HERSHEY CO/THE (HSY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HSY - US4278661081 - Common Stock
168.52 EUR
+3.58 (+2.17%)
HSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Food Products industry. HSY scores excellent on profitability, but there are some minor concerns on its financial health. HSY has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year HSY was profitable.
- In the past year HSY had a positive cash flow from operations.
- HSY had positive earnings in each of the past 5 years.
- Each year in the past 5 years HSY had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
- HSY's Return On Equity of 29.79% is amongst the best of the industry. HSY outperforms 95.24% of its industry peers.
- HSY has a Return On Invested Capital of 16.48%. This is amongst the best in the industry. HSY outperforms 98.41% of its industry peers.
- HSY had an Average Return On Invested Capital over the past 3 years of 23.99%. This is significantly above the industry average of 6.78%.
- The last Return On Invested Capital (16.48%) for HSY is well below the 3 year average (23.99%), which needs to be investigated, but indicates that HSY had better years and this may not be a problem.
| 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
- With an excellent Profit Margin value of 11.84%, HSY belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
- HSY's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 17.27%, HSY belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- HSY's Operating Margin has improved in the last couple of years.
- HSY has a Gross Margin of 37.74%. This is comparable to the rest of the industry: HSY outperforms 57.14% of its industry peers.
- In the last couple of years the Gross Margin of HSY 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 HSY is creating value.
- The number of shares outstanding for HSY has been reduced compared to 1 year ago.
- Compared to 5 years ago, HSY has less shares outstanding
- The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.64 indicates that HSY is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HSY (4.64) is better than 93.65% of its industry peers.
- The Debt to FCF ratio of HSY is 3.05, which is a good value as it means it would take HSY, 3.05 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HSY (3.05) is better than 87.30% of its industry peers.
- HSY has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- HSY's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. HSY is outperformed by 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.64 |
ROIC/WACC2.04
WACC8.08%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HSY should not have too much problems paying its short term obligations.
- The Current ratio of HSY (1.36) is better than 60.32% of its industry peers.
- HSY has a Quick Ratio of 1.36. This is a bad value and indicates that HSY is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.83, HSY is in line with its industry, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.21%.
- Measured over the past years, HSY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.11% on average per year.
- The Revenue has been growing slightly by 4.71% in the past year.
- The Revenue has been growing slightly by 7.00% on average over the past years.
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
- The Earnings Per Share is expected to grow by 2.75% on average over the next years.
- HSY 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 Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
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 26.88, the valuation of HSY can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of HSY indicates a slightly more expensive valuation: HSY is more expensive than 63.49% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HSY to the average of the S&P500 Index (27.54), we can say HSY is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 27.75, the valuation of HSY can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HSY indicates a slightly more expensive valuation: HSY is more expensive than 68.25% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HSY to the average of the S&P500 Index (24.31), we can say HSY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 27.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSY is valued a bit more expensive than 71.43% of the companies in the same industry.
- HSY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.47 | ||
| EV/EBITDA | 17.65 |
4.3 Compensation for Growth
- HSY has an outstanding profitability rating, which may justify a higher PE ratio.
- HSY'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)2.66
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
- HSY has a Yearly Dividend Yield of 2.97%.
- Compared to an average industry Dividend Yield of 2.42, HSY pays a bit more dividend than its industry peers.
- HSY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
- On average, the dividend of HSY grows each year by 12.83%, which is quite nice.
Dividend Growth(5Y)12.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 79.75% of the earnings are spent on dividend by HSY. This is not a sustainable payout ratio.
- The dividend of HSY 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%
FRA:HSY (1/13/2026, 7:00:00 PM)
168.52
+3.58 (+2.17%)
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 Cap34.17B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target166.98 (-0.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend4.58
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr Years1
Div Non Decr Years1
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)2.82%
PT rev (3m)13.7%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 27.75 | ||
| P/S | 3.46 | ||
| P/FCF | 22.47 | ||
| P/OCF | 17.33 | ||
| P/B | 8.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.65 |
EPS(TTM)6.27
EY3.72%
EPS(NY)6.07
Fwd EY3.6%
FCF(TTM)7.5
FCFY4.45%
OCF(TTM)9.73
OCFY5.77%
SpS48.74
BVpS19.36
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)2.66
Graham Number52.27
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 | 4.64 |
F-Score4
WACC8.08%
ROIC/WACC2.04
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 Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
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 / HSY.DE FAQ
What is the fundamental rating for HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSY.DE.
Can you provide the valuation status for HERSHEY CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to HERSHEY CO/THE (HSY.DE). This can be considered as Overvalued.
What is the profitability of HSY stock?
HERSHEY CO/THE (HSY.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for HSY stock?
The Price/Earnings (PE) ratio for HERSHEY CO/THE (HSY.DE) is 26.88 and the Price/Book (PB) ratio is 8.7.
Can you provide the expected EPS growth for HSY stock?
The Earnings per Share (EPS) of HERSHEY CO/THE (HSY.DE) is expected to decline by -35.44% in the next year.