HERSHEY CO/THE (HSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HSY - US4278661081 - Common Stock
199.12 USD
+3.83 (+1.96%)
199.455 USD
+0.34 (+0.17%)
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 scores excellent on profitability, but 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
- In the past year HSY was profitable.
- HSY had a positive operating cash flow in the past year.
- HSY had positive earnings in each of the past 5 years.
- HSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.01%, HSY belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
- The Return On Equity of HSY (29.79%) is better than 97.70% of its industry peers.
- HSY's Return On Invested Capital of 16.48% is amongst the best of the industry. HSY outperforms 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 27.80%.
- The 3 year average ROIC (23.99%) for HSY is well above the current ROIC(16.48%). The reason for the recent decline needs to be investigated.
| 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
- HSY has a better Profit Margin (11.84%) than 93.10% of its industry peers.
- HSY's Profit Margin has improved in the last couple of years.
- The Operating Margin of HSY (17.27%) is better than 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.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- The debt/assets ratio for HSY has been reduced compared to a year ago.
2.2 Solvency
- HSY has an Altman-Z score of 4.63. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HSY (4.63) is better than 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.
- Looking at the Debt to FCF ratio, with a value of 3.05, HSY belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- 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 | 4.63 |
ROIC/WACC2.01
WACC8.2%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HSY should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.36, HSY perfoms like the industry average, outperforming 40.23% of the companies in the same industry.
- A Quick Ratio of 0.83 indicates that HSY may have some problems paying its short term obligations.
- With a Quick ratio value of 0.83, HSY perfoms like the industry average, outperforming 44.83% of the companies in the same 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.
- HSY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.11% yearly.
- Looking at the last year, HSY shows a small growth in Revenue. The Revenue has grown by 4.71% in the last year.
- Measured over the past years, HSY shows a small growth in Revenue. The Revenue has been growing by 7.00% on average per year.
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.
- The Revenue is expected to grow by 3.41% on average over the next years.
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
- HSY is valuated quite expensively with a Price/Earnings ratio of 27.31.
- HSY's Price/Earnings ratio is in line with the industry average.
- HSY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.33.
- A Price/Forward Earnings ratio of 28.21 indicates a quite expensive valuation of HSY.
- HSY's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, HSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 28.21 |
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 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 | 22.84 | ||
| EV/EBITDA | 17.6 |
4.3 Compensation for Growth
- HSY has an outstanding profitability rating, which 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)2.7
EPS Next 2Y-13.21%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.97%, HSY has a reasonable but not impressive dividend return.
- HSY's Dividend Yield is a higher than the industry average which is at 2.42.
- HSY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
199.12
+3.83 (+1.96%)
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 Cap40.38B
Revenue(TTM)11.49B
Net Income(TTM)1.36B
Analysts66.21
Price Target195 (-2.07%)
Short Float %6.18%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 | 27.31 | ||
| Fwd PE | 28.21 | ||
| P/S | 3.51 | ||
| P/FCF | 22.84 | ||
| P/OCF | 17.61 | ||
| P/B | 8.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.6 |
EPS(TTM)7.29
EY3.66%
EPS(NY)7.06
Fwd EY3.54%
FCF(TTM)8.72
FCFY4.38%
OCF(TTM)11.3
OCFY5.68%
SpS56.66
BVpS22.51
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)2.7
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 | 4.63 |
F-Score4
WACC8.2%
ROIC/WACC2.01
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 27.31 and the Price/Book (PB) ratio is 8.85.
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.