HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
189.06 USD
+4.31 (+2.33%)
HSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 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
HSY had positive earnings in the past year.
In the past year HSY had a positive cash flow from operations.
Each year in the past 5 years HSY has been profitable.
HSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HSY's Return On Assets of 10.01% is amongst the best of the industry. HSY outperforms 93.10% of its industry peers.
HSY has a better Return On Equity (29.79%) than 97.70% of its industry peers.
HSY has a better Return On Invested Capital (16.48%) than 95.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSY is below the industry average of 28.02%.
The 3 year average ROIC (23.99%) for HSY 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
The Profit Margin of HSY (11.84%) is better than 93.10% of its industry peers.
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 96.55% of the companies in the same industry.
In the last couple of years the Operating Margin of HSY has grown nicely.
With an excellent Gross Margin value of 37.74%, HSY belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
HSY's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HSY is creating value.
HSY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HSY has less shares outstanding
HSY has a better debt/assets ratio than last year.
2.2 Solvency
HSY has an Altman-Z score of 4.49. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
HSY has a Altman-Z score of 4.49. This is amongst the best in the industry. HSY outperforms 85.06% 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.
HSY's Debt to FCF ratio of 3.05 is amongst the best of the industry. HSY outperforms 83.91% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that HSY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.07, HSY is doing worse than 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.49 |
ROIC/WACC2.03
WACC8.13%
2.3 Liquidity
HSY has a Current Ratio of 1.36. This is a normal value and indicates that HSY is financially healthy and should not expect problems in meeting its short term obligations.
HSY's Current ratio of 1.36 is on the low side compared to the rest of the industry. HSY is outperformed by 60.92% 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.
HSY's Quick ratio of 0.83 is in line compared to the rest of the industry. HSY outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for HSY have decreased strongly by -16.21% in the last year.
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.
Looking at the last year, HSY shows a small growth in Revenue. The Revenue has grown by 4.71% in the last 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 1.22% on average over the next years.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y1.22%
Revenue Next Year3.66%
Revenue Next 2Y3.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.93, the valuation of HSY can be described as expensive.
HSY's Price/Earnings is on the same level as the industry average.
HSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.79, the valuation of HSY can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as HSY.
The average S&P500 Price/Forward Earnings ratio is at 23.70. HSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
HSY's Enterprise Value to EBITDA ratio is in line with the industry average.
HSY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSY is cheaper than 64.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
HSY has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HSY's earnings are expected to decrease with -4.44% in the coming years.
PEG (NY)N/A
PEG (5Y)2.57
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
HSY has a Yearly Dividend Yield of 3.01%.
Compared to an average industry Dividend Yield of 2.40, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
The dividend of HSY is nicely growing with an annual growth rate of 12.83%!
HSY has been paying a dividend for at least 10 years, so it has a reliable track record.
HSY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.83%
Div Incr Years15
Div Non Decr Years34
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%
NYSE:HSY (1/9/2026, 3:59:02 PM)
189.06
+4.31 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change1.16%
Market Cap38.34B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts65.71
Price Target195 (3.14%)
Short Float %6.18%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend5.33
Dividend Growth(5Y)12.83%
DP79.75%
Div Incr Years15
Div Non Decr Years34
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)1.99%
PT rev (3m)1.51%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-11.45%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 26.79 | ||
| P/S | 3.34 | ||
| P/FCF | 21.69 | ||
| P/OCF | 16.72 | ||
| P/B | 8.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.73 |
EPS(TTM)7.29
EY3.86%
EPS(NY)7.06
Fwd EY3.73%
FCF(TTM)8.72
FCFY4.61%
OCF(TTM)11.3
OCFY5.98%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.57
Graham Number60.76
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 | 4.49 |
F-Score4
WACC8.13%
ROIC/WACC2.03
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 5Y1.22%
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 5Y3.25%
EBIT growth 1Y-21.53%
EBIT growth 3Y12.42%
EBIT growth 5Y11.34%
EBIT Next Year-6.42%
EBIT Next 3Y5.6%
EBIT Next 5Y5.08%
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 FAQ
What is the fundamental rating for HSY stock?
ChartMill assigns a fundamental rating of 6 / 10 to HSY.
Can you provide the valuation status for HERSHEY CO/THE?
ChartMill assigns a valuation rating of 3 / 10 to HERSHEY CO/THE (HSY). This can be considered as Overvalued.
What is the profitability of HSY stock?
HERSHEY CO/THE (HSY) 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) is 25.93 and the Price/Book (PB) ratio is 8.4.
Can you provide the expected EPS growth for HSY stock?
The Earnings per Share (EPS) of HERSHEY CO/THE (HSY) is expected to decline by -35.44% in the next year.