The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $36.97B
• Dividend Yield: 3.03%
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 27.3
• Beta (1Y): -0.04
• Revenue Growth: 4.71%
• EPS Growth: -23.03%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 1.30
• Shares Outstanding: 148,171,620
• 10 Day Avg. Volume: 1,250,751
• 30 Day Avg. Volume: 1,828,229
• PEG Ratio: 0.75
• Price to Book (P/B): 7.29
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 17.85
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 9.96
• Enterprise Value/Ebitda: 18.93
• 1Y Price Target: $189.33
• Price Target Upside: 3.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $211.00 ▲(15.74% Upside)

Hershey's overall stock score reflects strong financial health and positive technical indicators, which are the most significant factors. The valuation is somewhat high, and mixed earnings call sentiment introduces caution. Despite challenges, the company's strategic focus on innovation and market positioning supports its potential for future growth.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective execution, supporting long-term growth prospects.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling strategic investments and shareholder returns.

Innovation and Brand Investment

Ongoing innovation and brand investments strengthen competitive positioning and drive sustainable revenue growth.

Negative Factors

Profitability Margins Decline

Declining margins may pressure profitability, requiring effective cost management and pricing strategies to sustain earnings.

Impact of Cocoa and Tariffs

Rising cocoa costs and tariffs could impact cost structure and margins, necessitating strategic sourcing and pricing adjustments.

Pressure in Take-home Chocolate Segment

Increased competition in the chocolate segment may erode market share, requiring innovation and differentiation to maintain leadership.

The Hershey Company Business Overview & Revenue Model

Company Description

The Hershey Company (HSY) is a leading American confectionery manufacturer known for its wide range of chocolate and non-chocolate products. Founded in 1894 and headquartered in Hershey, Pennsylvania, the company operates primarily in the snacks and confections sector. Hershey's core products include iconic chocolate bars, such as Hershey's Milk Chocolate, Reese's Peanut Butter Cups, and Kit Kat, as well as a variety of non-chocolate snacks and seasonal products. The company has a strong presence in both the domestic and international markets, continually innovating to meet consumer demands.

How the Company Makes Money

The Hershey Company generates revenue primarily through the sale of its confectionery products, which are distributed through various channels, including grocery stores, convenience stores, and vending machines. Key revenue streams include sales from chocolate bars, candies, and related snacks. Hershey's strategic partnerships with retailers and distributors enhance its market reach and ensure consistent product availability. Additionally, the company invests in marketing and advertising to strengthen brand loyalty, driving consumer demand for its products. Seasonal product offerings, such as Halloween and Christmas-themed candies, also contribute significantly to sales during peak times.

The Hershey Company Financial Statement Overview

Summary

The Hershey Company demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have declined, the company has improved its leverage position. Overall, Hershey maintains a stable financial position with potential for future growth.

Income Statement

The Hershey Company shows consistent revenue growth, with a TTM growth rate of 1.72%. However, there is a noticeable decline in profitability margins, with the TTM gross profit margin at 37.74% compared to 47.32% in 2024. Net profit margin also decreased to 11.84% from 19.83% in 2024. Despite these declines, the company maintains a solid revenue base and profitability, indicating stable operations.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.07 in the TTM period, down from 1.16 in 2024, indicating better leverage management. However, the return on equity has decreased to 29.44% from 47.11% in 2024, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Hershey's cash flow performance is strong, with a significant free cash flow growth rate of 36.66% in the TTM period. The operating cash flow to net income ratio is healthy at 0.66, and the free cash flow to net income ratio is 0.74, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.49B	11.20B	11.16B	10.42B	8.97B	8.15B
Gross Profit	4.30B	5.30B	5.00B	4.50B	4.05B	3.70B
EBITDA	2.26B	3.10B	2.75B	2.44B	2.24B	1.94B
Net Income	1.36B	2.22B	1.86B	1.64B	1.48B	1.28B
Balance Sheet
Total Assets	13.58B	12.95B	11.90B	10.95B	10.41B	9.13B
Cash, Cash Equivalents and Short-Term Investments	1.16B	730.75M	401.90M	463.89M	329.27M	1.14B
Total Debt	5.74B	5.45B	5.13B	5.12B	5.38B	4.82B
Total Liabilities	9.01B	8.23B	7.80B	7.65B	7.66B	6.89B
Stockholders Equity	4.56B	4.71B	4.10B	3.30B	2.76B	2.23B
Cash Flow
Free Cash Flow	2.16B	1.93B	1.55B	1.81B	1.59B	1.26B
Operating Cash Flow	2.29B	2.53B	2.32B	2.33B	2.08B	1.70B
Investing Cash Flow	-793.17M	-960.31M	-1.20B	-787.38M	-2.22B	-531.28M
Financing Cash Flow	-985.97M	-1.30B	-1.15B	-1.42B	-681.14M	-499.23M

The Hershey Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 182.3 is above the 20-day moving average (MA) of 181.66, below the 50-day MA of 182.47, and above the 200-day MA of 174.33, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 24.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSY.

The Hershey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	76 Outperform	$36.97B	27.27	31.01%	3.03%	4.71%	-23.03%
TR	66 Neutral	$2.66B	29.26	10.48%	0.95%	0.34%	0.85%
GIS	63 Neutral	$24.50B	8.70	30.98%	5.27%	-3.26%	25.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MDLZ	62 Neutral	$70.85B	20.51	13.07%	3.49%	4.13%	-5.19%
SJM	49 Neutral	$10.68B	―	-17.44%	4.33%	-0.66%	-326.55%
KHC	49 Neutral	$28.81B	―	-9.73%	6.57%	-3.70%	-431.05%

The Hershey Company Corporate Events

Hershey Updates By-laws to Enhance Governance

On December 5, 2025, The Hershey Company amended its By-laws to enhance corporate governance. The amendments, effective immediately, remove the provision allowing Michele Buck to hold the Chairman position, eliminate references to the Lead Independent Director, and clarify the roles of the Governance Committee Chair and Vice Chairman during emergencies or the CEO’s unavailability.

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.