A Business at a Glance
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HERSHEY CO
HSY
$35.4B
Mkt Cap
$174.30
+1.25%
HERSHEY CO (HSY) has a current P/E ratio of 40.2, compared to its historical median P/E of 23.8. The stock is currently considered Expensive based on its historical valuation range.
HERSHEY CO (HSY) has a 5-year average return on invested capital (ROIC) of 23.4%. This indicates strong capital allocation and a potential competitive advantage.
HERSHEY CO (HSY) has a market capitalization of $35.4B. It is classified as a large-cap stock.
Yes, HERSHEY CO (HSY) pays a dividend with a trailing twelve-month yield of 3.12%. The company also returns capital through share buybacks, with a buyback yield of 0.20%.
Based on historical P/E analysis, HERSHEY CO (HSY) appears expensive. The current P/E of 40.2 is 69% above its historical median of 23.8. The estimated fair value CAGR (P/E method) is 9.8%.
HERSHEY CO (HSY) operates in the Sugar & Confectionery Products industry, within the Consumer Defensive sector.
HERSHEY CO (HSY) reported annual revenue of $11.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
The Hershey Company is a global confectionery leader that manufactures, markets, and distributes chocolate, non-chocolate confectionery, gum, mints, protein bars, and salty snacks under more than 85 brand names across approximately 65 countries, with particular strength as the largest producer of quality chocolate in North America. The company operates through three segments: North America Confectionery (traditional chocolate and non-chocolate confectionery, gum, refreshment products, protein bars, spreads, and retail operations including Hershey's Chocolate World stores); North America Salty Snacks (ready-to-eat popcorn, baked snacks, and pretzels); and International (operations in Mexico, Brazil, India, Malaysia, and export markets across Asia, Latin America, Middle East, Europe, and Africa). Hershey's business model relies on a portfolio of iconic brands including Hershey's, Reese's, Kisses, Jolly Rancher, Kit Kat, Cadbury, and recently acquired brands such as LesserEvil and Sour Strips, distributed through wholesale distributors, chain grocery stores, mass merchandisers, drug stores, vending companies, and convenience stores, with approximately 27% of consolidated net sales to McLane Company, a major U.S. wholesale distributor. The company's competitive moat derives from strong brand equities, product innovation, superior product quality, and an efficient distribution network, while unit economics are characterized by commodity-dependent input costs (particularly cocoa, sugar, and dairy products) that are managed through pricing adjustments, weight changes, and a Swiss-based trading company that handles cocoa procurement and price risk management. Hershey's customers are primarily resellers to end-consumers in retail outlets, and the company manufactures primarily for stock with minimal backlog, experiencing seasonal sales patterns with higher volumes in the third and fourth quarters.
【Margin expansion and pricing normalization】 Management expects gross margin expansion to accelerate through 2026, with nearly 300 basis points improvement anticipated in Q2 and greater than 500 basis points in the back half of the year, driven by favorable cocoa pricing dynamics and pricing actions flowing through the P&L. The company anticipates cocoa costs to remain inflationary for the full year 2026 but expects a larger supply surplus in 2025 and 2026 that could create deflation opportunities in 2027 and beyond, positioning the business for potential upside if cocoa prices decline as expected. Management is monitoring macroeconomic headwinds including SNAP program changes and GLP-1 adoption, which are factored into guidance as manageable headwinds, while elasticities on pricing have been running more favorably than originally modeled, supporting confidence in the full-year outlook. The company plans double-digit increases in marketing and advertising investment across the year to support innovation launches, including premium product offerings and new brand introductions targeted at Gen Z consumers, while maintaining focus on core business profitability and operational leverage in the salty snacks segment, which is expected to deliver double-digit operating income growth for the year.
| Metric | Target | Period |
|---|---|---|
| Gross margin improvement | greater than 500 basis points | Back half of 2026 |
| Salty Snacks operating income growth | double digits | Full year 2026 |
| Marketing and advertising investment | double-digit increase | Full year 2026 |
| Organic sales growth | 2.5%-3.5% | Full year 2026 |
| Earnings per share growth | 30%-35% | Full year 2026 |
Gross margin improvement (Back half of 2026): “As we get to the back half of the year, you know, we expect something greater than 500 basis points”
Salty Snacks operating income growth (Full year 2026): “we expect operating income to grow and increase by double digits for the year”
Marketing and advertising investment (Full year 2026): “Still expect to see double-digit increase in marketing and advertising”
Organic sales growth (Full year 2026): “your 2026 guidance, 2.5-3.5 organic sales”
Earnings per share growth (Full year 2026): “now kind of expecting 30%-35% earnings growth”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 12.0B | 11.7B | 11.2B | 11.2B | 10.4B | 9.0B |
| Net Income | 1.1B | 883M | 2.2B | 1.9B | 1.6B | 1.5B |
| EPS | $0.00 | $4.35 | $10.98 | $9.11 | $8.02 | $7.17 |
| Free Cash Flow | 1.9B | 1.8B | 1.9B | 1.6B | 1.8B | 1.6B |
| ROIC | 13.7% | 11.3% | 29.0% | 26.7% | 25.2% | 25.0% |
| Gross Margin | 35.0% | 33.5% | 47.3% | 44.8% | 43.2% | 45.1% |
| Debt/Equity | 1.13 | 1.24 | 1.16 | 1.25 | 1.55 | 1.95 |
| Dividends/Share | $5.43 | $5.35 | $5.36 | $4.35 | $3.78 | $3.33 |
| Operating Income | 1.7B | 1.4B | 2.9B | 2.6B | 2.3B | 2.0B |
| Operating Margin | 14.3% | 12.3% | 25.9% | 22.9% | 21.7% | 22.8% |
| ROE | 23.1% | 18.9% | 50.4% | 50.3% | 54.3% | 59.2% |
| Shares Outstanding | 203M | 203M | 202M | 204M | 205M | 206M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 7.4B | 7.4B | 7.4B | 7.5B | 7.8B | 8.0B | 8.1B | 9.0B | 10.4B | 11.2B | 11.2B | 11.7B | 12.0B |
| Gross Margin | 45.0% | 45.8% | 42.6% | 46.0% | 45.9% | 45.4% | 45.4% | 45.1% | 43.2% | 44.8% | 47.3% | 33.5% | 35.0% |
| R&D | 48M | 49M | 47M | 46M | 39M | 37M | 38M | 40M | 47M | 50M | 56M | 62M | 62M |
| SG&A | 1.9B | 2.0B | 1.9B | 1.9B | 1.9B | 1.9B | 1.9B | 2.0B | 2.2B | 2.4B | 2.4B | 2.5B | 2.5B |
| EBIT | 1.4B | 1.0B | 1.3B | 1.3B | 1.6B | 1.6B | 1.8B | 2.0B | 2.3B | 2.6B | 2.9B | 1.4B | 1.7B |
| Op. Margin | 18.8% | 14.0% | 16.9% | 17.5% | 20.8% | 20.0% | 21.9% | 22.8% | 21.7% | 22.9% | 25.9% | 12.3% | 14.3% |
| Net Income | 847M | 513M | 720M | 783M | 1.2B | 1.1B | 1.3B | 1.5B | 1.6B | 1.9B | 2.2B | 883M | 1.1B |
| Net Margin | 11.4% | 6.9% | 9.7% | 10.4% | 15.1% | 14.4% | 15.7% | 16.5% | 15.8% | 16.7% | 19.8% | 7.6% | 9.1% |
| Non-Recurring | 68M | 402M | 94M | 69M | 52M | 9.2M | 32M | 17M | 4.4M | 3.4M | 118M | 66M | 47M |
| Returns on Capital | |||||||||||||
| ROIC | 32.2% | 20.0% | 25.1% | 25.8% | 30.9% | 24.1% | 26.6% | 25.0% | 25.2% | 26.7% | 29.0% | 11.3% | 13.7% |
| ROE | 55.4% | 41.8% | 80.7% | 92.1% | 101.8% | 73.3% | 64.4% | 59.2% | 54.3% | 50.3% | 50.4% | 18.9% | 23.1% |
| ROA | 15.4% | 9.4% | 13.2% | 14.1% | 17.8% | 14.5% | 14.8% | 15.1% | 15.4% | 16.3% | 17.9% | 6.6% | 7.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 844M | 1.3B | 1.0B | 1.2B | 1.6B | 1.8B | 1.7B | 2.1B | 2.3B | 2.3B | 2.5B | 2.3B | 2.3B |
| Free Cash Flow | 474M | 900M | 744M | 992M | 1.3B | 1.4B | 1.3B | 1.6B | 1.8B | 1.6B | 1.9B | 1.8B | 1.9B |
| Owner Earnings | 579M | 960M | 657M | 937M | 1.3B | 1.4B | 1.3B | 1.7B | 1.9B | 1.8B | 2.0B | 1.7B | 1.8B |
| CapEx | 371M | 357M | 269M | 258M | 329M | 318M | 442M | 496M | 519M | 771M | 606M | 455M | 424M |
| Maint. CapEx | 212M | 245M | 302M | 262M | 295M | 292M | 295M | 315M | 379M | 420M | 455M | 504M | 517M |
| Growth CapEx | 159M | 112M | 0 | 0 | 33M | 27M | 147M | 181M | 141M | 351M | 151M | 0 | 0 |
| D&A | 212M | 245M | 302M | 262M | 295M | 292M | 295M | 315M | 379M | 420M | 455M | 504M | 517M |
| CapEx/OCF | 41.0% | 29.4% | 26.6% | 20.6% | 20.5% | 18.0% | 26.0% | 23.8% | 22.3% | 33.2% | 23.9% | 20.0% | 18.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 440M | 476M | 499M | 526M | 563M | 610M | 641M | 686M | 775M | 889M | 1.1B | 1.1B | 1.1B |
| Dividend Yield | 2.7% | 3.0% | 3.1% | 2.8% | 3.2% | 2.6% | 2.5% | 2.2% | 1.9% | 2.1% | 3.0% | 3.2% | 3.1% |
| Share Buybacks | 577M | 583M | 593M | 300M | 248M | 527M | 211M | 458M | 389M | 265M | 494M | 0 | 69M |
| Buyback Yield | 3.2% | 3.7% | 3.3% | 1.5% | 1.3% | 2.0% | 0.8% | 1.3% | 0.9% | 0.7% | 1.5% | N/A | 0.2% |
| Stock-Based Comp | 54M | 52M | 55M | 51M | 49M | 52M | 58M | 67M | 66M | 81M | 44M | 65M | 69M |
| Debt Repayment | 1.4M | 355M | 500M | 0 | 911M | 6.2M | 704M | 439M | 4.7M | 755M | 306M | 606M | 606M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.7B | 2.1B | 2.7B | 2.5B | 3.9B | 4.0B | 3.7B | 5.0B | 4.7B | 4.7B | 4.7B | 4.8B | 4.5B |
| Cash & Equiv. | 375M | 347M | 297M | 380M | 588M | 493M | 1.1B | 329M | 464M | 402M | 731M | 926M | 877M |
| Long-Term Debt | 1.5B | 1.6B | 2.3B | 2.1B | 3.3B | 3.5B | 4.1B | 4.1B | 3.3B | 3.8B | 3.2B | 4.7B | 4.7B |
| Debt/Equity | 1.50 | 2.43 | 3.79 | 3.19 | 3.19 | 2.58 | 2.16 | 1.95 | 1.55 | 1.25 | 1.16 | 1.24 | 1.13 |
| Interest Coverage | 15.9 | 9.5 | 13.7 | 13.1 | 11.1 | 10.5 | 11.6 | 15.7 | 16.1 | 15.9 | 16.6 | 6.4 | 7.5 |
| Equity | 1.5B | 998M | 786M | 915M | 1.4B | 1.7B | 2.2B | 2.8B | 3.3B | 4.1B | 4.7B | 4.6B | 4.7B |
| Total Assets | 5.6B | 5.3B | 5.5B | 5.6B | 7.7B | 8.1B | 9.1B | 10.4B | 10.9B | 11.9B | 12.9B | 13.7B | 13.8B |
| Total Liabilities | 4.1B | 4.3B | 4.7B | 4.6B | 6.3B | 6.4B | 6.9B | 7.7B | 7.6B | 7.8B | 8.2B | 9.1B | 9.1B |
| Intangibles | 295M | 379M | 493M | 369M | 1.3B | 1.3B | 1.3B | 2.0B | 2.0B | 1.9B | 1.9B | 2.5B | 2.5B |
| Retained Earnings | 5.9B | 5.9B | 6.1B | 6.4B | 7.0B | 1.3B | 1.9B | 2.7B | 3.6B | 4.6B | 5.7B | 5.5B | 5.6B |
| Working Capital | 311M | -369M | -93M | -75M | -179M | 108M | 1.1B | -247M | -637M | -96M | -170M | 577M | 729M |
| Current Assets | 2.2B | 1.8B | 1.8B | 2.0B | 2.2B | 2.1B | 3.0B | 2.2B | 2.6B | 2.9B | 3.8B | 3.6B | 3.8B |
| Current Liabilities | 1.9B | 2.2B | 1.9B | 2.1B | 2.4B | 2.0B | 1.9B | 2.5B | 3.3B | 3.0B | 3.9B | 3.0B | 3.0B |
| Per Share Data | |||||||||||||
| EPS | 3.83 | 2.37 | 3.39 | 3.71 | 5.61 | 5.51 | 6.14 | 7.17 | 8.02 | 9.11 | 10.98 | 4.35 | 0.00 |
| Owner EPS | 2.62 | 4.43 | 3.09 | 4.44 | 5.99 | 6.80 | 6.47 | 8.25 | 9.19 | 8.92 | 10.04 | 8.42 | 8.69 |
| Book Value | 6.58 | 4.60 | 3.70 | 4.34 | 6.67 | 8.33 | 10.73 | 13.38 | 16.10 | 20.05 | 23.30 | 22.86 | 23.34 |
| Cash Flow/Share | 3.82 | 5.80 | 4.77 | 5.93 | 7.63 | 8.45 | 8.16 | 10.11 | 11.36 | 11.37 | 12.51 | 11.23 | 7.94 |
| Dividends/Share | 1.99 | 2.20 | 2.35 | 2.50 | 2.68 | 2.92 | 3.08 | 3.33 | 3.78 | 4.35 | 5.36 | 5.35 | 5.43 |
| Shares Out. | 221.0M | 216.8M | 212.3M | 210.9M | 209.7M | 208.8M | 208.2M | 206.1M | 205.0M | 204.4M | 202.4M | 202.8M | 202.8M |
| Valuation | |||||||||||||
| P/E Ratio | 21.6 | 30.5 | 24.8 | 25.7 | 16.1 | 23.3 | 21.9 | 24.2 | 26.8 | 19.0 | 15.1 | 42.2 | N/A |
| P/FCF | 38.0 | 17.1 | 23.6 | 20.0 | 14.8 | 18.4 | 22.2 | 22.3 | 24.2 | 22.7 | 17.4 | 20.4 | 18.4 |
| EV/EBIT | 14.3 | 16.7 | 16.8 | 16.9 | 14.0 | 19.2 | 17.7 | 19.8 | 21.4 | 15.5 | 13.1 | 28.9 | 23.3 |
| Price/Book | 12.6 | 15.7 | 22.7 | 21.9 | 13.5 | 15.4 | 12.5 | 13.0 | 13.4 | 8.6 | 7.1 | 8.0 | 7.5 |
| Price/Sales | 2.2 | 2.2 | 2.2 | 2.5 | 2.3 | 3.0 | 3.2 | 3.5 | 3.9 | 3.9 | 3.3 | 3.0 | 2.9 |
| FCF Yield | 2.6% | 5.7% | 4.2% | 4.9% | 6.7% | 5.4% | 4.5% | 4.4% | 4.1% | 4.4% | 5.7% | 4.9% | 5.4% |
| Market Cap | 18.3B | 15.6B | 17.8B | 20.1B | 18.9B | 26.8B | 28.0B | 35.7B | 44.1B | 35.4B | 33.6B | 37.2B | 35.4B |
| Avg. Price | 73.61 | 73.29 | 76.69 | 87.98 | 83.61 | 114.34 | 124.60 | 150.47 | 198.37 | 210.38 | 180.14 | 169.61 | 174.30 |
| Year-End Price | 81.32 | 70.75 | 82.76 | 93.91 | 89.75 | 127.43 | 133.89 | 171.86 | 213.36 | 172.06 | 165.22 | 183.00 | 174.30 |
HERSHEY CO passes 6 of 9 quality checks, suggesting mixed fundamentals.
HERSHEY CO trades at 40.2x trailing earnings, compared to its 15-year median P/E of 23.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 14.2x vs a median of 21.3x. The company's 5-year average ROIC is 23.4% with a gross margin of 42.8%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is +14.3%.
HERSHEY CO (HSY) has a net profit margin of 7.6%. This is a modest margin.
HERSHEY CO (HSY) generated $1.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HERSHEY CO (HSY) has a debt-to-equity ratio of 1.24. This indicates moderate leverage.
HERSHEY CO (HSY) reported earnings per share (EPS) of $4.35 in its most recent fiscal year.
HERSHEY CO (HSY) has a return on equity (ROE) of 18.9%. This indicates the company generates strong returns for shareholders.
HERSHEY CO (HSY) has a 5-year average gross margin of 42.8%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for HERSHEY CO (HSY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HERSHEY CO (HSY) has a book value per share of $22.86, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects gross margin expansion to accelerate through 2026, with nearly 300 basis points improvement anticipated in Q2 and greater than 500 basis points in the back half of the year, driven by favorable cocoa pricing dynamics and pricing actions flowing through the P&L. The company anticipates cocoa costs to remain inflationary for the full year 2026 but expects a larger supply surplus in 2025 and 2026 that could create deflation opportunities in 2027 and beyond, positioning the business for potential upside if cocoa prices decline as expected. Management is monitoring macroeconomic headwinds including SNAP program changes and GLP-1 adoption, which are factored into guidance as manageable headwinds, while elasticities on pricing have been running more favorably than originally modeled, supporting confidence in the full-year outlook. The company plans double-digit increases in marketing and advertising investment across the year to support innovation launches, including premium product offerings and new brand introductions targeted at Gen Z consumers, while maintaining focus on core business profitability and operational leverage in the salty snacks segment, which is expected to deliver double-digit operating income growth for the year.
Based on recent SEC filings and earnings calls, HERSHEY CO (HSY) has provided the following forward guidance: Gross margin improvement: greater than 500 basis points (Back half of 2026); Salty Snacks operating income growth: double digits (Full year 2026); Marketing and advertising investment: double-digit increase (Full year 2026); Organic sales growth: 2.5%-3.5% (Full year 2026); Earnings per share growth: 30%-35% (Full year 2026).
No recent press releases.