The Hershey Company (HSY)
NYSE:HSY
Top Page
The Hershey Company
(NYSE:HSY)
Select Model
Select Model
Rating:62Neutral
Price Target:
$226.00
▲(14.33% Upside)
Action:ReiteratedDate:04/01/26
HSY scores as moderately attractive: strong cash generation and management’s guided margin/earnings recovery support the outlook, but the 2025 margin and earnings reset is a significant fundamental headwind. The stock also carries a high valuation (P/E ~41.9) and near-term technical momentum is weak, limiting upside confidence despite the supportive dividend.
Positive Factors
Strong cash generation and FCF
Consistent, material operating and free cash flow (~$2.28B in 2025) underpins durable financial flexibility. Strong cash conversion supports reinvestment in brands and supply chain, funds dividends and debt reduction, and cushions the company through profit volatility without immediate reliance on external financing.
Negative Factors
Sharp margin and earnings reset
A large, recent contraction in gross and net margins signals structural profitability pressure. Restoring margins requires sustained price/mix execution and cost leverage; failure to fully recapture prior margins would permanently depress return metrics, cashflow and the firm’s ability to fund growth and capital allocation plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF
Consistent, material operating and free cash flow (~$2.28B in 2025) underpins durable financial flexibility. Strong cash conversion supports reinvestment in brands and supply chain, funds dividends and debt reduction, and cushions the company through profit volatility without immediate reliance on external financing.
Read all positive factors
The Hershey Company (HSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.05B
Dividend Yield3%
Average Volume (3M)1.67M
Price to Earnings (P/E)41.9
Beta (1Y)-0.05
Revenue Growth4.71%
EPS Growth-23.03%
CountryUS
Employees18,540
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)1.71
Shares Outstanding148,077,440
10 Day Avg. Volume1,593,773
30 Day Avg. Volume1,668,920
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 Cap1.08
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit11.15
Enterprise Value/Ebitda24.70
Forecast
1Y Price Target
$229.78Price Target Upside16.24% Upside
Rating ConsensusHold
Number of Analyst Covering19
EPS Forecast (FY)8.4
Revenue Forecast (FY)$12.25B
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:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
Overall, the call balanced acknowledgment of persistent macro and category-level risks (cocoa, tariffs, SNAP waiver uncertainty, international elasticity) with several clear operational positives: strong salty/snacks momentum (18% growth in Q4 with double-digit volume growth), disciplined hedging/visibility for 2026, a planned top-line growth target of 4%–5%, a multiyear brand and R&D investment program, and guidance for meaningful margin and earnings recovery (management cited a multi-hundred basis point gross margin improvement and double-digit EPS momentum later in the year). Management reiterated flexibility and contingency plans, and highlighted concrete in-quarter upside (tariff savings, volume leverage). On balance, the upside drivers and execution updates communicated on the call outweigh the near-term headwinds, while still leaving watch points around commodity dynamics and policy-driven demand shifts.Positive Updates
2026 Top-Line Guidance
Management guided to 4%–5% net sales growth for FY2026, signaling confidence in top-line momentum across the portfolio.
Negative Updates
Cocoa Cost Pressure and Hedging Limitations
Cocoa remains a headwind: pricing taken in 2025 does not fully cover cocoa cost inflation in 2026; management noted cocoa for 2026 is 'up just a little' versus 2025 and that hedges are above current spot, limiting near-term benefit if prices decline further.
Read all updates
Q4-2025 Updates
Positive
Negative
2026 Top-Line Guidance
Management guided to 4%–5% net sales growth for FY2026, signaling confidence in top-line momentum across the portfolio.
Read all positive updates
Company Guidance
Management guided to 2026 net sales growth of 4–5% and a “meaningful earnings recovery,” noting double‑digit EPS growth in the back half; they plan roughly 10% pricing companywide, assume price elasticity around 0.8, and will increase A&C/advertising double‑digits while raising R&D and brand investments. They expect about a 400‑basis‑point full‑year gross‑margin improvement (Q1 margin pressure from higher‑cost inventory and tariffs, with a Q2 inflection), are hedged for 2026 above current cocoa spot (cocoa costs modestly higher vs. 2025 with limited downside participation), and cited Q4 highlights and segment trends including salty‑snack growth of 18% with double‑digit volume, organic confection ~3%, salty mid‑single digits, international down low‑single digits, and that ~75% of the portfolio remains priced under $4.The Hershey Company Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.69B | 11.20B | 11.16B | 10.42B | 8.97B |
| Gross Profit | 3.89B | 5.30B | 5.00B | 4.50B | 4.05B |
| EBITDA | 1.45B | 3.10B | 2.75B | 2.44B | 2.24B |
| Net Income | 883.26M | 2.22B | 1.86B | 1.64B | 1.48B |
Balance Sheet | |||||
| Total Assets | 13.74B | 12.95B | 11.90B | 10.95B | 10.41B |
| Cash, Cash Equivalents and Short-Term Investments | 925.86M | 730.75M | 401.90M | 463.89M | 329.27M |
| Total Debt | 5.40B | 5.45B | 5.13B | 5.12B | 5.38B |
| Total Liabilities | 9.10B | 8.23B | 7.80B | 7.65B | 7.66B |
| Stockholders Equity | 4.64B | 4.71B | 4.10B | 3.30B | 2.76B |
Cash Flow | |||||
| Free Cash Flow | 1.75B | 1.93B | 1.55B | 1.81B | 1.59B |
| Operating Cash Flow | 2.28B | 2.53B | 2.32B | 2.33B | 2.08B |
| Investing Cash Flow | -1.28B | -960.31M | -1.20B | -787.38M | -2.22B |
| Financing Cash Flow | -803.36M | -1.30B | -1.15B | -1.42B | -681.14M |
The Hershey Company Technical Analysis
Negative
197.68
Price Trends
217.49
Negative
201.56
Negative
189.97
Positive
Market Momentum
-4.27
Positive
33.99
Neutral
14.41
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 197.68 is below the 20-day moving average (MA) of 209.28, below the 50-day MA of 217.49, and above the 200-day MA of 189.97, indicating a neutral trend. The MACD of -4.27 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 14.41 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 | $2.99B | 26.69 | 11.02% | 0.95% | 0.34% | 0.85% | |
63 Neutral | $73.94B | 28.42 | 9.43% | 3.53% | 4.13% | -5.19% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $40.05B | 41.93 | 19.20% | 3.00% | 4.71% | -23.03% | |
61 Neutral | $9.55B | -3.86 | -21.55% | 4.45% | -0.66% | -326.55% | |
60 Neutral | $18.44B | 20.26 | 23.70% | 5.19% | -5.65% | 0.41% | |
54 Neutral | $26.54B | -4.90 | -13.44% | 6.75% | -3.70% | -431.05% |
* Consumer Defensive Sector Average
HSY
The Hershey Company
197.68
38.35
24.07%
GIS
General Mills
34.70
-18.74
-35.06%
SJM
JM Smucker
92.21
-18.18
-16.47%
TR
Tootsie Roll
43.12
13.21
44.19%
MDLZ
Mondelez International
57.84
-6.50
-10.10%
KHC
Kraft Heinz
22.11
-4.97
-18.36%
The Hershey Company Corporate Events
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.