The Hershey Company (HSY) AI Stock Analysis

• Market Cap: $34.39B
• Dividend Yield: 3.23%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.06
• Revenue Growth: -5.91%
• EPS Growth: -19.78%
• Country: US
• Employees: 18,540
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Food Confectioners
• EPS (TTM): 2.09
• Shares Outstanding: 147,990,280
• 10 Day Avg. Volume: 1,531,516
• 30 Day Avg. Volume: 1,643,092
• PEG Ratio: 2.43
• Price to Book (P/B): 14.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.32
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 9.75
• Enterprise Value/Ebitda: 3.89
• 1Y Price Target: $160.85
• Price Target Upside: -5.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $188.00 ▲(10.77%Upside)

The Hershey Company's overall stock score reflects a robust financial performance with strong profitability and efficient cash flow management. However, challenges from tariff impacts and rising Cocoa costs weigh on the outlook, as indicated by recent earnings call insights. Technical analysis and valuation present a mixed picture, with short-term bullish trends tempered by longer-term caution. Despite these challenges, the company's international growth and market position in sweets and salty snacks provide a foundation for future recovery.

Positive Factors

Earnings

The Hershey Company's first quarter exceeded expectations due to better sales in North America and improved margins.

Portfolio Diversification

HSY continues to diversify its snacking portfolio through agreement to acquire LesserEvil, a better-for-you snack manufacturer.

Retail Sales

Retail sales for the Easter season showed strong growth, with a reported increase of at least 16%.

Negative Factors

Cocoa Prices

There is ongoing concern about cocoa price volatility and the uncertainty surrounding the tariff situation, which affects future financial visibility.

Earnings Outlook

Analyst sees risk of a guidance cut due to the 10% tariff on imports, which could weigh on 2025 EPS by approximately $0.45.

Tariffs

The impact of tariffs is expected to result in significant financial implications if not mitigated, potentially affecting earnings in the second half of the year.

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 exhibits strong profitability with high gross and net profit margins. Despite a minor revenue decline, the company's operational efficiency remains robust, supported by stable EBIT and EBITDA margins. The balance sheet is well-capitalized with a manageable debt-to-equity ratio, although there's room for further debt reduction. Cash flow management is effective with strong operating cash flows, though free cash flow growth recently declined slightly.

Income Statement

The Hershey Company demonstrates strong profitability with consistently high gross and net profit margins. Despite a slight dip in total revenue from the previous year, the company maintains solid EBIT and EBITDA margins, reflecting strong operational efficiency. Revenue growth has been robust over the years, although it showed a minor decline recently.

Balance Sheet

The company exhibits a stable financial structure with a reasonable debt-to-equity ratio, indicating manageable leverage. The return on equity is commendable, reflecting efficient use of shareholder funds. The equity ratio indicates a well-capitalized balance sheet, though there is room for improvement in reducing debt levels.

Cash Flow

Hershey's cash flow management is strong, with robust operating cash flows and healthy free cash flow. The operating cash flow to net income ratio signifies effective cash conversion. However, there has been a slight decline in free cash flow growth recently, which warrants attention.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.75B	11.20B	11.16B	10.42B	8.97B	8.15B
	Gross Profit
4.62B	5.30B	5.00B	4.50B	4.05B	3.70B
	EBIT
2.29B	2.90B	2.56B	1.68B	1.61B	1.38B
	EBITDA
2.50B	3.10B	2.75B	2.38B	2.20B	1.90B
	Net Income Common Stockholders
1.65B	2.22B	1.86B	1.64B	1.48B	1.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.52B	730.75M	401.90M	463.89M	329.27M	1.14B
	Total Assets
13.97B	12.95B	11.90B	10.95B	10.41B	9.13B
	Total Debt
6.29B	5.45B	5.13B	5.08B	5.34B	4.78B
	Net Debt
4.78B	4.72B	4.72B	4.62B	5.01B	3.64B
	Total Liabilities
9.28B	8.23B	7.80B	7.65B	7.66B	6.89B
	Stockholders Equity
4.68B	4.71B	4.10B	3.30B	2.76B	2.24B
Cash Flow		Free Cash Flow
1.82B	1.93B	1.55B	1.81B	1.59B	1.26B
	Operating Cash Flow
2.36B	2.53B	2.32B	2.33B	2.08B	1.70B
	Investing Cash Flow
-879.73M	-960.31M	-1.20B	-787.38M	-2.22B	-531.28M
	Financing Cash Flow
-537.77M	-1.30B	-1.15B	-1.42B	-681.14M	-499.23M

The Hershey Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 169.72 is above the 20-day moving average (MA) of 163.05, above the 50-day MA of 163.45, and below the 200-day MA of 169.81, indicating a neutral trend. The MACD of 2.23 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 66.41 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
TR	77 Outperform	$2.97B	27.74	10.39%	1.06%	-5.52%	-5.01%
HSY	75 Outperform	$34.39B	20.93	37.48%	3.23%	-5.91%	-19.78%
MDLZ	72 Outperform	$85.91B	24.66	13.27%	2.83%	0.90%	-14.60%
CAG	67 Neutral	$10.26B	31.46	3.67%	6.51%	-3.15%	-65.38%
Sector *	65 Neutral	$8.76B	15.22	4.69%	4.58%	3.64%	-2.90%
SJM	47 Neutral	$10.06B	22.22	-17.87%	4.50%	6.69%	-261.88%
RMCF	41 Neutral	$11.84M	―	-69.52%	―	-3.12%	6.60%

The Hershey Company Corporate Events

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.