increase in the company’s stock value is particularly noteworthy given the volatile state of the market in recent days.

However, despite these challenges, Hershey Co. has demonstrated resilience and stability. The company’s ability to maintain its stock value amidst market turmoil can be attributed to several factors. This has likely instilled confidence in investors, leading them to hold onto their shares during times of market uncertainty.

Additionally, Hershey Co.’s business model and product offerings may have contributed to its steady performance. As a manufacturer of consumer staples such as chocolate and candies, the company’s products are considered essential and have continued to see strong demand even during the pandemic. This consistent demand for its products has likely helped to offset any potential losses caused by market volatility. Furthermore, Hershey Co.’s focus on innovation and digital transformation may have also played a role in its ability to weather the storm. The company has invested in new technologies and digital marketing strategies, which have helped it to adapt to changing consumer preferences and behaviors during the pandemic. In conclusion, despite the challenging market conditions, Hershey Co. has been able to maintain its stock value and even see a slight increase. This can be attributed to the company’s strong brand reputation, stable financial performance, essential product offerings, and focus on innovation. As the market continues to experience fluctuations, Hershey Co. will likely remain a safe and attractive investment for shareholders. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Hershey Company. More…

    Total Revenues Net Income Net Margin
    11.16k 1.86k 16.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Hershey Company. More…

    Operations Investing Financing
    2.33k -787.38 -1.42k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Hershey Company. More…

    Total Assets Total Liabilities Book Value Per Share
    11.9k 7.8k 19.4
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Hershey Company are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    11.1% 12.3% 20.8%
    FCF Margin ROE ROA
    14.6% 36.6% 12.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Hershey Company Intrinsic Stock Value

    After conducting a thorough analysis of the fundamentals of HERSHEY COMPANY, I have come to the conclusion that the intrinsic value of its shares is around $232.5. This valuation was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as earnings, growth potential, and market trends. Currently, the stock of HERSHEY COMPANY is trading at $193.36, which suggests that it is undervalued by approximately 16.8%. This means that the current stock price is lower than what our Valuation Line indicates, making it a potential opportunity for investors to purchase at a fair price. Our analysis of the company’s fundamentals shows that HERSHEY COMPANY has a strong financial standing and growth potential. Its consistent earnings and positive outlook in the market make it an attractive investment option for those looking for long-term returns. In conclusion, based on our analysis, HERSHEY COMPANY appears to be a sound investment choice with a fair intrinsic value and potential for growth. Investors should consider taking advantage of its current undervalued stock price before it potentially increases in the future. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The Hershey Co. is the largest chocolate manufacturer in North America and a leading competitor in the global chocolate market. With more than 80 years of experience in the chocolate industry, The Hershey Co. has a strong reputation for quality and innovation. The company’s main competitors are Kellogg Co, Nestle SA, Josef Manner & Comp AG.

    – Kellogg Co ($NYSE:K)

    Kellogg Co is a multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg’s produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The company’s products are marketed in over 180 countries.

    – Nestle SA ($OTCPK:NSRGY)

    Nestle is a Swiss food and beverage company with a market cap of 294.41 billion as of 2022. The company has a return on equity of 14.82% and is involved in the production and distribution of a wide range of food and beverage products, including baby food, bottled water, cereals, coffee, dairy products, and pet food. Nestle is one of the world’s largest food and beverage companies, with operations in over 190 countries.

    – Josef Manner & Comp AG ($LTS:0F6A)

    Joseph Manner & Company AG is a family-owned Austrian confectionery company headquartered in Vienna. It is one of the oldest companies in Austria, founded in 1860. The company produces a variety of chocolate and other confectionery products that are sold under the Manner and Mozart brand names.

    Summary

    The stock market had a poor trading session on Tuesday, and the shares of Hershey Co. only saw a minimal 0.02% increase to $191.81. This could be seen as a positive sign for the company, as it managed to hold steady despite the overall market decline.

    However, investors should be cautious as this may also indicate a lack of significant growth potential in the near future. It is important for investors to closely monitor the company’s financial performance and market trends before making any investment decisions. The key takeaway is that while Hershey Co. may have shown some resilience, further analysis is needed before investing.

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