HERSHEY CO/THE (HSY) Fundamental Analysis & Valuation

NYSE:HSY • US4278661081

Current stock price

215.975 USD
+5.84 (+2.78%)
Last:

This HSY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HSY Profitability Analysis

1.1 Basic Checks

  • In the past year HSY was profitable.
  • In the past year HSY had a positive cash flow from operations.
  • In the past 5 years HSY has always been profitable.
  • HSY had a positive operating cash flow in each of the past 5 years.
HSY Yearly Net Income VS EBIT VS OCF VS FCFHSY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With an excellent Return On Assets value of 6.43%, HSY belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
  • HSY's Return On Equity of 19.05% is amongst the best of the industry. HSY outperforms 91.95% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 11.14%, HSY belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
  • HSY had an Average Return On Invested Capital over the past 3 years of 18.61%. This is significantly above the industry average of 7.14%.
  • The 3 year average ROIC (18.61%) for HSY is well above the current ROIC(11.14%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 6.43%
ROE 19.05%
ROIC 11.14%
ROA(3y)13.08%
ROA(5y)13.69%
ROE(3y)37.19%
ROE(5y)43%
ROIC(3y)18.61%
ROIC(5y)19.34%
HSY Yearly ROA, ROE, ROICHSY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • HSY has a Profit Margin of 7.55%. This is amongst the best in the industry. HSY outperforms 85.06% of its industry peers.
  • HSY's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 12.84%, HSY belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HSY has declined.
  • HSY has a better Gross Margin (33.55%) than 78.16% of its industry peers.
  • HSY's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 12.84%
PM (TTM) 7.55%
GM 33.55%
OM growth 3Y-16.11%
OM growth 5Y-10.52%
PM growth 3Y-21.78%
PM growth 5Y-13.6%
GM growth 3Y-8.07%
GM growth 5Y-5.89%
HSY Yearly Profit, Operating, Gross MarginsHSY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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5

2. HSY Health Analysis

2.1 Basic Checks

  • HSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, HSY has more shares outstanding
  • The number of shares outstanding for HSY has been reduced compared to 5 years ago.
  • The debt/assets ratio for HSY has been reduced compared to a year ago.
HSY Yearly Shares OutstandingHSY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
HSY Yearly Total Debt VS Total AssetsHSY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • HSY has an Altman-Z score of 4.63. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 4.63, HSY belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
  • The Debt to FCF ratio of HSY is 3.09, which is a good value as it means it would take HSY, 3.09 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of HSY (3.09) is better than 81.61% of its industry peers.
  • A Debt/Equity ratio of 1.06 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 1.06, HSY is doing worse than 71.26% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 3.09
Altman-Z 4.63
ROIC/WACC1.33
WACC8.37%
HSY Yearly LT Debt VS Equity VS FCFHSY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • HSY has a Current Ratio of 1.19. 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 1.19 is on the low side compared to the rest of the industry. HSY is outperformed by 64.37% of its industry peers.
  • HSY has a Quick Ratio of 1.19. 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 0.72 is on the low side compared to the rest of the industry. HSY is outperformed by 64.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.72
HSY Yearly Current Assets VS Current LiabilitesHSY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. HSY Growth Analysis

3.1 Past

  • The earnings per share for HSY have decreased strongly by -32.66% in the last year.
  • HSY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.06% yearly.
  • Looking at the last year, HSY shows a small growth in Revenue. The Revenue has grown by 4.38% in the last year.
  • HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.49% yearly.
EPS 1Y (TTM)-32.66%
EPS 3Y-9.52%
EPS 5Y0.06%
EPS Q2Q%-36.43%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%7.05%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.41% on average over the next years. This is quite good.
  • HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y34.93%
EPS Next 2Y25.47%
EPS Next 3Y20.45%
EPS Next 5Y13.41%
Revenue Next Year5.68%
Revenue Next 2Y4.02%
Revenue Next 3Y3.65%
Revenue Next 5Y3.23%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
HSY Yearly Revenue VS EstimatesHSY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
HSY Yearly EPS VS EstimatesHSY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. HSY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.23, the valuation of HSY can be described as expensive.
  • HSY's Price/Earnings ratio is in line with the industry average.
  • HSY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.23.
  • A Price/Forward Earnings ratio of 25.37 indicates a quite expensive valuation of HSY.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HSY is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of HSY to the average of the S&P500 Index (22.42), we can say HSY is valued inline with the index average.
Industry RankSector Rank
PE 34.23
Fwd PE 25.37
HSY Price Earnings VS Forward Price EarningsHSY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • HSY's Enterprise Value to EBITDA is on the same level as the industry average.
  • HSY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 25.03
EV/EBITDA 23.37
HSY Per share dataHSY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • HSY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of HSY may justify a higher PE ratio.
  • A more expensive valuation may be justified as HSY's earnings are expected to grow with 20.45% in the coming years.
PEG (NY)0.98
PEG (5Y)538.91
EPS Next 2Y25.47%
EPS Next 3Y20.45%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HSY Dividend Analysis

5.1 Amount

  • HSY has a Yearly Dividend Yield of 2.76%.
  • Compared to an average industry Dividend Yield of 2.47, HSY pays a bit more dividend than its industry peers.
  • HSY's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.76%

5.2 History

  • The dividend of HSY is nicely growing with an annual growth rate of 11.76%!
  • HSY has paid a dividend for at least 10 years, which is a reliable track record.
  • HSY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.76%
Div Incr Years15
Div Non Decr Years34
HSY Yearly Dividends per shareHSY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • HSY pays out 122.87% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of HSY is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP122.87%
EPS Next 2Y25.47%
EPS Next 3Y20.45%
HSY Yearly Income VS Free CF VS DividendHSY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
HSY Dividend Payout.HSY Dividend Payout, showing the Payout Ratio.HSY Dividend Payout.PayoutRetained Earnings

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HSY Fundamentals: All Metrics, Ratios and Statistics

HERSHEY CO/THE

NYSE:HSY (3/23/2026, 2:48:58 PM)

215.975

+5.84 (+2.78%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners88.65%
Inst Owner Change0.41%
Ins Owners0.24%
Ins Owner Change0.3%
Market Cap43.78B
Revenue(TTM)11.69B
Net Income(TTM)883.26M
Analysts67.59
Price Target232.65 (7.72%)
Short Float %5.61%
Short Ratio4.11
Dividend
Industry RankSector Rank
Dividend Yield 2.76%
Yearly Dividend5.36
Dividend Growth(5Y)11.76%
DP122.87%
Div Incr Years15
Div Non Decr Years34
Ex-Date02-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.5%
Min EPS beat(2)20.39%
Max EPS beat(2)20.62%
EPS beat(4)4
Avg EPS beat(4)17.02%
Min EPS beat(4)6.26%
Max EPS beat(4)20.83%
EPS beat(8)6
Avg EPS beat(8)8.59%
EPS beat(12)10
Avg EPS beat(12)7.54%
EPS beat(16)14
Avg EPS beat(16)8.15%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.19%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)-0.59%
Revenue beat(12)7
Avg Revenue beat(12)-0.46%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)15.42%
PT rev (3m)21.01%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)12.64%
EPS NY rev (1m)17.94%
EPS NY rev (3m)22.72%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.1%
Valuation
Industry RankSector Rank
PE 34.23
Fwd PE 25.37
P/S 3.74
P/FCF 25.03
P/OCF 19.22
P/B 9.44
P/tB N/A
EV/EBITDA 23.37
EPS(TTM)6.31
EY2.92%
EPS(NY)8.51
Fwd EY3.94%
FCF(TTM)8.63
FCFY4%
OCF(TTM)11.24
OCFY5.2%
SpS57.69
BVpS22.88
TBVpS-5.85
PEG (NY)0.98
PEG (5Y)538.91
Graham Number56.99
Profitability
Industry RankSector Rank
ROA 6.43%
ROE 19.05%
ROCE 13.99%
ROIC 11.14%
ROICexc 12.17%
ROICexgc 29.05%
OM 12.84%
PM (TTM) 7.55%
GM 33.55%
FCFM 14.96%
ROA(3y)13.08%
ROA(5y)13.69%
ROE(3y)37.19%
ROE(5y)43%
ROIC(3y)18.61%
ROIC(5y)19.34%
ROICexc(3y)19.85%
ROICexc(5y)20.49%
ROICexgc(3y)42.97%
ROICexgc(5y)47.25%
ROCE(3y)25.08%
ROCE(5y)26.14%
ROICexgc growth 3Y-21.82%
ROICexgc growth 5Y-11.95%
ROICexc growth 3Y-19.39%
ROICexc growth 5Y-12.71%
OM growth 3Y-16.11%
OM growth 5Y-10.52%
PM growth 3Y-21.78%
PM growth 5Y-13.6%
GM growth 3Y-8.07%
GM growth 5Y-5.89%
F-Score4
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 3.09
Debt/EBITDA 2.44
Cap/Depr 104.87%
Cap/Sales 4.52%
Interest Coverage 7.66
Cash Conversion 113.61%
Profit Quality 198.03%
Current Ratio 1.19
Quick Ratio 0.72
Altman-Z 4.63
F-Score4
WACC8.37%
ROIC/WACC1.33
Cap/Depr(3y)140.55%
Cap/Depr(5y)143.23%
Cap/Sales(3y)5.61%
Cap/Sales(5y)5.47%
Profit Quality(3y)122.7%
Profit Quality(5y)117.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.66%
EPS 3Y-9.52%
EPS 5Y0.06%
EPS Q2Q%-36.43%
EPS Next Y34.93%
EPS Next 2Y25.47%
EPS Next 3Y20.45%
EPS Next 5Y13.41%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%7.05%
Revenue Next Year5.68%
Revenue Next 2Y4.02%
Revenue Next 3Y3.65%
Revenue Next 5Y3.23%
EBIT growth 1Y-49.96%
EBIT growth 3Y-12.82%
EBIT growth 5Y-3.82%
EBIT Next Year62.91%
EBIT Next 3Y25.58%
EBIT Next 5Y15.17%
FCF growth 1Y-9.17%
FCF growth 3Y-1.1%
FCF growth 5Y7.01%
OCF growth 1Y-10.04%
OCF growth 3Y-0.73%
OCF growth 5Y6.17%

HERSHEY CO/THE / HSY Fundamental Analysis 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 4 / 10 to HERSHEY CO/THE (HSY). This can be considered as Fairly Valued.


What is the profitability of HSY stock?

HERSHEY CO/THE (HSY) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for HSY stock?

The Price/Earnings (PE) ratio for HERSHEY CO/THE (HSY) is 34.23 and the Price/Book (PB) ratio is 9.44.


Can you provide the expected EPS growth for HSY stock?

The Earnings per Share (EPS) of HERSHEY CO/THE (HSY) is expected to grow by 34.93% in the next year.