08-27-2015, 08:46 AM
Currently doing research on a consumer staples Top 10 list, and I am showing analyst estimates of $4.14 in earnings in 2015, which would be a PE of 21.5. According to FAST Graphs, I peg "fair value" for HSY at a 22 PE, meaning shares are trading at a slight discount.
Analysts are projecting 5YR EPS growth of 8.7% and the company is targeting long term EPS growth of 9-11%. The company also has a targeted payout ratio of 50%, which is slightly below the current 51.7% payout ratio based on 2015 estimates and the current dividend rate.
So over the next 5 years I'd expect dividend growth in 8-9% range, which isn't bad with a 2.4% yield.
In all, I wouldn't consider it a screaming buy here, but it seems to be at a reasonable place to add to your position.
Analysts are projecting 5YR EPS growth of 8.7% and the company is targeting long term EPS growth of 9-11%. The company also has a targeted payout ratio of 50%, which is slightly below the current 51.7% payout ratio based on 2015 estimates and the current dividend rate.
So over the next 5 years I'd expect dividend growth in 8-9% range, which isn't bad with a 2.4% yield.
In all, I wouldn't consider it a screaming buy here, but it seems to be at a reasonable place to add to your position.