The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $37.18B
• Dividend Yield: 3.02%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.06
• Revenue Growth: 2.55%
• EPS Growth: -16.52%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Food Confectioners
• EPS (TTM): 1.21
• Shares Outstanding: 148,110,720
• 10 Day Avg. Volume: 1,262,030
• 30 Day Avg. Volume: 1,727,155
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 8.61
• Enterprise Value/Ebitda: 16.32
• 1Y Price Target: $187.56
• Price Target Upside: 3.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 78 Outperform
• Price Target: $203.00 ▲(11.75% Upside)

Hershey's overall stock score of 78 reflects its strong financial performance, positive earnings call sentiment, and reasonable valuation. The company's strategic initiatives and innovation efforts are promising, though challenges such as high cocoa prices and tariffs pose risks. The technical analysis indicates a stable trend, supporting the stock's potential for moderate growth.

Positive Factors

Leadership Succession

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

Price Increases

A 16% price increase across the confectionery portfolio has been announced, potentially boosting revenue.

Sales Growth

2Q sales growth of 26% and 1H growth of +1.7% exceeded management's expectations, fueled by market share expansion.

Negative Factors

Cocoa Inflation

Cocoa inflation is anticipated to continue being a headwind in 2026, with expected double-digit inflation.

GLP-1 Drugs Impact

GLP-1 drugs are having a disproportionately negative impact on certain food categories including indulgent snacks, which could intensify as pill versions materialize.

SNAP Benefit Changes

Five states have eliminated candy from SNAP benefit spending in 2026, which could impact sales.

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's revenue model is primarily driven by the sales of its confectionery products, which include both chocolate and non-chocolate items. Key revenue streams come from retail sales through supermarkets, convenience stores, and online platforms. Hershey also benefits from partnerships with various retailers and distributors, which enhance its market reach. Additionally, the company invests in advertising and promotional campaigns to drive brand awareness and consumer engagement. Seasonal promotions, particularly around holidays like Halloween and Valentine's Day, further boost sales. Hershey's international expansion and product innovation, such as introducing new flavors and healthier snack options, contribute to its overall earnings.

The Hershey Company Financial Statement Overview

Summary

The Hershey Company maintains a strong financial profile with consistent revenue growth and healthy profitability margins. The balance sheet is stable, albeit with increasing leverage that warrants monitoring. Cash flows are solid, underpinned by strong operational cash generation. While the company's financial health is sound, careful attention to debt levels and cash flow trends will be crucial for sustaining long-term growth.

Income Statement

The Hershey Company demonstrated a strong income performance with a consistent increase in total revenue over the years, reaching $11.3 billion TTM. The gross profit margin remains robust at approximately 40.1% TTM. However, the net profit margin has slightly declined to 13.5% TTM from 19.8% in 2024. Revenue growth has been consistent, though slower at 0.8% from the previous year, indicating stable but moderate growth. EBIT and EBITDA margins are healthy at 18.7% and 21.2% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.18, indicating manageable leverage. The equity ratio is at 33.1%, providing a decent buffer against liabilities. Return on Equity (ROE) is strong at 33.9% TTM, signifying effective equity utilization. However, the increase in total debt over the years poses a potential risk if not managed carefully.

Cash Flow

Hershey's cash flow statement indicates robust cash generation with an operating cash flow to net income ratio of 1.40 TTM, suggesting strong cash flow relative to profits. The free cash flow to net income ratio is also strong at 1.23 TTM. However, free cash flow has slightly decreased by 2.2% from the previous year, which could impact future investments if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.30B	11.20B	11.16B	10.42B	8.97B	8.15B
Gross Profit	4.53B	5.30B	5.00B	4.50B	4.05B	3.70B
EBITDA	2.39B	3.10B	2.75B	2.44B	2.24B	1.94B
Net Income	1.53B	2.22B	1.86B	1.64B	1.48B	1.28B
Balance Sheet
Total Assets	13.65B	12.95B	11.90B	10.95B	10.41B	9.13B
Cash, Cash Equivalents and Short-Term Investments	912.35M	730.75M	401.90M	463.89M	329.27M	1.14B
Total Debt	6.00B	5.45B	5.13B	5.12B	5.38B	4.82B
Total Liabilities	9.13B	8.23B	7.80B	7.65B	7.66B	6.89B
Stockholders Equity	4.51B	4.71B	4.10B	3.30B	2.76B	2.23B
Cash Flow
Free Cash Flow	1.58B	1.93B	1.55B	1.81B	1.59B	1.26B
Operating Cash Flow	2.15B	2.53B	2.32B	2.33B	2.08B	1.70B
Investing Cash Flow	-872.36M	-960.31M	-1.20B	-787.38M	-2.22B	-531.28M
Financing Cash Flow	-866.12M	-1.30B	-1.15B	-1.42B	-681.14M	-499.23M

The Hershey Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.66
• 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 181.66 is below the 20-day moving average (MA) of 181.85, above the 50-day MA of 175.87, and above the 200-day MA of 166.72, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 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
HSY	78 Outperform	$37.18B	24.01	35.89%	3.02%	2.55%	-16.52%
TR	76 Outperform	$3.25B	32.30	10.49%	0.66%	-3.75%	-3.91%
CAG	72 Outperform	$8.97B	7.98	13.27%	7.31%	-3.64%	231.77%
MDLZ	67 Neutral	$80.29B	22.63	13.51%	3.04%	3.14%	-5.80%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
SJM	52 Neutral	$11.80B	22.22	-21.32%	4.11%	2.54%	-293.39%
RMCF	43 Neutral	$11.54M	―	-60.80%	―	5.81%	19.66%

The Hershey Company Corporate Events

Hershey Board Member Juan R. Perez Announces Retirement

On August 21, 2025, Juan R. Perez announced his retirement from The Hershey Company‘s Board of Directors and its associated committees, effective October 3, 2025. His decision to retire was not due to any disagreements with the company’s operations or policies, indicating a smooth transition for the board and no immediate impact on the company’s strategic direction.

Huong Maria T. Kraus Appointed Hershey’s New Chairman

Following the retirement of Michele G. Buck, Huong Maria T. Kraus has been appointed as the new Chairman of the Board of The Hershey Company, effective August 18, 2025. Ms. Kraus, who joined the Board in May 2023 and has extensive experience in governance and finance, also holds leadership roles at Hershey Trust Company and Milton Hershey School, indicating a strong continuity in strategic oversight for the company.

Hershey Appoints Chris Brandt to Board of Directors

On July 30, 2025, The Hershey Company announced the appointment of Chris Brandt to its Board of Directors, effective August 11, 2025. Brandt, with over 25 years of marketing experience in the food and beverage industry, currently serves as President and Chief Brand Officer of Chipotle Mexican Grill. His extensive background in marketing and brand management is expected to enhance Hershey’s strategic initiatives in these areas.

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.