Hershey Company
Exchange: NYSESector: Consumer DefensiveIndustry: Confectioners
The Hershey Company is an industry leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet, and communities. Hershey has more than 20,000 employees in the U.S. and worldwide who work daily to deliver delicious, high-quality products. The company has more than 90 brand names in approximately 80 countries that drive more than $11.2 billion in annual revenues, including Hershey's, Reese's, Kisses, KIT KAT®, Jolly Rancher, Twizzlers, and Ice Breakers, and salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels. For over 130 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker's founder, Milton Hershey, created Milton Hershey School in 1909, and since then, the company has focused on helping children succeed through equitable access to education.
Did you know?
Free cash flow has been growing at 3.9% annually.
Current Price
$182.34
-1.83%GoodMoat Value
$127.08
30.3% overvaluedProfile
Valuation (TTM)
Market Cap$36.96B
P/E33.78
EV$48.11B
P/B7.97
Shares Out202.69M
P/Sales3.08
Revenue$11.99B
EV/EBITDA18.87
Hershey Company (HSY) Stock Analysis
GoodMoat Analysis
Hershey possesses a strong brand moat but fails the value investing decision framework due to a high valuation and low margin of safety. The stock's current price of $217 is significantly above the GoodMoat target of $144.79, indicating an unfavourable risk/reward profile for a value investor.
Read full analysis
The Hershey Company is a dominant player in the confectionery industry, primarily known for its iconic chocolate brands. Its competitive advantages, assessed via the GoodMoat framework, are anchored in a powerful brand and culture, which is a key moat criterion. This is supported by its leading market share and deep consumer loyalty in North America. However, the business model faces challenges in other moat criteria like high switching costs or proprietary data, and its growth is mature. Financially, it shows strength with an ROE of 19.0% and a consistent dividend, but revenue growth is a modest 7.0% YoY. Applying the Decision Framework, the primary issue is valuation. The stock trades at a P/E of 49.8, which is extremely high for its growth profile. More critically, the current price of $217 represents a premium of nearly 50% over the GoodMoat target fair value of $144.79. This results in a negative margin of safety, placing it firmly in the 'Unfavourable' band of the Valuation Gate. While the company has a quality business, the price does not provide the necessary cushion for a value-oriented investment. Further investigation is not warranted under the current framework unless the price corrects significantly to offer a margin of safety.
Market Cap$36.96B
Current Price$182.34
P/E Ratio33.78
Forward P/E—
PEG Ratio0.37
EPS$4.34
Book Value$22.88
P/B Ratio7.97
HSY Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 3.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.5B
Revenue
8.0B
FY19
8.1B
FY20
9.0B
FY21
10.4B
FY22
11.2B
FY23
11.2B
FY24
11.7B
FY25
Net Income
1.1B
FY19
1.3B
FY20
1.5B
FY21
1.6B
FY22
1.9B
FY23
2.2B
FY24
883M
FY25
HSY 52-Week Range
$148.01
$236.28
50-Day MA: $209.74200-Day MA: $191.55
Did you know?
Free cash flow has been growing at 3.9% annually.
Hershey Company (HSY) Financial Summary
Hershey Company (HSY) is a Consumer Defensive company in the Confectioners industry, listed on NYSE. The stock currently trades at $182.34 with a market capitalization of $36.96B.
Key valuation metrics include a P/E ratio of 33.78, price-to-book ratio of 7.97, and EPS of $4.34. The company reports a profit margin of 9.1% and return on equity of 23.6%.
HSY Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $36.96B |
| P/E Ratio | 33.78 |
| EPS | $4.34 |
| P/B Ratio | 7.97 |
| P/S Ratio | 3.08 |
| EV/EBITDA | 18.87 |
| Dividend Yield | 2.94% |
| Profit Margin | 9.1% |
| Return on Equity | 23.6% |
| Debt/Equity | 1.17 |
HSY Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.99B | $1.15B |
| FY20 | $8.15B | $1.28B |
| FY21 | $8.97B | $1.48B |
| FY22 | $10.42B | $1.64B |
| FY23 | $11.16B | $1.86B |
| FY24 | $11.20B | $2.22B |
| FY25 | $11.69B | $883.26M |
Hershey Company (HSY) Valuation
Based on GoodMoat's DCF model, Hershey Company has a fair value estimate of $127.08. At the current price of $182.34, the stock appears 43.5% overvalued relative to our intrinsic value estimate.
HSY Quality Indicators
Hershey Company maintains a profit margin of 9.1% and an operating margin of 12.3%. Return on equity stands at 23.6%. The current ratio is 1.19. Debt-to-equity ratio is 1.17.
About Hershey Company
The Hershey Company is an industry leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet, and communities. Hershey has more than 20,000 employees in the U.S. and worldwide who work daily to deliver delicious, high-quality products. The company has more than 90 brand names in approximately 80 countries that drive more than $11.2 billion in annual revenues, including Hershey's, Reese's, Kisses, KIT KAT®, Jolly Rancher, Twizzlers, and Ice Breakers, and salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels. For over 130 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker's founder, Milton Hershey, created Milton Hershey School in 1909, and since then, the company has focused on helping children succeed through equitable access to education.
HSY Free Cash Flow
Hershey Company generated $1.82B in trailing twelve-month free cash flow, representing an FCF yield of 4.93%. This moderate FCF yield indicates reasonable cash generation.
HSY Shares Outstanding
Hershey Company has 0.20 billion shares outstanding at a share price of $182.34, giving it a market capitalization of $36.96B.
HSY Recent Insider Trades
Recent insider transactions at Hershey Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| HERSHEY TRUST CO TRUSTEE IN TRUST FOR MILTON HERSHEY SCHOOL | SELL | 3,666 | $684043.71 |
| HERSHEY TRUST CO TRUSTEE IN TRUST FOR MILTON HERSHEY SCHOOL | SELL | 573 | $109295.85 |
| Voskuil Steven E (SVP, Chief Financial Officer) | SELL | 1,500 | $291150.00 |