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The Hershey Company
(NYSE:HSY)
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Rating:63Neutral
Price Target:
$189.00
▲(8.43% Upside)
Action:Reiterated
Date:07/31/26
HSY scores in the low-to-mid range primarily because financial performance is supported by strong cash generation but constrained by a meaningful margin step-down versus 2023–2024 and still-elevated leverage. The earnings call was moderately constructive with stronger H2 margin tailwinds and a small guidance lift, but tempered by logistics/supply-chain costs and slightly reduced gross-margin improvement guidance. Technicals are weaker with the stock below key longer-term moving averages, and valuation is a headwind given the high P/E despite the supportive dividend yield.
Positive Factors
Strong cash generation
Consistent high free cash flow and ~0.92x FCF conversion provide durable financial flexibility for reinvestment, dividend support, automation and capacity projects. Over a multi-quarter horizon this buffers the business against margin volatility and funds structural improvements.
Negative Factors
Elevated leverage
A relatively debt-heavy capital structure for a consumer staples company constrains financial flexibility for M&A, larger buybacks or cushion against extended margin pressure. Elevated leverage increases interest and refinancing risk if profitability stalls over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent high free cash flow and ~0.92x FCF conversion provide durable financial flexibility for reinvestment, dividend support, automation and capacity projects. Over a multi-quarter horizon this buffers the business against margin volatility and funds structural improvements.
Read all positive factors
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 (HSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.01B
Dividend Yield3.11%
Average Volume (3M)2.12M
Price to Earnings (P/E)24.8
Beta (1Y)-0.06
Revenue Growth7.69%
EPS Growth-2.62%
CountryUS
Employees18,573
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)7.43
Shares Outstanding146,312,150
10 Day Avg. Volume1,541,697
30 Day Avg. Volume2,117,104
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)7.99
Price to Sales (P/S)3.17
P/FCF Ratio21.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$202.38Price Target Upside16.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)8.49
Revenue Forecast (FY)$12.30B
The Hershey Company Business Overview & Revenue Model
Company Description
The Hershey Company, operating with its various subsidiaries, serves as a key manufacturer and distributor of both sweet confections and general household pantry items. Its market reach extends across the United States and globally. The enterprise...
How the Company Makes Money
Hershey makes money primarily by selling branded packaged foods—mainly confectionery and snacks—to retailers and other distributors at wholesale prices, with revenue recognized from product shipments/sales into these channels. Its largest revenue ...
The Hershey Company Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call balanced strong demand signals, better-than-expected elasticities, commodity tailwinds (cocoa deflation visibility), productivity gains and targeted innovation against near-term supply-chain constraints, elevated freight/logistics costs and modestly reduced gross margin guidance. Management portrayed confidence in hitting longer-term framework and emphasized that many headwinds are being addressed via investments and hedging, while remaining prudent on back-half guidance.Positive Updates
Underlying Consumption Strength
Reported U.S. confection retail consumption was about +3% in the quarter, but management said this understated real demand by roughly 2 percentage points (implying underlying demand ~5%), aided by non-measured channel growth and retail inventory replenishment.
Negative Updates
Supply Chain & Dots Operating Headwinds
Supply chain constraints in the dots business led to lower-than-expected operating margin in the quarter, requiring higher spot freight usage, elevated logistics costs, and constrained throughput before capacity/automation improvements come online.
Read all updates
Q2-2026 Updates
Positive
Negative
Underlying Consumption Strength
Reported U.S. confection retail consumption was about +3% in the quarter, but management said this understated real demand by roughly 2 percentage points (implying underlying demand ~5%), aided by non-measured channel growth and retail inventory replenishment.
Read all positive updates
Company Guidance
Hershey said its modest full-year guidance was nudged up after Q2 inventory replenishment completed earlier than expected, but management remains prudent on the back half given macro volatility; they expect gross-margin tailwinds to be stronger in H2 yet kept full-year gross-margin improvement guidance just below ~400 basis points versus prior ~400 bps, and see Q3 as the strongest year‑over‑year earnings-growth quarter with organic net‑sales growth expected in both Q3 and Q4 for North America Confection. Long‑term organic net‑sales guidance for North America confection remains 2%–4% (with 2% as the 2027 starting point) while salt and international are expected to be accretive; management noted U.S. confection retail scanner consumption (~3%) understated true demand by ~2 percentage points due to non‑measured channels (foodservice largest) and that roughly 1 point of Q3 merchandising shipments shifted into Q2 (largely offset by an extra shipping day in Q4). They flagged spot freight/logistics pressure and lower-than-expected segment operating margin in the quarter, said ANC expense was down ~3% in Q2, and reiterated capacity/automation investments (dots capacity online in 2027) with no additional share‑repurchase plan in the back half today.The Hershey Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.16B | 11.69B | 11.20B | 11.16B | 10.42B | 8.97B |
| Gross Profit | 4.64B | 3.89B | 5.30B | 5.00B | 4.50B | 4.05B |
| EBITDA | 2.61B | 1.95B | 3.10B | 2.75B | 2.44B | 2.24B |
| Net Income | 1.49B | 883.26M | 2.22B | 1.86B | 1.64B | 1.48B |
Balance Sheet | ||||||
| Total Assets | 13.97B | 13.74B | 12.95B | 11.90B | 10.95B | 10.41B |
| Cash, Cash Equivalents and Short-Term Investments | 791.21M | 925.86M | 730.75M | 401.90M | 463.89M | 329.27M |
| Total Debt | 5.61B | 5.40B | 5.45B | 5.13B | 5.12B | 5.38B |
| Total Liabilities | 9.41B | 9.10B | 8.23B | 7.80B | 7.65B | 7.66B |
| Stockholders Equity | 4.56B | 4.64B | 4.71B | 4.10B | 3.30B | 2.76B |
Cash Flow | ||||||
| Free Cash Flow | 2.54B | 1.75B | 1.93B | 1.55B | 1.81B | 1.59B |
| Operating Cash Flow | 2.66B | 2.28B | 2.53B | 2.32B | 2.33B | 2.08B |
| Investing Cash Flow | -1.18B | -1.28B | -960.31M | -1.20B | -787.38M | -2.22B |
| Financing Cash Flow | -1.61B | -803.36M | -1.30B | -1.15B | -1.42B | -681.14M |
The Hershey Company Technical Analysis
Positive
174.30
Price Trends
176.53
Positive
184.49
Negative
188.69
Negative
Market Momentum
2.05
Negative
60.54
Neutral
83.47
Negative
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 174.3 is below the 20-day moving average (MA) of 177.77, below the 50-day MA of 176.53, and below the 200-day MA of 188.69, indicating a neutral trend. The MACD of 2.05 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 83.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.01B | 31.48 | 10.15% | 0.96% | 1.65% | 5.45% | |
66 Neutral | $81.19B | 23.39 | 13.47% | 3.30% | 6.93% | -0.53% | |
63 Neutral | $37.01B | 24.79 | 32.20% | 3.24% | 7.69% | -2.62% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $12.97B | -93.38 | -2.44% | 3.72% | 3.72% | 88.76% | |
62 Neutral | $30.25B | -8.92 | -8.44% | 6.23% | -1.62% | 36.06% | |
61 Neutral | $20.96B | -230.59 | -0.99% | 6.77% | -5.45% | -104.44% |
* Consumer Defensive Sector Average
HSY
The Hershey Company
184.22
11.04
6.38%
GIS
General Mills
39.20
-7.26
-15.62%
SJM
JM Smucker
121.39
14.33
13.38%
TR
Tootsie Roll
40.92
3.46
9.25%
MDLZ
Mondelez International
63.61
3.85
6.44%
KHC
Kraft Heinz
25.51
-0.04
-0.18%
The Hershey Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Hershey Adds Digital Transformation Leader to Board
Positive
Jun 9, 2026
On June 3, 2026, The Hershey Company’s board of directors appointed Joe Park, a veteran technology and digital transformation executive, to join the board effective June 29, 2026, and to serve on its Audit and Finance and Risk Management Com...
Business Operations and StrategyExecutive/Board Changes
Hershey Announces New Chief Supply Chain Leadership Transition
Positive
May 28, 2026
On May 28, 2026, The Hershey Company announced that longtime executive Jason Reiman will retire in the second quarter of 2027 after a 30-year career, stepping down as chief supply chain officer on June 22, 2026, and transitioning to a supply chain...
Executive/Board ChangesShareholder Meetings
Hershey Shareholders Approve Directors, Auditor and Executive Pay
Positive
May 8, 2026
On May 5, 2026, The Hershey Company held its 2026 Annual Meeting of Stockholders via live webcast, where shareholders elected a full slate of directors, including both common and Class B representatives, for the coming term. The strong vote totals...
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.