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The Hershey Company
(NYSE:HSY)
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Rating:63Neutral
Price Target:
$184.00
▼(-1.70% Downside)
Action:Reiterated
Date:09/06/26
HSY scores as a moderate-quality setup: strong cash generation and solid underlying profitability are the main supports, but the overall score is held back by the step-down in margins/earnings versus 2023–2024 and a still debt-heavy balance sheet. Technicals are notably weak (below major moving averages with negative MACD), while valuation is mixed (good yield but a mid-20s P/E). The latest earnings call is modestly positive on H2 margin tailwinds and demand signals, tempered by logistics pressures, slightly reduced margin guidance, and no near-term increase in buybacks.
Positive Factors
Branded portfolio and category reach
Hershey’s established brands, broad household presence and exposure to both confectionery and snack occasions support repeat purchasing and shelf relevance. Category diversification can reduce dependence on a single product group while retailer distribution and seasonal merchandising reinforce durable consumer reach.
Negative Factors
Profitability below recent peaks
Although Hershey remains profitable, the decline in margins and net income from recent highs signals reduced earnings power and a less favorable cost or mix environment. Sustained margin recovery is important because weaker profitability can constrain reinvestment, cash allocation and resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Branded portfolio and category reach
Hershey’s established brands, broad household presence and exposure to both confectionery and snack occasions support repeat purchasing and shelf relevance. Category diversification can reduce dependence on a single product group while retailer distribution and seasonal merchandising reinforce durable consumer reach.
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
$34.79B
Dividend Yield3.31%
Average Volume (3M)1.36M
Price to Earnings (P/E)23.5
Beta (1Y)-0.04
Revenue Growth7.69%
EPS Growth-2.62%
CountryUS
Employees18,573
SectorGeneral
Sector StrengthN/A
IndustryFood Confectioners
Share Statistics
EPS (TTM)7.38
Shares Outstanding146,312,150
10 Day Avg. Volume1,105,789
30 Day Avg. Volume1,362,897
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)7.98
Price to Sales (P/S)3.16
P/FCF Ratio21.15
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
$203.13Price Target Upside8.52% 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
Negative
187.18
Price Trends
177.94
Negative
181.07
Negative
189.76
Negative
Market Momentum
-0.93
Positive
38.30
Neutral
13.19
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 187.18 is above the 20-day moving average (MA) of 182.12, above the 50-day MA of 177.94, and below the 200-day MA of 189.76, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 13.19 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $29.47B | -8.69 | -8.44% | 6.44% | -1.62% | 36.06% | |
67 Neutral | $13.47B | 58.64 | 4.06% | 3.51% | 5.08% | ― | |
67 Neutral | $2.92B | 29.83 | 10.15% | 0.93% | 1.65% | 5.45% | |
66 Neutral | $78.21B | 22.53 | 13.47% | 3.26% | 6.93% | -0.53% | |
63 Neutral | $34.79B | 23.46 | 32.20% | 3.31% | 7.69% | -2.62% | |
61 Neutral | $20.47B | -225.24 | -0.99% | 6.37% | -5.45% | -104.44% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
HSY
The Hershey Company
173.15
-8.89
-4.88%
GIS
General Mills
38.29
-8.89
-18.85%
SJM
JM Smucker
126.08
18.90
17.64%
TR
Tootsie Roll
38.78
-0.85
-2.15%
MDLZ
Mondelez International
61.28
1.42
2.37%
KHC
Kraft Heinz
24.85
-0.33
-1.29%
The Hershey Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Hershey Names Dave Hulays as New Chief Financial Officer
Positive
Sep 2, 2026
On September 2, 2026, The Hershey Company appointed longtime finance executive Dave Hulays as Senior Vice President and Chief Financial Officer, succeeding Steve Voskuil. Hulays, who has held progressively senior finance roles at Hershey since 201...
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...
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.