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The Hershey Co Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Hershey Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for The Hershey Co's Piotroski F-Score or its related term are showing as below:

NYSE:HSY' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 8

1
9

During the past 13 years, the highest Piotroski F-Score of The Hershey Co was 9. The lowest was 1. And the median was 6.


The Hershey Co Piotroski F-Score Historical Data

The historical data trend for The Hershey Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Hershey Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 6.00 5.00 7.00

The Hershey Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 7.00 7.00 8.00

Competitive Comparison

For the Confectioners subindustry, The Hershey Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Hershey Co Piotroski F-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Hershey Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 447.283 + 291.387 + 395.799 + 301.23 = $1,436 Mil.
Cash Flow from Operations was 481.219 + 604.391 + 609.64 + 408.012 = $2,103 Mil.
Revenue was 2219.829 + 2185.244 + 2295.948 + 1989.422 = $8,690 Mil.
Gross Profit was 1080.024 + 962.071 + 1048.951 + 925.445 = $4,016 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(8911.071 + 9255.034 + 9131.845 + 9038.128 + 8883.863) / 5 = $9043.9882 Mil.
Total Assets at the begining of this year (Jun20) was $8,911 Mil.
Long-Term Debt & Capital Lease Obligation was $4,268 Mil.
Total Current Assets was $2,219 Mil.
Total Current Liabilities was $1,587 Mil.
Net Income was 325.307 + 207.187 + 271.137 + 268.901 = $1,073 Mil.

Revenue was 2134.422 + 2068.125 + 2037.317 + 1707.329 = $7,947 Mil.
Gross Profit was 943.318 + 911.912 + 866.622 + 792.552 = $3,514 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(7793.56 + 8464.26 + 8140.395 + 8855.443 + 8911.071) / 5 = $8432.9458 Mil.
Total Assets at the begining of last year (Jun19) was $7,794 Mil.
Long-Term Debt & Capital Lease Obligation was $4,276 Mil.
Total Current Assets was $2,903 Mil.
Total Current Liabilities was $2,215 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Hershey Co's current Net Income (TTM) was 1,436. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Hershey Co's current Cash Flow from Operations (TTM) was 2,103. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=1435.699/8911.071
=0.16111408

ROA (Last Year)=Net Income/Total Assets (Jun19)
=1072.532/7793.56
=0.13761773

The Hershey Co's return on assets of this year was 0.16111408. The Hershey Co's return on assets of last year was 0.13761773. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The Hershey Co's current Net Income (TTM) was 1,436. The Hershey Co's current Cash Flow from Operations (TTM) was 2,103. ==> 2,103 > 1,436 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=4267.552/9043.9882
=0.47186616

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=4275.837/8432.9458
=0.50703954

The Hershey Co's gearing of this year was 0.47186616. The Hershey Co's gearing of last year was 0.50703954. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun21)=Total Current Assets/Total Current Liabilities
=2219.181/1587.002
=1.39834795

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=2902.944/2214.818
=1.31069189

The Hershey Co's current ratio of this year was 1.39834795. The Hershey Co's current ratio of last year was 1.31069189. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The Hershey Co's number of shares in issue this year was 207.671. The Hershey Co's number of shares in issue last year was 209.07. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4016.491/8690.443
=0.46217333

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3514.404/7947.193
=0.44221954

The Hershey Co's gross margin of this year was 0.46217333. The Hershey Co's gross margin of last year was 0.44221954. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=8690.443/8911.071
=0.97524114

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=7947.193/7793.56
=1.01971281

The Hershey Co's asset turnover of this year was 0.97524114. The Hershey Co's asset turnover of last year was 1.01971281. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+1+0
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Hershey Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The Hershey Co  (NYSE:HSY) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The Hershey Co Piotroski F-Score Related Terms

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The Hershey Co Business Description

The Hershey Co logo
Industry
Traded in Other Exchanges
Address
19 East Chocolate Avenue, Hershey, PA, USA, 17033
Hershey is a leading confectionery manufacturer in the U.S. (nearly a $25 billion market), controlling around 46% of the domestic chocolate space (per IRI). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 90 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 85 countries, with just 10% of total sales coming from markets outside the U.S., including Brazil, China, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix and Pirate Brands (including the Pirate's Booty, Smart Puffs, and Original Tings brands) over the past few years.
Executives
Atkins Damien officer: SVP, GC and Secretary THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Arway Pamela M director 601 HAWAII ST. EL SEGUNDO CA 90245
Katzman James C director 6000 N. HOMESTEAD LANE PARADISE VALLEY AZ 85253
Palmer Anthony J. director P.O. BOX 619100 DALLAS TX 75261-9100
Davis Charles A director 1 CAPE MAY ST 1 CAPE MAY ST HARRISON NJ 07029
Dutkowsky Robert M director JD EDWARDS & CO ONE TECHNOLOGY WAY DENVER CO 80237
Haben Mary Kay director C/O EQUITY RESIDENTIAL TWO NORTH RIVERSIDE PLAZA, SUITE 400 CHICAGO IL 60606
Brown James W director FRANKLIN SQUARE CAPITAL PARTNERS 201 ROUSE BLVD. PHILADELPHIA PA 19112
Schoppert Wendy Lee director 6105 TRENTON LANE NORTH MINNEAPOLIS MN 55442
Shedlarz David L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHEDLARZ DAVID L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Malcolm Robert director C/O LOGITECH INTERNATIONAL S.A. RUE DU SABLON 2-4 MORGES V8 1110
Perez Juan R. director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Koken Mary Diane director THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Crawford Victor L. director C/O THE PEPSI BOTTLING GROUP, INC. ONE PEPSI WAY SOMERS NY 10589
Buck Michele director, officer: Chairman, President and CEO THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033

The Hershey Co Headlines

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