HERSHEY CO/THE (HSY) Fundamental Analysis & Valuation

NYSE:HSY • US4278661081

Current stock price

182.34 USD
-3.4 (-1.83%)
At close:
180.97 USD
-1.37 (-0.75%)
Pre-Market:

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.
  • HSY had a positive operating cash flow in the past year.
  • HSY had positive earnings in each of the past 5 years.
  • In the past 5 years HSY always reported a positive cash flow from operatings.
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

  • HSY has a better Return On Assets (7.91%) than 85.06% of its industry peers.
  • HSY has a Return On Equity of 23.11%. This is amongst the best in the industry. HSY outperforms 90.80% of its industry peers.
  • HSY has a better Return On Invested Capital (13.04%) than 91.95% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HSY is significantly above the industry average of 7.69%.
  • The 3 year average ROIC (18.61%) for HSY is well above the current ROIC(13.04%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 7.91%
ROE 23.11%
ROIC 13.04%
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

  • With an excellent Profit Margin value of 9.12%, HSY belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
  • HSY's Profit Margin has declined in the last couple of years.
  • HSY's Operating Margin of 14.68% is amongst the best of the industry. HSY outperforms 89.66% of its industry peers.
  • HSY's Operating Margin has declined in the last couple of years.
  • HSY's Gross Margin of 35.03% is amongst the best of the industry. HSY outperforms 83.91% of its industry peers.
  • HSY's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.68%
PM (TTM) 9.12%
GM 35.03%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. HSY Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HSY is creating value.
  • Compared to 1 year ago, HSY has more shares outstanding
  • Compared to 5 years ago, HSY has less shares outstanding
  • 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

  • An Altman-Z score of 4.35 indicates that HSY is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of HSY (4.35) is better than 86.21% of its industry peers.
  • HSY has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as HSY would need 2.89 years to pay back of all of its debts.
  • The Debt to FCF ratio of HSY (2.89) is better than 81.61% of its industry peers.
  • HSY has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
  • HSY has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: HSY underperforms 68.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.03
Debt/FCF 2.89
Altman-Z 4.35
ROIC/WACC1.57
WACC8.28%
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 1.24. 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 1.24 is on the low side compared to the rest of the industry. HSY is outperformed by 65.52% of its industry peers.
  • HSY has a Quick Ratio of 1.24. 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 has a Quick ratio of 0.77. This is comparable to the rest of the industry: HSY outperforms 45.98% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.77
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 -21.69% in the last year.
  • Measured over the past 5 years, HSY shows a small growth in Earnings Per Share. The EPS has been growing by 0.06% on average per year.
  • Looking at the last year, HSY shows a quite strong growth in Revenue. The Revenue has grown by 11.50% in the last year.
  • The Revenue has been growing slightly by 7.49% on average over the past years.
EPS 1Y (TTM)-21.69%
EPS 3Y-9.52%
EPS 5Y0.06%
EPS Q2Q%12.44%
Revenue 1Y (TTM)11.5%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%10.65%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.64% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y35.52%
EPS Next 2Y26.03%
EPS Next 3Y19.89%
EPS Next 5Y13.64%
Revenue Next Year5.8%
Revenue Next 2Y4.26%
Revenue Next 3Y3.77%
Revenue Next 5Y3.83%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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.
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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Find the best growth stocksShow best growing peers

4

4. HSY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.75, the valuation of HSY can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of HSY is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 26.51. HSY is around the same levels.
  • HSY is valuated rather expensively with a Price/Forward Earnings ratio of 18.19.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HSY.
  • HSY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.41.
Industry RankSector Rank
PE 27.75
Fwd PE 18.19
HSY Price Earnings VS Forward Price EarningsHSY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 19.95
EV/EBITDA 18.12
HSY Per share dataHSY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • HSY has an outstanding profitability rating, which may justify a higher PE ratio.
  • HSY's earnings are expected to grow with 19.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)436.98
EPS Next 2Y26.03%
EPS Next 3Y19.89%

More info and screens

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 3.19%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.27, 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 1.80.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • On average, the dividend of HSY grows each year by 11.76%, which is quite nice.
  • HSY has paid a dividend for at least 10 years, which is a reliable track record.
  • HSY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.76%
Div Incr Years0
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

  • 100.69% of the earnings are spent on dividend by HSY. This is not a sustainable payout ratio.
  • HSY's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP100.69%
EPS Next 2Y26.03%
EPS Next 3Y19.89%
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

More info and screens

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HSY Fundamentals: All Metrics, Ratios and Statistics

HERSHEY CO/THE

NYSE:HSY (5/1/2026, 8:04:00 PM)

Premarket: 180.97 -1.37 (-0.75%)

182.34

-3.4 (-1.83%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Industry Strength23.6
Industry Growth11.8
Earnings (Last)04-30
Earnings (Next)07-28
Inst Owners88.6%
Inst Owner Change0.05%
Ins Owners0.17%
Ins Owner Change-8.05%
Market Cap36.96B
Revenue(TTM)11.99B
Net Income(TTM)1.09B
Analysts67.33
Price Target229.41 (25.81%)
Short Float %6.39%
Short Ratio5.06
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend5.36
Dividend Growth(5Y)11.76%
DP100.69%
Div Incr Years0
Div Non Decr Years34
Ex-Date05-15
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.21%
Min EPS beat(2)13.79%
Max EPS beat(2)20.62%
EPS beat(4)4
Avg EPS beat(4)18.91%
Min EPS beat(4)13.79%
Max EPS beat(4)20.83%
EPS beat(8)6
Avg EPS beat(8)9.05%
EPS beat(12)10
Avg EPS beat(12)7.85%
EPS beat(16)14
Avg EPS beat(16)7.8%
Revenue beat(2)2
Avg Revenue beat(2)2.12%
Min Revenue beat(2)1.51%
Max Revenue beat(2)2.73%
Revenue beat(4)4
Avg Revenue beat(4)2.01%
Min Revenue beat(4)1.19%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)-0.84%
Revenue beat(12)7
Avg Revenue beat(12)-0.48%
Revenue beat(16)11
Avg Revenue beat(16)0.42%
PT rev (1m)-2.92%
PT rev (3m)16.4%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)11.97%
EPS NY rev (1m)0.03%
EPS NY rev (3m)19.27%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.13%
Valuation
Industry RankSector Rank
PE 27.75
Fwd PE 18.19
P/S 3.08
P/FCF 19.95
P/OCF 15.73
P/B 7.81
P/tB N/A
EV/EBITDA 18.12
EPS(TTM)6.57
EY3.6%
EPS(NY)10.02
Fwd EY5.5%
FCF(TTM)9.14
FCFY5.01%
OCF(TTM)11.59
OCFY6.36%
SpS59.16
BVpS23.36
TBVpS-5.19
PEG (NY)0.78
PEG (5Y)436.98
Graham Number58.7577 (-67.78%)
Profitability
Industry RankSector Rank
ROA 7.91%
ROE 23.11%
ROCE 16.29%
ROIC 13.04%
ROICexc 14.17%
ROICexgc 33.2%
OM 14.68%
PM (TTM) 9.12%
GM 35.03%
FCFM 15.45%
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-Score6
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 1.03
Debt/FCF 2.89
Debt/EBITDA 2.13
Cap/Depr 96.16%
Cap/Sales 4.15%
Interest Coverage 7.73
Cash Conversion 103.18%
Profit Quality 169.28%
Current Ratio 1.24
Quick Ratio 0.77
Altman-Z 4.35
F-Score6
WACC8.28%
ROIC/WACC1.57
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)-21.69%
EPS 3Y-9.52%
EPS 5Y0.06%
EPS Q2Q%12.44%
EPS Next Y35.52%
EPS Next 2Y26.03%
EPS Next 3Y19.89%
EPS Next 5Y13.64%
Revenue 1Y (TTM)11.5%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%10.65%
Revenue Next Year5.8%
Revenue Next 2Y4.26%
Revenue Next 3Y3.77%
Revenue Next 5Y3.83%
EBIT growth 1Y-24.14%
EBIT growth 3Y-12.82%
EBIT growth 5Y-3.82%
EBIT Next Year64.2%
EBIT Next 3Y25.46%
EBIT Next 5Y15.68%
FCF growth 1Y39.41%
FCF growth 3Y-1.1%
FCF growth 5Y7.01%
OCF growth 1Y9.95%
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.


How profitable is HERSHEY CO/THE (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 27.75 and the Price/Book (PB) ratio is 7.81.


How financially healthy is HERSHEY CO/THE?

The financial health rating of HERSHEY CO/THE (HSY) is 5 / 10.