HERSHEY CO/THE (1HSY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HSY - US4278661081 - Common Stock
164.92 EUR
+164.92 (+Infinity%)
Taking everything into account, 1HSY scores 6 out of 10 in our fundamental rating. 1HSY was compared to 64 industry peers in the Food Products industry. While 1HSY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1HSY has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year 1HSY was profitable.
- 1HSY had a positive operating cash flow in the past year.
- In the past 5 years 1HSY has always been profitable.
- Each year in the past 5 years 1HSY had a positive operating cash flow.
1.2 Ratios
- 1HSY's Return On Assets of 10.01% is amongst the best of the industry. 1HSY outperforms 90.63% of its industry peers.
- 1HSY's Return On Equity of 29.79% is amongst the best of the industry. 1HSY outperforms 93.75% of its industry peers.
- With an excellent Return On Invested Capital value of 16.48%, 1HSY belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
- 1HSY had an Average Return On Invested Capital over the past 3 years of 23.99%. This is significantly above the industry average of 7.95%.
- The 3 year average ROIC (23.99%) for 1HSY is well above the current ROIC(16.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROIC | 16.48% |
ROA(3y)15.94%
ROA(5y)15.2%
ROE(3y)47.46%
ROE(5y)50.64%
ROIC(3y)23.99%
ROIC(5y)22.85%
1.3 Margins
- Looking at the Profit Margin, with a value of 11.84%, 1HSY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- 1HSY's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 17.27%, 1HSY belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- 1HSY's Operating Margin has improved in the last couple of years.
- 1HSY has a Gross Margin of 37.74%. This is comparable to the rest of the industry: 1HSY outperforms 56.25% of its industry peers.
- In the last couple of years the Gross Margin of 1HSY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% |
OM growth 3Y4.4%
OM growth 5Y4.06%
PM growth 3Y6.38%
PM growth 5Y6.61%
GM growth 3Y1.55%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1HSY is creating value.
- Compared to 1 year ago, 1HSY has less shares outstanding
- 1HSY has less shares outstanding than it did 5 years ago.
- 1HSY has a better debt/assets ratio than last year.
2.2 Solvency
- 1HSY has an Altman-Z score of 4.58. This indicates that 1HSY is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.58, 1HSY belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
- 1HSY has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as 1HSY would need 3.05 years to pay back of all of its debts.
- The Debt to FCF ratio of 1HSY (3.05) is better than 84.38% of its industry peers.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that 1HSY has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.07, 1HSY is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.58 |
ROIC/WACC2.02
WACC8.14%
2.3 Liquidity
- 1HSY has a Current Ratio of 1.36. This is a normal value and indicates that 1HSY is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.36, 1HSY is doing good in the industry, outperforming 60.94% of the companies in the same industry.
- 1HSY has a Quick Ratio of 1.36. This is a bad value and indicates that 1HSY is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1HSY (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The earnings per share for 1HSY have decreased strongly by -16.21% in the last year.
- The Earnings Per Share has been growing by 10.11% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 4.71% in the past year.
- Measured over the past years, 1HSY shows a small growth in Revenue. The Revenue has been growing by 7.00% on average per year.
EPS 1Y (TTM)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
3.2 Future
- 1HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.75% yearly.
- 1HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue Next Year3.7%
Revenue Next 2Y3.68%
Revenue Next 3Y3.4%
Revenue Next 5Y3.41%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.26, the valuation of 1HSY can be described as expensive.
- Based on the Price/Earnings ratio, 1HSY is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, 1HSY is valued at the same level.
- With a Price/Forward Earnings ratio of 27.14, 1HSY can be considered very expensive at the moment.
- 1HSY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1HSY is more expensive than 67.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, 1HSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 27.14 |
4.2 Price Multiples
- 1HSY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1HSY is more expensive than 71.88% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1HSY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.98 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
- 1HSY has an outstanding profitability rating, which may justify a higher PE ratio.
- 1HSY's earnings are expected to decrease with -4.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.6
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
- 1HSY has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
- 1HSY's Dividend Yield is comparable with the industry average which is at 2.42.
- Compared to an average S&P500 Dividend Yield of 1.85, 1HSY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
- The dividend of 1HSY is nicely growing with an annual growth rate of 12.83%!
Dividend Growth(5Y)12.83%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1HSY pays out 79.75% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1HSY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP79.75%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
BIT:1HSY (1/12/2026, 7:00:00 PM)
164.92
+164.92 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners89.13%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap33.44B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target165.79 (0.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend4.59
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.61%
Min EPS beat(2)20.39%
Max EPS beat(2)20.83%
EPS beat(4)4
Avg EPS beat(4)14.92%
Min EPS beat(4)6.26%
Max EPS beat(4)20.83%
EPS beat(8)6
Avg EPS beat(8)6.32%
EPS beat(12)10
Avg EPS beat(12)6.89%
EPS beat(16)14
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)1.19%
Max Revenue beat(2)2.62%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)2.62%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)7
Avg Revenue beat(12)-0.53%
Revenue beat(16)11
Avg Revenue beat(16)1.12%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 27.14 | ||
| P/S | 3.38 | ||
| P/FCF | 21.98 | ||
| P/OCF | 16.95 | ||
| P/B | 8.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.29 |
EPS(TTM)6.28
EY3.81%
EPS(NY)6.08
Fwd EY3.68%
FCF(TTM)7.5
FCFY4.55%
OCF(TTM)9.73
OCFY5.9%
SpS48.77
BVpS19.38
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)2.6
Graham Number52.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 29.79% | ||
| ROCE | 19.16% | ||
| ROIC | 16.48% | ||
| ROICexc | 18.51% | ||
| ROICexgc | 39.09% | ||
| OM | 17.27% | ||
| PM (TTM) | 11.84% | ||
| GM | 37.74% | ||
| FCFM | 15.39% |
ROA(3y)15.94%
ROA(5y)15.2%
ROE(3y)47.46%
ROE(5y)50.64%
ROIC(3y)23.99%
ROIC(5y)22.85%
ROICexc(3y)25.42%
ROICexc(5y)24.68%
ROICexgc(3y)57.82%
ROICexgc(5y)56.6%
ROCE(3y)30.24%
ROCE(5y)28.38%
ROICexgc growth 3Y3.23%
ROICexgc growth 5Y-4.21%
ROICexc growth 3Y8.1%
ROICexc growth 5Y0.23%
OM growth 3Y4.4%
OM growth 5Y4.06%
PM growth 3Y6.38%
PM growth 5Y6.61%
GM growth 3Y1.55%
GM growth 5Y0.85%
F-Score4
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 105.99% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 9.57 | ||
| Cash Conversion | 92.48% | ||
| Profit Quality | 130% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.58 |
F-Score4
WACC8.14%
ROIC/WACC2.02
Cap/Depr(3y)151.29%
Cap/Depr(5y)152.21%
Cap/Sales(3y)5.77%
Cap/Sales(5y)5.65%
Profit Quality(3y)93.33%
Profit Quality(5y)97.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.21%
EPS 3Y9.28%
EPS 5Y10.11%
EPS Q2Q%-44.44%
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y7.68%
Revenue growth 5Y7%
Sales Q2Q%6.49%
Revenue Next Year3.7%
Revenue Next 2Y3.68%
Revenue Next 3Y3.4%
Revenue Next 5Y3.41%
EBIT growth 1Y-21.53%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-6.42%
EBIT Next 3Y5.6%
EBIT Next 5Y6.23%
FCF growth 1Y8.78%
FCF growth 3Y6.4%
FCF growth 5Y5.9%
OCF growth 1Y-1.75%
OCF growth 3Y6.52%
OCF growth 5Y7.49%
HERSHEY CO/THE / 1HSY.MI FAQ
What is the fundamental rating for 1HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1HSY.MI.
Can you provide the valuation status for HERSHEY CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to HERSHEY CO/THE (1HSY.MI). This can be considered as Overvalued.
Can you provide the profitability details for HERSHEY CO/THE?
HERSHEY CO/THE (1HSY.MI) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for 1HSY stock?
The Earnings per Share (EPS) of HERSHEY CO/THE (1HSY.MI) is expected to decline by -35.44% in the next year.
How sustainable is the dividend of HERSHEY CO/THE (1HSY.MI) stock?
The dividend rating of HERSHEY CO/THE (1HSY.MI) is 4 / 10 and the dividend payout ratio is 79.75%.