The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $36.36B
• Dividend Yield: 3.02%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.04
• Revenue Growth: 2.55%
• EPS Growth: -16.52%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 1.21
• Shares Outstanding: 148,110,720
• 10 Day Avg. Volume: 1,536,743
• 30 Day Avg. Volume: 1,485,389
• 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: 1.07
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 8.61
• Enterprise Value/Ebitda: 16.32
• 1Y Price Target: $194.36
• Price Target Upside: 7.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $210.00 ▲(15.73% Upside)

The Hershey Company demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. Technical analysis indicates potential short-term weakness, while valuation suggests the stock may be slightly overvalued. Overall, the company's strategic initiatives and robust cash flows support a favorable outlook, despite challenges from cocoa prices and tariffs.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Hershey's ability to maintain market presence and expand its product offerings, ensuring long-term business stability.

Margin Expansion

The planned margin expansion through pricing and operational efficiencies will enhance profitability, supporting sustainable growth and competitive positioning.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investments in innovation and expansion, ensuring long-term resilience and shareholder value.

Negative Factors

Rising Debt Levels

Increasing debt levels, if not managed carefully, could strain financial resources and limit strategic opportunities, impacting long-term financial health.

Cocoa Prices and Tariffs

Sustained high cocoa prices and tariffs pose a risk to cost structures, potentially affecting margins and profitability if not mitigated effectively.

Pressure in Take-home Chocolate Segment

Increased competition in the take-home chocolate segment could erode market share and impact revenue growth, necessitating strategic adjustments to remain competitive.

The Hershey Company Business Overview & Revenue Model

Company Description

The Hershey Company (HSY) is a leading American confectionery manufacturer known for its iconic chocolate products and snacks. Founded in 1894 and headquartered in Hershey, Pennsylvania, the company operates in the global chocolate and non-chocolate confectionery sectors. Hershey's core product offerings include a wide range of chocolate bars, candies, and snacks, with well-known brands such as Hershey's, Reese's, Kit Kat, and Dove. In addition to its core chocolate products, Hershey also produces a variety of non-chocolate confectionery items and snack foods, catering to diverse consumer preferences across various markets.

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: Neutral
• Last Price: 181.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSY, the sentiment is Neutral. The current price of 181.45 is below the 20-day moving average (MA) of 188.68, below the 50-day MA of 186.76, and above the 200-day MA of 170.44, indicating a neutral trend. The MACD of -1.59 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HSY.

The Hershey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	―	$36.36B	23.84	35.89%	3.02%	2.55%	-16.52%
MDLZ	―	$78.63B	22.19	13.51%	3.10%	3.14%	-5.80%
CAG	―	$8.75B	10.31	9.65%	7.57%	-4.11%	72.17%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TR	―	$3.13B	30.15	10.49%	0.95%	-3.75%	-3.91%
SJM	―	$10.90B	―	-21.32%	4.25%	2.54%	-293.39%
RMCF	―	$14.31M	-2.85	-56.79%	―	8.09%	17.25%

The Hershey Company Corporate Events

Hershey Enters New $1.875 Billion Credit Agreement

On October 21, 2025, The Hershey Company entered into a new five-year credit agreement with several financial institutions, allowing it to borrow up to $1.875 billion, with an option to increase by $1 billion. This new agreement replaces a previous credit facility established in April 2023, which allowed for borrowing up to $1.35 billion. The updated credit agreement is expected to enhance Hershey’s financial flexibility for general corporate purposes.

The most recent analyst rating on (HSY) stock is a Hold with a $189.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

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.

The most recent analyst rating on (HSY) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

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.

The most recent analyst rating on (HSY) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

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 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 Reports Strong Q2 2025 Sales Growth

The Hershey Company, a leading player in the confectionery and salty snacks industry, is renowned for its iconic chocolate products and innovative snacking solutions. The company operates primarily in the North American market, with a growing international presence.

Hershey’s Earnings Call: Innovation Amid Challenges

The Hershey Company’s recent earnings call presented a cautiously optimistic outlook, with a balanced sentiment reflecting both significant achievements and ongoing challenges. The company highlighted its innovation and pricing strategy as key strengths, while also expressing hope for potential tariff relief. However, challenges such as cocoa inflation, tariffs, and a high tax rate were acknowledged as notable risks that temper the overall positive sentiment.