HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
196.07 USD
-2.8 (-1.41%)
196.07 USD
0 (0%)
HSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While HSY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HSY is valued expensive and it does not seem to be growing.
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.
- Each year in the past 5 years HSY had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 10.01%, HSY belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 29.79%, HSY belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
- The Return On Invested Capital of HSY (16.48%) is better than 94.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HSY is below the industry average of 27.79%.
- 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.
- In the last couple of years the Profit Margin of HSY has grown nicely.
- HSY has a Operating Margin of 17.27%. This is amongst the best in the industry. HSY outperforms 96.55% of its industry peers.
- In the last couple of years the Operating Margin of HSY has grown nicely.
- With an excellent Gross Margin value of 37.74%, HSY belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HSY is creating value.
- The number of shares outstanding for HSY has been reduced compared to 1 year ago.
- Compared to 5 years ago, HSY has less shares outstanding
- HSY has a better debt/assets ratio than last year.
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 85.06% of its industry peers.
- 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.
- The Debt to FCF ratio of HSY (3.05) is better than 82.76% of its industry peers.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that HSY has dependencies on debt financing.
- The Debt to Equity ratio of HSY (1.07) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.68 |
ROIC/WACC1.98
WACC8.3%
2.3 Liquidity
- HSY has a Current Ratio of 1.36. 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 Current ratio of 1.36. This is comparable to the rest of the industry: HSY outperforms 40.23% of its industry peers.
- A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
- HSY's Quick ratio of 0.83 is in line compared to the rest of the industry. HSY outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- HSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.21%.
- HSY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.11% yearly.
- The Revenue has been growing slightly by 4.71% in the past year.
- The Revenue has been growing slightly by 7.00% on average over the past years.
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
- HSY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.75% yearly.
- HSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-35.44%
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
EPS Next 5Y2.75%
Revenue Next Year3.7%
Revenue Next 2Y3.68%
Revenue Next 3Y3.4%
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
- A Price/Earnings ratio of 26.90 indicates a quite expensive valuation of HSY.
- HSY's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, HSY is valued at the same level.
- The Price/Forward Earnings ratio is 27.78, which means the current valuation is very expensive for HSY.
- 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 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 27.78 |
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.
- 64.37% of the companies in the same industry are more expensive than HSY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.49 | ||
| EV/EBITDA | 17.89 |
4.3 Compensation for Growth
- HSY has an outstanding profitability rating, which may justify a higher PE ratio.
- HSY's earnings are expected to decrease with -4.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.66
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
- HSY has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.28, HSY pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.86, 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 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)12.83%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
- 79.75% of the earnings are spent on dividend by HSY. 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%
196.07
-2.8 (-1.41%)
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 Change0.13%
Ins Owners0.19%
Ins Owner Change0.95%
Market Cap39.76B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target197.09 (0.52%)
Short Float %7.1%
Short Ratio6.34
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)2.51%
PT rev (3m)2.6%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)-10.98%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 27.78 | ||
| P/S | 3.46 | ||
| P/FCF | 22.49 | ||
| P/OCF | 17.34 | ||
| P/B | 8.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.89 |
EPS(TTM)7.29
EY3.72%
EPS(NY)7.06
Fwd EY3.6%
FCF(TTM)8.72
FCFY4.45%
OCF(TTM)11.3
OCFY5.77%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.66
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 | 4.68 |
F-Score4
WACC8.3%
ROIC/WACC1.98
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 Year3.7%
Revenue Next 2Y3.68%
Revenue Next 3Y3.4%
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 26.9 and the Price/Book (PB) ratio is 8.71.
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.