The Hershey Company (NYSE: HSY), valuation on May 9, 2022
The Hershey Company (NYSE: HSY), valuation on May 9, 2022
Summary
Stock: The Hershey Company (NYSE: HSY) common equity
Market cap: $46.5bn
Rating: Hold
Price: $226.00
Target: $189.48
Setting the stage
The Hershey Company (NYSE: HSY, $46.5bn market cap), founded in 1894, is a global confectionery business based in the United States. The company makes money by manufacturing and selling branded chocolates, confectionery, gum, pantry items, and other snacks. Despite being the largest chocolate producer in North America and getting 87% of its $9.3bn of revenue there, the firm distributes its products to 80 other countries.
America’s confectionery and snack markets have been stagnant for the last decade. Despite total industry sales increasing at 2.5% per year in line with the rise in the consumer price index (CPI), the volume consumed per person has fallen. Americans, on average, now devour just 87.5kg of confectionery and snacks per year compared to 91kg in 2014.
Changing consumer preferences and shrinkflation, making products small…