Last Updated: 08 Nov 2024
Executive Summary
Hershey Co (HSY) is a leading global chocolate manufacturer with a strong brand portfolio and a diverse product line. The company has a solid financial position, with healthy profitability margins and a strong cash flow. However, the company faces challenges from rising input costs and increasing competition in the confectionery market. Overall, Hershey Co is a well-established company with a strong track record of success. The company's shares are currently trading at $172.85, below their 52-week high of $209.04. Analysts have a mixed outlook on the company, with some recommending a buy and others recommending a hold.
Company Overview
Hershey Co is one of the largest chocolate manufacturers in the world. The company was founded in 1894 by Milton S. Hershey and is headquartered in Hershey, Pennsylvania. Hershey Co's products are sold in over 80 countries around the world. The company's core brands include Hershey's, Reese's, Kit Kat, and Twizzlers. Hershey Co also manufactures and markets a variety of other products, including cookies, cakes, and beverages.
Fundamental Analysis
Hershey Co has a strong financial position. The company's revenue has grown steadily over the past five years, from $7.4 billion in 2017 to $11.0 billion in 2022. The company's net income has also grown steadily over the past five years, from $1.4 billion in 2017 to $2.0 billion in 2022. Hershey Co's profitability margins are healthy, with a gross profit margin of 40.8% and a net profit margin of 18.2%. The company's cash flow is also strong, with operating cash flow of $1.7 billion in 2022.
Hershey Co faces challenges from rising input costs and increasing competition in the confectionery market. The company's input costs have risen in recent years due to the rising cost of cocoa and other commodities. The company also faces competition from other chocolate manufacturers, such as Mars, Mondelez International, and Nestle.
Technical Analysis
Hershey Co's stock price has been in a downtrend since early 2023. The stock price is currently trading below its 50-day moving average and its 200-day moving average. The stock price is also below its 52-week low of $171.67. The technical indicators suggest that the stock price is likely to continue to decline in the short term.
Short Term Outlook
The short-term outlook for Hershey Co is negative. The stock price is in a downtrend and the technical indicators suggest that the stock price is likely to continue to decline. Investors should be cautious about investing in Hershey Co in the short term.
Long Term Outlook
The long-term outlook for Hershey Co is positive. The company has a strong brand portfolio, a diverse product line, and a solid financial position. The company is also well-positioned to benefit from the growing global demand for chocolate. Investors should consider investing in Hershey Co for the long term.
Analyst Recommendations
Analysts have a mixed outlook on Hershey Co. Some analysts recommend a buy, while others recommend a hold. The average analyst target price for Hershey Co is $194.71.
