HERSHEY CO/THE (HSY) Fundamental Analysis & Valuation

NYSE:HSY • US4278661081

Current stock price

213.73 USD
+3.3 (+1.57%)
At close:
213.73 USD
0 (0%)
After Hours:

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

  • HSY had positive earnings in the past year.
  • HSY had a positive operating cash flow in the past year.
  • 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 has a Return On Equity of 19.05%. This is amongst the best in the industry. HSY outperforms 91.95% of its industry peers.
  • HSY has a better Return On Invested Capital (11.14%) than 90.80% of its industry peers.
  • HSY had an Average Return On Invested Capital over the past 3 years of 18.61%. This is significantly above the industry average of 7.23%.
  • 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.
  • The number of shares outstanding for HSY has been increased 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.
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 4.68 indicates that HSY is not in any danger for bankruptcy at the moment.
  • HSY's Altman-Z score of 4.68 is amongst the best of the industry. HSY outperforms 89.66% of its industry peers.
  • HSY has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as HSY would need 3.09 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.09, HSY belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
  • HSY has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
  • HSY has a worse Debt to Equity ratio (1.06) than 71.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 3.09
Altman-Z 4.68
ROIC/WACC1.32
WACC8.43%
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 has a worse Current ratio (1.19) than 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.
  • With a Quick ratio value of 0.72, HSY is not doing good in the industry: 64.37% of the companies in the same industry are doing better.
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

  • HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.66%.
  • 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

  • Based on estimates for the next years, HSY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.41% on average per year.
  • The Revenue is expected to grow by 3.23% on average over the next years.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

  • A Price/Earnings ratio of 33.87 indicates a quite expensive valuation of HSY.
  • HSY's Price/Earnings is on the same level as the industry average.
  • HSY is valuated rather expensively when we compare the Price/Earnings ratio to 24.89, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 25.10, HSY can be considered very expensive at the moment.
  • HSY's Price/Forward Earnings ratio is in line with the industry average.
  • HSY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 33.87
Fwd PE 25.1
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSY is on the same level as its industry peers.
  • HSY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.77
EV/EBITDA 23.73
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.
  • HSY has an outstanding profitability rating, which may justify a higher PE ratio.
  • HSY's earnings are expected to grow with 20.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)533.31
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%. Purely for dividend investing, there may be better candidates out there.
  • HSY's Dividend Yield is a higher than the industry average which is at 2.45.
  • Compared to an average S&P500 Dividend Yield of 1.89, HSY pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.76%

5.2 History

  • On average, the dividend of HSY grows each year by 11.76%, 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 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

  • 122.87% of the earnings are spent on dividend by HSY. 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 (3/27/2026, 8:23:57 PM)

After market: 213.73 0 (0%)

213.73

+3.3 (+1.57%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-05
Earnings (Next)04-23
Inst Owners88.65%
Inst Owner Change0.41%
Ins Owners0.24%
Ins Owner Change-1.28%
Market Cap43.32B
Revenue(TTM)11.69B
Net Income(TTM)883.26M
Analysts67.59
Price Target236.32 (10.57%)
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)1.57%
PT rev (3m)21.18%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)12.42%
EPS NY rev (1m)17.94%
EPS NY rev (3m)20.62%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.03%
Valuation
Industry RankSector Rank
PE 33.87
Fwd PE 25.1
P/S 3.7
P/FCF 24.77
P/OCF 19.02
P/B 9.34
P/tB N/A
EV/EBITDA 23.73
EPS(TTM)6.31
EY2.95%
EPS(NY)8.51
Fwd EY3.98%
FCF(TTM)8.63
FCFY4.04%
OCF(TTM)11.24
OCFY5.26%
SpS57.69
BVpS22.88
TBVpS-5.85
PEG (NY)0.97
PEG (5Y)533.31
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 4.68
F-Score4
WACC8.43%
ROIC/WACC1.32
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 33.87 and the Price/Book (PB) ratio is 9.34.


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.