HERSHEY CO/THE (HSY) Fundamental Analysis & Valuation

NYSE:HSY • US4278661081

Current stock price

182.34 USD
-3.4 (-1.83%)
At close:
182.34 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

  • 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

  • HSY has a Return On Assets of 6.43%. This is in the better half of the industry: HSY outperforms 78.16% of its industry peers.
  • With an excellent Return On Equity value of 19.05%, HSY belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 11.14%, HSY belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HSY is significantly above the industry average of 7.69%.
  • The last Return On Invested Capital (11.14%) for HSY is well below the 3 year average (18.61%), which needs to be investigated, but indicates that HSY had better years and this may not be a problem.
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

  • The Profit Margin of HSY (7.55%) is better than 82.76% of its industry peers.
  • HSY's Profit Margin has declined in the last couple of years.
  • HSY has a better Operating Margin (12.84%) than 86.21% of its industry peers.
  • HSY's Operating Margin has declined in the last couple of years.
  • HSY's Gross Margin of 33.55% is fine compared to the rest of the industry. HSY outperforms 77.01% 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

  • HSY has an Altman-Z score of 4.26. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
  • HSY has a Altman-Z score of 4.26. This is amongst the best in the industry. HSY outperforms 82.76% 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.
  • HSY's Debt to FCF ratio of 3.09 is amongst the best of the industry. HSY outperforms 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.
  • HSY has a worse Debt to Equity ratio (1.06) than 70.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 3.09
Altman-Z 4.26
ROIC/WACC1.35
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

  • A Current Ratio of 1.19 indicates that HSY should not have too much problems paying 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 65.52% 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: 66.67% 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

  • 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.
  • The Revenue has been growing slightly by 4.38% in the past 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)-21.69%
EPS 3Y-9.52%
EPS 5Y0.06%
EPS Q2Q%12.44%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%10.65%

3.2 Future

  • HSY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.64% yearly.
  • HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y34.97%
EPS Next 2Y25.8%
EPS Next 3Y19.78%
EPS Next 5Y13.64%
Revenue Next Year5.71%
Revenue Next 2Y4.19%
Revenue Next 3Y3.72%
Revenue Next 5Y3.83%

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.
  • 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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4

4. HSY Valuation Analysis

4.1 Price/Earnings Ratio

  • HSY is valuated quite expensively with a Price/Earnings ratio of 27.75.
  • 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 26.64, which is the current average of the S&P500 Index.
  • HSY is valuated rather expensively with a Price/Forward Earnings ratio of 18.26.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HSY.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, HSY is valued at the same level.
Industry RankSector Rank
PE 27.75
Fwd PE 18.26
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSY is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSY is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 21.13
EV/EBITDA 20.56
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 19.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)436.98
EPS Next 2Y25.8%
EPS Next 3Y19.78%

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 3.13%. 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 2.28.
  • Compared to an average S&P500 Dividend Yield of 1.80, HSY pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.13%

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 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 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

  • 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 2Y25.8%
EPS Next 3Y19.78%
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 (5/1/2026, 8:04:00 PM)

After market: 182.34 0 (0%)

182.34

-3.4 (-1.83%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Industry Strength23.6
Industry Growth11.18
Earnings (Last)04-30
Earnings (Next)07-28
Inst Owners88.6%
Inst Owner Change-0.02%
Ins Owners0.17%
Ins Owner Change-6.45%
Market Cap36.96B
Revenue(TTM)11.69B
Net Income(TTM)883.26M
Analysts67.59
Price Target229.41 (25.81%)
Short Float %6.39%
Short Ratio5.06
Dividend
Industry RankSector Rank
Dividend Yield 3.13%
Yearly Dividend5.36
Dividend Growth(5Y)11.76%
DP122.87%
Div Incr Years0
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)-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 18.26
P/S 3.16
P/FCF 21.13
P/OCF 16.23
P/B 7.97
P/tB N/A
EV/EBITDA 20.56
EPS(TTM)6.57
EY3.6%
EPS(NY)9.99
Fwd EY5.48%
FCF(TTM)8.63
FCFY4.73%
OCF(TTM)11.24
OCFY6.16%
SpS57.69
BVpS22.88
TBVpS-5.85
PEG (NY)0.79
PEG (5Y)436.98
Graham Number58.152 (-68.11%)
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 4.26
F-Score4
WACC8.28%
ROIC/WACC1.35
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 Y34.97%
EPS Next 2Y25.8%
EPS Next 3Y19.78%
EPS Next 5Y13.64%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y3.92%
Revenue growth 5Y7.49%
Sales Q2Q%10.65%
Revenue Next Year5.71%
Revenue Next 2Y4.19%
Revenue Next 3Y3.72%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.96%
EBIT growth 3Y-12.82%
EBIT growth 5Y-3.82%
EBIT Next Year63.4%
EBIT Next 3Y25.26%
EBIT Next 5Y15.68%
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.


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 7.97.


How financially healthy is HERSHEY CO/THE?

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