The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $38.30B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.10
• Revenue Growth: 2.55%
• EPS Growth: -16.52%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 52
• Industry: Food Confectioners
• EPS (TTM): 1.21
• Shares Outstanding: 148,110,720
• 10 Day Avg. Volume: 1,829,740
• 30 Day Avg. Volume: 1,866,047
• 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: 1.02
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 8.61
• Enterprise Value/Ebitda: 16.33
• 1Y Price Target: $187.00
• Price Target Upside: -1.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $214.00 ▲(13.26% Upside)

The Hershey Company's stock is rated favorably due to strong financial performance and robust technical indicators. While the company faces valuation challenges, its strategic initiatives and leadership changes provide a positive outlook. Earnings call insights highlight potential growth and operational efficiencies, though risks like cocoa inflation and tariffs need monitoring.

Positive Factors

Innovation and Pricing Strategy

Stronger innovation and distribution gains from its plan-o-gram were key drivers for the back half.

Leadership Succession

HSY brings a seasoned executive as its next CEO, a positive for clarity on leadership succession.

Sales Performance

2Q sales growth of 26% and 1H growth of +1.7% exceeded management's expectations, fueled by market share expansion.

Negative Factors

Cocoa Inflation

Cocoa inflation, incremental tariffs, and elasticity-related volume pressure are expected to partially offset gross margin improvements.

GLP-1 Drugs Impact

GLP-1 drugs are having a disproportionately negative impact on certain food categories including indulgent snacks, which could intensify as pill versions materialize.

SNAP Benefits and Sales Impact

Five states have eliminated candy from SNAP benefit spending in 2026, which could impact sales.

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, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

How the Company Makes Money

The Hershey Company primarily generates revenue through the sale of its confectionery products, which are distributed through a variety of channels including retail stores, online platforms, and wholesale distributors. Key revenue streams for Hershey include sales from its flagship chocolate brands like Hershey's, Reese's, and Kit Kat, as well as its non-chocolate products such as Twizzlers and Ice Breakers. The company leverages a strong brand portfolio and extensive distribution network to maintain a significant market presence in North America and internationally. Hershey also benefits from partnerships and licensing agreements that expand its brand reach and product offerings. Seasonal and holiday-related products contribute significantly to its earnings, with spikes in sales during periods like Halloween, Christmas, and Easter. Additionally, strategic acquisitions and innovations in product lines support Hershey's growth and revenue diversification.

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	2.38B	2.20B	1.90B
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	5.34B	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	2.24B
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: Positive
• Last Price: 188.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSY, the sentiment is Positive. The current price of 188.94 is above the 20-day moving average (MA) of 177.64, above the 50-day MA of 171.35, and above the 200-day MA of 167.59, indicating a bullish trend. The MACD of 5.62 indicates Negative momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 50.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSY.

The Hershey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	75 Outperform	$38.30B	25.11	35.89%	2.90%	2.55%	-16.52%
CAG	70 Outperform	$8.98B	7.83	13.27%	7.56%	-3.64%	231.77%
MDLZ	67 Neutral	$80.61B	22.75	13.51%	3.02%	3.14%	-5.80%
TR	64 Neutral	$3.17B	31.80	10.39%	0.71%	-5.52%	-5.01%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.97%	-12.13%
SJM	56 Neutral	$11.69B	22.22	-17.87%	3.99%	6.69%	-261.87%
RMCF	46 Neutral	$12.24M	―	-60.80%	―	5.81%	19.66%

The Hershey Company Corporate Events

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.

The Hershey Company Appoints New CEO Kirk Tanner

On July 6, 2025, The Hershey Company announced the appointment of Kirk Tanner as its new President and CEO, effective August 18, 2025, succeeding Michele Buck who will retire but continue as a special advisor until June 2026. Tanner, with extensive experience from PepsiCo and Wendy’s, is expected to drive Hershey’s growth and innovation, leveraging his expertise in global brand management and operational excellence to further the company’s ambition of being a leading snacking powerhouse.

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 Holds Annual Stockholders Meeting

On May 6, 2025, The Hershey Company held its Annual Meeting of Stockholders via webcast, during which several key proposals were voted on. The election of directors saw several individuals elected, while Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025. Additionally, the compensation of named executive officers was approved on a non-binding advisory basis, and an amended and restated certificate of incorporation was voted for.

Hershey’s Annual Meeting to Review Business Update

On May 6, 2025, The Hershey Company will conduct its Annual Meeting of Stockholders via a live webcast to provide a business review update. This event is significant for stakeholders as it offers insights into the company’s operations and strategic direction, although the presentation materials are not subject to certain regulatory liabilities.