HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HSY • US4278661081
194.75 USD
+4.21 (+2.21%)
At close: Jan 30, 2026
194.74 USD
-0.01 (-0.01%)
After Hours: 1/30/2026, 8:04:00 PM
Overall HSY gets a fundamental rating of 6 out of 10. We evaluated HSY 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- HSY had positive earnings in the past year.
- In the past year HSY had a positive cash flow from operations.
- Each year in the past 5 years HSY has been profitable.
- HSY had a positive operating cash flow in each of the past 5 years.
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.
- HSY has a better Return On Equity (29.79%) than 97.70% of its industry peers.
- 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
- The Profit Margin of HSY (11.84%) is better than 93.10% of its industry peers.
- In the last couple of years the Profit Margin of HSY has grown nicely.
- HSY has a better Operating Margin (17.27%) than 96.55% of its industry peers.
- HSY's Operating Margin has improved in the last couple of years.
- 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.
- HSY's Gross Margin has been stable in the last couple of years.
| 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
- HSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, HSY has less shares outstanding
- The number of shares outstanding for HSY has been reduced compared to 5 years ago.
- Compared to 1 year ago, HSY has an improved debt to assets ratio.
2.2 Solvency
- HSY has an Altman-Z score of 4.62. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
- HSY has a Altman-Z score of 4.62. This is amongst the best in the industry. HSY outperforms 86.21% of its industry peers.
- The Debt to FCF ratio of HSY is 3.05, which is a good value as it means it would take HSY, 3.05 years of fcf income to pay off 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's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. HSY is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.99
WACC8.26%
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 (1.36) which is comparable to the rest of the industry.
- A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
- The Quick ratio of HSY (0.83) 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
- 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
- Based on estimates for the next years, HSY will show a small growth in Earnings Per Share. The EPS will grow by 2.75% on average per year.
- The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y-35.36%
EPS Next 2Y-12.7%
EPS Next 3Y-3.89%
EPS Next 5Y2.75%
Revenue Next Year3.72%
Revenue Next 2Y3.63%
Revenue Next 3Y3.36%
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
- Based on the Price/Earnings ratio of 26.71, the valuation of HSY can be described as expensive.
- HSY's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.32. HSY is around the same levels.
- HSY is valuated quite expensively with a Price/Forward Earnings ratio of 27.27.
- HSY's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.71 | ||
| Fwd PE | 27.27 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HSY.
- Based on the Price/Free Cash Flow ratio, HSY is valued a bit cheaper than the industry average as 63.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | 17.55 |
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 -3.89% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y-12.7%
EPS Next 3Y-3.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.88%, HSY has a reasonable but not impressive dividend return.
- HSY's Dividend Yield is a higher than the industry average which is at 2.30.
- HSY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
- The dividend of HSY is nicely growing with an annual growth rate of 12.83%!
- 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
- 79.75% of the earnings are spent on dividend by HSY. This is not a sustainable payout ratio.
- HSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.75%
EPS Next 2Y-12.7%
EPS Next 3Y-3.89%
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 26.71 and the Price/Book (PB) ratio is 8.65.
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 -35.36% in the next year.