HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
197.76 USD
-3.31 (-1.65%)
197.76 USD
0 (0%)
Taking everything into account, HSY scores 6 out of 10 in our fundamental rating. HSY was compared to 87 industry peers in the Food Products industry. HSY has an excellent profitability rating, 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.
- 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.
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's Return On Equity of 29.79% is amongst the best of the industry. HSY outperforms 97.70% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.48%, HSY belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HSY is below the industry average of 27.80%.
- 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 93.10% 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 96.55% of the companies in the same industry.
- HSY's Operating Margin has improved in the last couple of years.
- HSY's Gross Margin of 37.74% is amongst the best of the industry. HSY outperforms 83.91% 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.
- Compared to 1 year ago, HSY has less shares outstanding
- HSY has less shares outstanding than it did 5 years ago.
- HSY has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.71 indicates that HSY is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.71, HSY belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
- HSY has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as HSY would need 3.05 years to pay back of all of its debts.
- HSY has a Debt to FCF ratio of 3.05. This is amongst the best in the industry. HSY outperforms 82.76% 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 has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: HSY underperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.71 |
ROIC/WACC2
WACC8.25%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HSY should not have too much problems paying its short term obligations.
- HSY's Current ratio of 1.36 is in line compared to the rest of the industry. HSY outperforms 40.23% 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 has a Quick ratio (0.83) which 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 HSY 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.
- HSY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.71%.
- HSY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.00% yearly.
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.
- Based on estimates for the next years, HSY will show a small growth in Revenue. The Revenue will grow by 3.41% on average per year.
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
- With a Price/Earnings ratio of 27.13, HSY can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of HSY is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of HSY to the average of the S&P500 Index (27.47), we can say HSY is valued inline with the index average.
- With a Price/Forward Earnings ratio of 28.02, HSY can be considered very expensive at the moment.
- HSY's Price/Forward 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/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 28.02 |
4.2 Price Multiples
- HSY's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSY indicates a somewhat cheap valuation: HSY is cheaper than 63.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.69 | ||
| EV/EBITDA | 18.07 |
4.3 Compensation for Growth
- The excellent profitability rating of HSY 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)2.68
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
- HSY has a Yearly Dividend Yield of 2.73%.
- Compared to an average industry Dividend Yield of 2.34, HSY pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.87, HSY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
- On average, the dividend of HSY grows each year by 12.83%, which is quite nice.
- 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
- HSY pays out 79.75% of its income as dividend. 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%
197.76
-3.31 (-1.65%)
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 Change0.16%
Ins Owners0.19%
Ins Owner Change0.96%
Market Cap40.10B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target197.09 (-0.34%)
Short Float %6.18%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)1.43%
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 | 27.13 | ||
| Fwd PE | 28.02 | ||
| P/S | 3.49 | ||
| P/FCF | 22.69 | ||
| P/OCF | 17.49 | ||
| P/B | 8.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.07 |
EPS(TTM)7.29
EY3.69%
EPS(NY)7.06
Fwd EY3.57%
FCF(TTM)8.72
FCFY4.41%
OCF(TTM)11.3
OCFY5.72%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.68
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 | 4.71 |
F-Score4
WACC8.25%
ROIC/WACC2
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 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 27.13 and the Price/Book (PB) ratio is 8.79.
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.