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The Hershey Company
(NYSE:HSY)
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Rating:66Neutral
Price Target:
$190.00
â–¼(-1.37% Downside)
Action:Reiterated
Date:06/10/26
HSY scores as above-average primarily on resilient fundamentals (notably strong free cash flow) and a constructive earnings outlook calling for margin improvement starting in Q2. The score is held back by clearly weak technicals (below key moving averages with negative MACD) and a relatively high P/E that makes near-term upside more dependent on delivering the guided margin recovery.
Positive Factors
Strong free cash flow
Robust operating and free cash flow (FCF ~2.28B, FCF ~97% of net income) provides durable financial flexibility to fund marketing, innovation, dividends and buybacks, while supporting deleveraging and capex for supply‑chain automation without relying on external financing.
Negative Factors
Elevated leverage
Debt-to-equity near 1.13x, while improved, leaves less financial flexibility for incremental M&A, larger buybacks or to fully absorb commodity and logistics shocks; higher leverage increases sensitivity to interest cost moves and constrains strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Robust operating and free cash flow (FCF ~2.28B, FCF ~97% of net income) provides durable financial flexibility to fund marketing, innovation, dividends and buybacks, while supporting deleveraging and capex for supply‑chain automation without relying on external financing.
Read all positive factors
The Hershey Company Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where The Hershey Company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where The Hershey Company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyThe Hershey Company (HSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.38B
Dividend Yield3%
Average Volume (3M)2.20M
Price to Earnings (P/E)31.3
Beta (1Y)-0.10
Revenue Growth11.50%
EPS Growth-33.67%
CountryUS
Employees18,540
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)5.48
Shares Outstanding148,229,860
10 Day Avg. Volume1,909,274
30 Day Avg. Volume2,204,294
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)7.99
Price to Sales (P/S)3.17
P/FCF Ratio21.17
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.34
Enterprise Value/Gross Profit9.61
Enterprise Value/Ebitda18.45
Forecast
1Y Price Target
$211.79Price Target Upside9.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)8.43
Revenue Forecast (FY)$12.25B
The Hershey Company Business Overview & Revenue Model
Company Description
The Hershey Company, operating with its various subsidiaries, serves as a key manufacturer and distributor of both sweet confections and general household pantry items. Its market reach extends across the United States and globally. The enterprise...
How the Company Makes Money
Hershey makes money primarily by selling branded packaged foods—mainly confectionery and snacks—to retailers and other distributors at wholesale prices, with revenue recognized from product shipments/sales into these channels. Its largest revenue ...
The Hershey Company Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying strength: strong branded growth (Hershey and Reese's), resilient confection demand, favorable elasticities, a clear margin inflection starting in Q2, and numerous product and seasonal initiatives that support H2 momentum. Near-term headwinds are largely timing-related (Q2 organic dip), some discrete snacks execution costs, competitive intensity in CMG, and macro uncertainties (SNAP, GLP-1, potential commodity or oil-driven cost pressure). Management maintained full-year guidance and emphasized that most negatives are manageable or temporary while positives are broad-based.Positive Updates
Strong Easter Sell-Through and Confection Resilience
Easter sell-through exceeded expectations; overall confection category grew in the high single-digits year-over-year and Hershey exited spring resets in a net positive position across items and key channels.
Negative Updates
Near-Term Organic Sales Timing Pressures (Q2)
Headline organic sales are expected to be slightly down in Q2 due to timing effects: pull-forward of spring program shipments (including smores), stronger Easter sell-through, and some international customer pull-forward—management described Q2 weakness as timing-driven rather than structural.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Easter Sell-Through and Confection Resilience
Easter sell-through exceeded expectations; overall confection category grew in the high single-digits year-over-year and Hershey exited spring resets in a net positive position across items and key channels.
Read all positive updates
Company Guidance
Hershey said it is maintaining its full‑year outlook, noting Q1 strength but expecting a slight organic sales decline in Q2 driven by timing (Easter pull‑forward and some international shipment timing); Q1 results included confection/category up high‑single‑digits, Snacks up ~5%, salty core brands up nearly 10%, and nonseasonal Hershey and Reese’s growth of ~11% and ~10% respectively, with Easter sell‑through and share ahead of expectations. Management sees a margin inflection starting in Q2—gross margin improvement of nearly 300 basis points year‑over‑year in Q2 with further acceleration in the back half—and said Snacks operating income should resume double‑digit growth after Q1’s one‑time costs; marketing/SM&A (working media) is expected to increase double‑digits for the year. They emphasized confidence in H2 momentum from tentpoles (targeting roughly +1.0 percentage point of growth), innovation and spring resets, noted price elasticity is running favorable versus prior conservative modeling (previously planning around ~0.8%), and reiterated a preliminary 2027 organic sales target of 2%–4% while monitoring macro risks (oil, SNAP, GLP‑1 adoption) and commodity/hedging dynamics.The Hershey Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.99B | 11.69B | 11.20B | 11.16B | 10.42B | 8.97B |
| Gross Profit | 4.17B | 3.89B | 5.30B | 5.00B | 4.50B | 4.05B |
| EBITDA | 2.17B | 1.95B | 3.10B | 2.75B | 2.44B | 2.24B |
| Net Income | 1.09B | 883.26M | 2.22B | 1.86B | 1.64B | 1.48B |
Balance Sheet | ||||||
| Total Assets | 13.84B | 13.74B | 12.95B | 11.90B | 10.95B | 10.41B |
| Cash, Cash Equivalents and Short-Term Investments | 876.98M | 925.86M | 730.75M | 401.90M | 463.89M | 329.27M |
| Total Debt | 5.36B | 5.40B | 5.45B | 5.13B | 5.12B | 5.38B |
| Total Liabilities | 9.11B | 9.10B | 8.23B | 7.80B | 7.65B | 7.66B |
| Stockholders Equity | 4.73B | 4.64B | 4.71B | 4.10B | 3.30B | 2.76B |
Cash Flow | ||||||
| Free Cash Flow | 2.17B | 1.75B | 1.93B | 1.55B | 1.81B | 1.59B |
| Operating Cash Flow | 2.35B | 2.28B | 2.53B | 2.32B | 2.33B | 2.08B |
| Investing Cash Flow | -1.25B | -1.28B | -960.31M | -1.20B | -787.38M | -2.22B |
| Financing Cash Flow | -1.74B | -803.36M | -1.30B | -1.15B | -1.42B | -681.14M |
The Hershey Company Technical Analysis
Negative
192.63
Price Trends
183.55
Negative
197.20
Negative
191.07
Negative
Market Momentum
-2.62
Positive
40.35
Neutral
9.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSY, the sentiment is Negative. The current price of 192.63 is above the 20-day moving average (MA) of 177.85, above the 50-day MA of 183.55, and above the 200-day MA of 191.07, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 9.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSY.
The Hershey Company Risk Analysis
The Hershey Company disclosed 15 risk factors in its most recent earnings report. The Hershey Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Hershey Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.92B | 27.96 | 10.77% | 0.95% | 2.38% | 12.62% | |
66 Neutral | $35.38B | 31.32 | 23.72% | 3.00% | 11.50% | -33.67% | |
63 Neutral | $76.35B | 28.86 | 10.04% | 3.53% | 7.79% | -25.10% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $12.00B | -85.28 | -2.44% | 4.45% | 3.72% | 88.76% | |
61 Neutral | $19.39B | -210.88 | 23.70% | 5.19% | -5.45% | -104.44% | |
53 Neutral | $29.55B | -5.10 | -13.85% | 6.75% | -1.75% | -319.68% |
* Consumer Defensive Sector Average
HSY
The Hershey Company
171.65
11.80
7.38%
GIS
General Mills
35.85
-13.34
-27.12%
SJM
JM Smucker
110.87
10.41
10.36%
TR
Tootsie Roll
38.03
4.66
13.97%
MDLZ
Mondelez International
58.30
-6.59
-10.16%
KHC
Kraft Heinz
24.68
-0.13
-0.50%
The Hershey Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Hershey Adds Digital Transformation Leader to Board
Positive
Jun 9, 2026
On June 3, 2026, The Hershey Company’s board of directors appointed Joe Park, a veteran technology and digital transformation executive, to join the board effective June 29, 2026, and to serve on its Audit and Finance and Risk Management Com...
Business Operations and StrategyExecutive/Board Changes
Hershey Announces New Chief Supply Chain Leadership Transition
Positive
May 28, 2026
On May 28, 2026, The Hershey Company announced that longtime executive Jason Reiman will retire in the second quarter of 2027 after a 30-year career, stepping down as chief supply chain officer on June 22, 2026, and transitioning to a supply chain...
Executive/Board ChangesShareholder Meetings
Hershey Shareholders Approve Directors, Auditor and Executive Pay
Positive
May 8, 2026
On May 5, 2026, The Hershey Company held its 2026 Annual Meeting of Stockholders via live webcast, where shareholders elected a full slate of directors, including both common and Class B representatives, for the coming term. The strong vote totals...
Business Operations and StrategyExecutive/Board Changes
Hershey Announces Upcoming Change in U.S. Leadership
Neutral
Apr 14, 2026
The Hershey Company announced that Andrew Archambault, its President, U.S., will depart the company effective May 1, 2026. Hershey has initiated a search for his successor, signaling an upcoming leadership transition in its core U.S. business oper...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Hershey Unveils One Hershey Strategy at 2026 Investor Day
Positive
Mar 31, 2026
On March 31, 2026, The Hershey Company hosted its 2026 Investor Day at the New York Stock Exchange, where executives detailed a strategy to “Lead Next Generation Snacking” through an integrated “One Hershey” commercial mode...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.