The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $33.01B
• Dividend Yield: 3.33%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.07
• Revenue Growth: -5.91%
• EPS Growth: -19.78%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Confectioners
• EPS (TTM): 2.09
• Shares Outstanding: 147,990,280
• 10 Day Avg. Volume: 1,472,225
• 30 Day Avg. Volume: 1,702,205
• PEG Ratio: -0.79
• Price to Book (P/B): 7.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.13
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 8.18
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $161.67
• Price Target Upside: -5.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $181.00 ▲(5.71%Upside)

The Hershey Company's strong financial performance is a key factor in its overall score, supported by a stable valuation and reasonable technical indicators. While the earnings call highlighted significant near-term challenges, the company's strategic optimism and new leadership provide potential for long-term growth.

Positive Factors

Leadership and Management

HSY brings a seasoned executive as its next CEO, a positive for clarity on leadership succession.

Potential for Improvement

Better elasticities evident in recent scanner data, an increasing likelihood of tariff relief, and moderating/stable cocoa futures suggest potential for improved visibility to an inflection in fundamentals in the coming quarters.

Negative Factors

Leadership and Management Challenges

Questions will likely focus on Mr. Tanner’s ability to execute in the new role given the need to adjust to less resources at HSY vs PEP and importance in adapting to HSY’s culture.

Market Skepticism

The market may be more skeptical about Mr. Tanner's track record of driving improved profit growth due to industry tailwinds from significant pricing power.

The Hershey Company Business Overview & Revenue Model

Company Description

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

How the Company Makes Money

The Hershey Company primarily generates revenue through the sale of its confectionery products, which are distributed through a variety of channels including retail stores, online platforms, and wholesale distributors. Key revenue streams for Hershey include sales from its flagship chocolate brands like Hershey's, Reese's, and Kit Kat, as well as its non-chocolate products such as Twizzlers and Ice Breakers. The company leverages a strong brand portfolio and extensive distribution network to maintain a significant market presence in North America and internationally. Hershey also benefits from partnerships and licensing agreements that expand its brand reach and product offerings. Seasonal and holiday-related products contribute significantly to its earnings, with spikes in sales during periods like Halloween, Christmas, and Easter. Additionally, strategic acquisitions and innovations in product lines support Hershey's growth and revenue diversification.

The Hershey Company Financial Statement Overview

Summary

The Hershey Company demonstrates strong profitability with high gross and net profit margins and efficient cash flow management. Although revenue growth has recently declined slightly, the company's financial health remains fundamentally sound with a stable balance sheet.

Income Statement

The Hershey Company demonstrates strong profitability with consistently high gross and net profit margins. Despite a slight dip in total revenue from the previous year, the company maintains solid EBIT and EBITDA margins, reflecting strong operational efficiency. Revenue growth has been robust over the years, although it showed a minor decline recently.

Balance Sheet

The company exhibits a stable financial structure with a reasonable debt-to-equity ratio, indicating manageable leverage. The return on equity is commendable, reflecting efficient use of shareholder funds. The equity ratio indicates a well-capitalized balance sheet, though there is room for improvement in reducing debt levels.

Cash Flow

Hershey's cash flow management is strong, with robust operating cash flows and healthy free cash flow. The operating cash flow to net income ratio signifies effective cash conversion. However, there has been a slight decline in free cash flow growth recently, which warrants attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.20B	11.16B	10.42B	8.97B	8.15B
Gross Profit	5.30B	5.00B	4.50B	4.05B	3.70B
EBITDA	3.10B	2.75B	2.38B	2.20B	1.90B
Net Income	2.22B	1.86B	1.64B	1.48B	1.28B
Balance Sheet
Total Assets	12.95B	11.90B	10.95B	10.41B	9.13B
Cash, Cash Equivalents and Short-Term Investments	730.75M	401.90M	463.89M	329.27M	1.14B
Total Debt	5.45B	5.13B	5.08B	5.34B	4.78B
Total Liabilities	8.23B	7.80B	7.65B	7.66B	6.89B
Stockholders Equity	4.71B	4.10B	3.30B	2.76B	2.24B
Cash Flow
Free Cash Flow	1.93B	1.55B	1.81B	1.59B	1.26B
Operating Cash Flow	2.53B	2.32B	2.33B	2.08B	1.70B
Investing Cash Flow	-960.31M	-1.20B	-787.38M	-2.22B	-531.28M
Financing Cash Flow	-1.30B	-1.15B	-1.42B	-681.14M	-499.23M

The Hershey Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 171.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSY, the sentiment is Positive. The current price of 171.23 is above the 20-day moving average (MA) of 169.17, above the 50-day MA of 165.40, and above the 200-day MA of 167.59, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 35.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSY.

The Hershey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TR	77 Outperform	$3.01B	28.65	10.39%	0.99%	-5.52%	-5.01%
HSY	73 Outperform	$33.01B	20.09	37.48%	3.33%	-5.91%	-19.78%
MDLZ	72 Outperform	$86.42B	24.80	13.27%	2.82%	0.90%	-14.60%
CAG	67 Neutral	$9.07B	7.91	13.27%	7.35%	-3.15%	-65.38%
Sector *	65 Neutral	$26.91B	15.42	-4.18%	3.21%	1.01%	1.34%
SJM	53 Neutral	$11.13B	22.22	-17.87%	4.14%	6.69%	-261.87%
RMCF	50 Neutral	$14.88M	―	-60.80%	―	5.81%	19.66%

The Hershey Company Corporate Events

The Hershey Company Appoints New CEO Kirk Tanner

On July 6, 2025, The Hershey Company announced the appointment of Kirk Tanner as its new President and CEO, effective August 18, 2025, succeeding Michele Buck who will retire but continue as a special advisor until June 2026. Tanner, with extensive experience from PepsiCo and Wendy’s, is expected to drive Hershey’s growth and innovation, leveraging his expertise in global brand management and operational excellence to further the company’s ambition of being a leading snacking powerhouse.

The most recent analyst rating on (HSY) stock is a Hold with a $204.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

Hershey Company Holds Annual Stockholders Meeting

On May 6, 2025, The Hershey Company held its Annual Meeting of Stockholders via webcast, during which several key proposals were voted on. The election of directors saw several individuals elected, while Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025. Additionally, the compensation of named executive officers was approved on a non-binding advisory basis, and an amended and restated certificate of incorporation was voted for.

Hershey’s Annual Meeting to Review Business Update

On May 6, 2025, The Hershey Company will conduct its Annual Meeting of Stockholders via a live webcast to provide a business review update. This event is significant for stakeholders as it offers insights into the company’s operations and strategic direction, although the presentation materials are not subject to certain regulatory liabilities.