Hershey is a leading US confectionery manufacturer (in a $55 billion market, according to Euromonitor), controlling more than 35% of the domestic chocolate aisle.
It is a $32.7B consumer staples company. Revenue grew 7.7% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~1.8 years of free cash flow. It trades at 27.9× earnings.
- Website
- thehersheycompany.com
- Location
- Hershey, PA
- Employees
- 19 595
- Sector
- Consumer Defensive
- Founded
- 1894
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat; Growth and Health lag behind.
Valuation52
- P/E vs own history93th pct · 0/25
- FCF yield6.8% · 20/25
- P/S3.3x · 20/25
- EV/EBITDA16.1x · 12/25
Growth37
- Revenue CAGR6.8% · 12/25
- Net income CAGR-12.1% · 0/25
- EPS CAGR ~5Y-7.6% · 0/25
- Fwd implied growth57.3% · 25/25
Profitability77
- ROIC10.3% · 12/25
- ROE31.3% · 25/25
- Net margin12.2% · 20/25
- Operating margin16.9% · 20/25
Health42
- Altman Zn/a · 0/25
- Current ratio1.18 · 12/25
- Interest coverage7.4x · 18/25
- Net cash / debtD/A 29% · 12/25
Quality90
- Piotroski F6/9 · 15/25
- Beneish M-2.77 · 25/25
- FCF conversion150% · 25/25
- Margin stabilityσ 4.7% · 25/25
Moat88
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin45.2% · 20/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 7.6% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2024FinancialBest year on record$2.22B net income
- FY2022FinancialRevenue crossed $10B$10.4B for the year
- 2017AcquisitionHershey acquired Amplify Snack Brands, the Austin, Texas-based manufacturer of SkinnyPop in an all-cash…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$7.44B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2002MilestoneThis became a sticking point in Hershey's failed attempt to attract a serious buyer in 2002
- 1988AcquisitionHershey's acquired the rights to manufacture and distribute many Cadbury-branded products in the United…
- 1986AcquisitionHershey's made a brief foray into cough drops when it acquired the Luden's cough drops brand
- 1969AcquisitionOnly six years after the Reese/Hershey merger, Reese's Peanut Butter Cups became the Hershey Company's top…
- 1951MilestoneThe Hershey Industrial School was renamed the Milton Hershey School in 1951
- 1948AcquisitionMars bought out Murrie and became one of Hershey's main competitors
- 1940MilestoneAn affiliate of the American Federation of Labor successfully organized Hershey's workers under the…
- 1899ProductHe developed the Hershey process, which is less sensitive to milk quality than traditional methods
- 1894FoundedThe Hershey Chocolate Company was founded in 1894 as a subsidiary of Lancaster Caramel Company
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Strong cash conversion — FCF is 18.3% of revenue
- Interest covered 7.4× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+7.7% YoY
- Profitable — makes more than it spends$1.49B TTM
- Profit growing — earnings are higher than last year-18.3% YoY
- Generates cash — cash left after running and investing$2.23B TTM
- Debt under control — could handle its obligations~1.8y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$32.7B market cap
- Not printing shares — share count not ballooning — you keep your slice+67.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 30/100
- Pays a dividend — returns cash to shareholdersyield 6.75%
- Valuation not extreme — price not wildly above earningsP/E 27.9
Peer comparisonThe Hershey Company vs 6 largest consumer defensive peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| HSY this company | $32.7B | 27.9 | +7.7% | 12.2% | Strained |
| WMT Walmart Inc. | $882.9B | 40.8 | +6.2% | 3.0% | Strained |
| COST Costco Wholesale Corp | $419.2B | 45.5 | +10.1% | 3.0% | Mixed |
| KO Coca-Cola Company | $379.3B | 26.5 | +6.5% | 28.6% | Mixed |
| PG Procter & Gamble Company | $351.2B | 21.9 | +3.3% | 18.4% | Solid |
| PM Philip Morris International Inc. | $313.6B | 28.8 | +8.9% | 25.6% | Strained |
| PEP PepsiCo, Inc. | $171.8B | 16.5 | +6.4% | 11.1% | Strained |
Head-to-head: HSY vs WMT · HSY vs COST · HSY vs KO
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/HSY
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of HSY on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $162.74 · market cap $32.7B.