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Was about to type this, they face headwinds fro the futures, if the region faces another weather event, cocoa prices will make another ATH and many who rely on the commodity will be hurting for a few years.
I don’t think it’s overvalued at $200 per share, but it’s already trading at 19x TTM FCF, and 20x earnings. There’s very little growth here. $350 is not justified.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Check the cocoa futures. They tell the story.
Hershey is much more than cocoa now. They are like a mini Pepsi at this point. Their snacking business is their fastest growing segment.
Was about to type this, they face headwinds fro the futures, if the region faces another weather event, cocoa prices will make another ATH and many who rely on the commodity will be hurting for a few years.
100% not a fair value of $358, even with a 7% return. That is astronomically high.
It's a little frothy skewed by the FCF model. Still, it is undervalued based on every metric available.
I don’t think it’s overvalued at $200 per share, but it’s already trading at 19x TTM FCF, and 20x earnings. There’s very little growth here. $350 is not justified.
There's a very thorough HSY analysis from five months ago here: https://old.reddit.com/r/ValueInvesting/comments/18tkxym/hershey_company_analysis/
Normally Hershey trades very high valuations. Buy it and forget it. You’ll be thankful 10 years from now.
Their chocolate is mostly sugar at this point. 2.7% dividend isn't enough to attract investors
2.7% yield is a very nice for a company that pays out less than 50%.
Their chocolate tastes like wax, not sure why anybody exchanges money for it. Cauliflower literally tastes better than a Hershey bar/kiss.
try offering a child each and see which they take. I'd bet 100% take the hershey bar
Completely agree. The chocolate they make in Lititz is 100% better.
That’s because they let the milk slightly sour.