Price to Sales (P/S)
since 2005
Calculation
Hershey Co., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 17, 2023 | 4.71 | = | 240.69 | ÷ | 51.07 | 51.07 | = | 10,419,294 | ÷ | 204,035,956 | |
| Feb 18, 2022 | 4.63 | = | 202.59 | ÷ | 43.71 | 43.71 | = | 8,971,337 | ÷ | 205,241,853 | |
| Feb 17, 2021 | 3.85 | = | 151.29 | ÷ | 39.34 | 39.34 | = | 8,149,719 | ÷ | 207,165,543 | |
| Feb 20, 2020 | 4.21 | = | 160.11 | ÷ | 38.08 | 38.08 | = | 7,986,252 | ÷ | 209,749,611 | |
| Feb 22, 2019 | 2.95 | = | 110.22 | ÷ | 37.36 | 37.36 | = | 7,791,069 | ÷ | 208,519,794 | |
| Feb 27, 2018 | 2.75 | = | 98.19 | ÷ | 35.71 | 35.71 | = | 7,515,426 | ÷ | 210,483,774 | |
| Feb 21, 2017 | 3.10 | = | 108.48 | ÷ | 35.03 | 35.03 | = | 7,440,181 | ÷ | 212,414,672 | |
| Feb 26, 2016 | 2.66 | = | 90.62 | ÷ | 34.12 | 34.12 | = | 7,386,626 | ÷ | 216,519,701 | |
| Feb 20, 2015 | 3.19 | = | 107.24 | ÷ | 33.61 | 33.61 | = | 7,421,768 | ÷ | 220,828,040 | |
| Feb 21, 2014 | 3.37 | = | 107.70 | ÷ | 31.93 | 31.93 | = | 7,146,079 | ÷ | 223,805,223 | |
| Feb 22, 2013 | 2.74 | = | 81.23 | ÷ | 29.65 | 29.65 | = | 6,644,252 | ÷ | 224,087,596 | |
| Feb 17, 2012 | 2.26 | = | 60.86 | ÷ | 26.96 | 26.96 | = | 6,080,788 | ÷ | 225,520,177 | |
| Feb 18, 2011 | 2.02 | = | 50.33 | ÷ | 24.95 | 24.95 | = | 5,671,009 | ÷ | 227,301,799 | |
| Feb 19, 2010 | 1.72 | = | 39.97 | ÷ | 23.25 | 23.25 | = | 5,298,668 | ÷ | 227,922,429 | |
| Feb 20, 2009 | 1.53 | = | 34.64 | ÷ | 22.61 | 22.61 | = | 5,132,768 | ÷ | 226,993,240 | |
| Feb 19, 2008 | 1.70 | = | 37.05 | ÷ | 21.76 | 21.76 | = | 4,946,716 | ÷ | 227,314,176 | |
| Feb 23, 2007 | 2.48 | = | 53.09 | ÷ | 21.43 | 21.43 | = | 4,944,230 | ÷ | 230,758,373 | |
| Feb 28, 2006 | 2.53 | = | 51.15 | ÷ | 20.24 | 20.24 | = | 4,835,974 | ÷ | 238,949,667 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Hershey Co. Annual Report.
The financial data from 2006 to 2023 indicates a consistent upward trajectory in revenue generation per share, coupled with a significant long-term expansion in the Price to Sales (P/S) valuation multiple. While the growth in sales per share remained steady and linear, the share price experienced higher volatility, leading to fluctuating valuation multiples over the seventeen-year period.
- Sales per Share Performance
- A monotonic increase in sales per share is observed throughout the entire period. Starting at 20.24 US$ in 2006, this metric grew every year without exception, reaching 51.07 US$ by February 17, 2023. This trend demonstrates a reliable and consistent expansion of the company's top-line revenue relative to its shares outstanding.
- P/S Ratio Cyclicality
- The P/S ratio moved through three distinct phases. First, a contraction phase occurred between 2008 and 2009, where the ratio fell from 1.70 to a period low of 1.53. Second, a recovery and stabilization phase was observed between 2010 and 2019, with the ratio generally fluctuating between 2.02 and 3.37. Third, a sharp expansion phase began in 2020, with the ratio escalating from 4.21 to a peak of 4.71 by 2023.
- Valuation Expansion Analysis
- The divergence between the linear growth of sales and the more aggressive growth of the share price is highlighted by the P/S ratio. The increase from 2.53 in 2006 to 4.71 in 2023 indicates that the market is paying a significantly higher premium for each dollar of sales than it did in the previous decade. This suggests a substantial increase in the market's valuation of the company's revenue streams over time.
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Comparison to Competitors
Hershey Co., P/S, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 17, 2023 | 4.71 | 6.02 | 2.85 | 2.75 | 5.00 |
| Feb 18, 2022 | 4.63 | 6.99 | 3.24 | 2.93 | 5.33 |
| Feb 17, 2021 | 3.85 | 6.55 | 2.99 | 2.65 | 4.65 |
| Feb 20, 2020 | 4.21 | 6.75 | 3.25 | 3.03 | 4.57 |
| Feb 22, 2019 | 2.95 | 6.15 | 2.61 | 2.52 | 4.03 |
| Feb 27, 2018 | 2.75 | 5.31 | 2.42 | 2.51 | 5.57 |
| Feb 21, 2017 | 3.10 | 4.28 | 2.67 | 2.43 | 5.96 |
| Feb 26, 2016 | 2.66 | 4.32 | 2.11 | 2.22 | 5.28 |
| Feb 20, 2015 | 3.19 | 3.99 | 1.78 | 2.23 | 4.32 |
| Feb 21, 2014 | 3.37 | 3.58 | 1.63 | 1.79 | 4.01 |
| Feb 22, 2013 | 2.74 | 3.57 | 1.35 | 1.78 | 4.91 |
| Feb 17, 2012 | 2.26 | 3.36 | 1.23 | 1.50 | 4.60 |
| Feb 18, 2011 | 2.02 | 4.18 | 1.13 | 1.74 | 4.11 |
| Feb 19, 2010 | 1.72 | 3.92 | 1.06 | 2.27 | 3.68 |
| Feb 20, 2009 | 1.53 | 2.98 | 0.79 | 1.88 | 2.67 |
| Feb 19, 2008 | 1.70 | 4.79 | 1.30 | 2.91 | — |
| Feb 23, 2007 | 2.48 | 4.57 | 1.55 | 3.01 | — |
| Feb 28, 2006 | 2.53 | 4.30 | 1.50 | 3.03 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Hershey Co., P/S, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 17, 2023 | 4.71 | 3.87 |
| Feb 18, 2022 | 4.63 | 4.28 |
| Feb 17, 2021 | 3.85 | 3.88 |
| Feb 20, 2020 | 4.21 | 4.22 |
| Feb 22, 2019 | 2.95 | 3.59 |
| Feb 27, 2018 | 2.75 | 3.71 |
| Feb 21, 2017 | 3.10 | 3.56 |
| Feb 26, 2016 | 2.66 | 3.27 |
| Feb 20, 2015 | 3.19 | 2.95 |
| Feb 21, 2014 | 3.37 | 2.61 |
| Feb 22, 2013 | 2.74 | 2.72 |
| Feb 17, 2012 | 2.26 | 2.35 |
| Feb 18, 2011 | 2.02 | 2.45 |
| Feb 19, 2010 | 1.72 | 2.54 |
| Feb 20, 2009 | 1.53 | 1.95 |
| Feb 19, 2008 | 1.70 | 2.86 |
| Feb 23, 2007 | 2.48 | 2.88 |
| Feb 28, 2006 | 2.53 | 2.77 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Hershey Co., P/S, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Feb 17, 2023 | 4.71 | 1.54 |
| Feb 18, 2022 | 4.63 | 1.61 |
| Feb 17, 2021 | 3.85 | 1.49 |
| Feb 20, 2020 | 4.21 | 1.47 |
| Feb 22, 2019 | 2.95 | 1.24 |
| Feb 27, 2018 | 2.75 | 1.25 |
| Feb 21, 2017 | 3.10 | 1.26 |
| Feb 26, 2016 | 2.66 | 1.23 |
| Feb 20, 2015 | 3.19 | 1.18 |
| Feb 21, 2014 | 3.37 | 1.14 |
| Feb 22, 2013 | 2.74 | 1.10 |
| Feb 17, 2012 | 2.26 | 1.03 |
| Feb 18, 2011 | 2.02 | 1.08 |
| Feb 19, 2010 | 1.72 | 1.01 |
| Feb 20, 2009 | 1.53 | 1.04 |
| Feb 19, 2008 | 1.70 | 1.20 |
| Feb 23, 2007 | 2.48 | 1.25 |
| Feb 28, 2006 | 2.53 | 1.26 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).