The Hershey Company (HSY)
NYSE:HSY
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The Hershey Company
(NYSE:HSY)
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Rating:63Neutral
Price Target:
$198.00
â–²(2.79% Upside)
Action:ReiteratedDate:05/01/26
HSY’s score is driven primarily by solid underlying financial quality (strong cash generation) and constructive earnings-call messaging around a Q2-to-H2 margin inflection and resilient core brand demand. These positives are offset by weak current technicals (broad downtrend/negative momentum) and a valuation headwind from a high P/E despite a ~3% dividend yield.
Positive Factors
Strong free cash flow generation
Hershey's FCF of roughly $2.28B (TTM) and FCF that tracks ~97% of net income indicate exceptional cash conversion and earnings quality. This durable cash generation funds capex, marketing, dividends and debt paydown, enabling reinvestment in innovation and balance sheet repair over cycles.
Negative Factors
Elevated leverage vs best-in-class peers
A debt-to-equity near 1.13x, while improved, leaves the company more leveraged than top-tier consumer staples peers. That elevated leverage narrows strategic flexibility, raises interest exposure and can constrain M&A or large share-return programs during downturns, limiting optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Hershey's FCF of roughly $2.28B (TTM) and FCF that tracks ~97% of net income indicate exceptional cash conversion and earnings quality. This durable cash generation funds capex, marketing, dividends and debt paydown, enabling reinvestment in innovation and balance sheet repair over cycles.
Read all positive factors
The Hershey Company (HSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.78B
Dividend Yield3%
Average Volume (3M)1.85M
Price to Earnings (P/E)24.4
Beta (1Y)-0.13
Revenue Growth11.50%
EPS Growth-33.67%
CountryUS
Employees18,540
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)5.48
Shares Outstanding148,077,440
10 Day Avg. Volume1,993,442
30 Day Avg. Volume1,852,009
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)7.99
Price to Sales (P/S)3.17
P/FCF Ratio21.17
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.52
Enterprise Value/Gross Profit10.14
Enterprise Value/Ebitda20.76
Forecast
1Y Price Target
$218.47Price Target Upside13.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)8.43
Revenue Forecast (FY)$12.26B
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,...
How the Company Makes Money
Hershey makes money primarily by selling packaged branded confectionery and snack products to retailers and distributors, recognizing revenue when products are delivered (subject to customer terms) and net of trade promotions, discounts, and retur...
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 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 | 2.04B | 1.45B | 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
216.98
Negative
201.87
Negative
190.36
Positive
Market Momentum
-5.97
Positive
31.45
Neutral
5.94
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 below the 20-day moving average (MA) of 206.02, below the 50-day MA of 216.98, and above the 200-day MA of 190.36, indicating a neutral trend. The MACD of -5.97 indicates Positive momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 5.94 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.07B | 23.19 | 11.02% | 0.95% | 1.29% | 16.13% | |
63 Neutral | $37.78B | 24.38 | 19.20% | 3.00% | 11.50% | -33.67% | |
63 Neutral | $79.42B | 32.93 | 10.05% | 3.53% | 7.79% | -25.10% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $18.72B | 20.26 | 23.70% | 5.19% | -6.48% | -10.99% | |
61 Neutral | $10.33B | -3.86 | -21.55% | 4.45% | 1.58% | -389.82% | |
60 Neutral | $27.36B | 8.20 | -13.44% | 6.75% | -3.50% | -316.94% |
* Consumer Defensive Sector Average
HSY
The Hershey Company
186.41
22.77
13.91%
GIS
General Mills
35.07
-16.45
-31.93%
SJM
JM Smucker
96.83
-11.08
-10.27%
TR
Tootsie Roll
41.84
10.08
31.73%
MDLZ
Mondelez International
61.87
-3.14
-4.84%
KHC
Kraft Heinz
23.07
-3.47
-13.06%
The Hershey Company Corporate Events
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.