One-glance verdict
Undervalued
$300.61 our estimate vs market $175.64
Wall Street consensus: $197.05 (-34.5% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
The Hershey Company
HSY · NYQ · Consumer Defensive · Confectioners
Current price
$175.64
52-week range
$156.16 - $239.48
Market cap
$35.29B
Balance sheet
Stretched
6.50x Adequate
Net debt $5.13B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 32.8% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 3.4% over 3 years.
What this company does
The Hershey Company
Hershey's makes and sells delicious treats like chocolate bars and snacks that people enjoy all over the world. Most of its money comes from selling these popular products, and its success matters because it shows how well the company is doing at meeting people's sweet cravings. This is a good indicator of their overall business health, similar to how we might look at how busy a local bakery is to understand if it's doing well.
How the company got here
The Hershey Company was founded in 1894 by Milton S. Hershey, who initially found success with caramels before pivoting to chocolate. He believed chocolate was a permanent confection, unlike caramels, and established the Hershey Chocolate Company as a subsidiary of his caramel business. By 1900, he sold his caramel company to focus entirely on chocolate, and by 1905, he had built a massive chocolate manufacturing plant in Derry Township, Pennsylvania, which led to the development of the town of Hershey around it. The Hershey Trust Company, established in 1905, still holds a controlling voting interest in the company today and has historically blocked acquisition attempts.
What it actually does
Hershey is a company that makes and sells a wide variety of confectionery and snack products. Think of all the candy bars, chocolate treats, chewing gums, mints, and even some snack items like popcorn and pretzels that you see in stores – many of those come from Hershey. They sell these products under many well-known brand names, both in the United States and in about 65 other countries around the world.
North America Confectionery
This is Hershey's largest business segment, focusing on chocolate and non-chocolate candies, as well as gum and mints, primarily in the United States and Canada. It's the heart of the company's traditional offerings, including iconic brands like Hershey's, Reese's, and Kit Kat (in the U.S.). This segment also encompasses related items like protein bars and pantry products such as baking ingredients and beverages.
North America Salty Snacks
This segment is dedicated to Hershey's ventures into the salty snack market within the United States. It includes a range of products like popcorn (such as SkinnyPop), pretzels (like Dot's Homestyle Pretzels), and other snack mixes. This part of the business is about expanding beyond traditional sweets into broader snacking categories.
International
This segment covers all of Hershey's business operations outside of North America. It includes sales and manufacturing in regions like Mexico, Brazil, India, and Malaysia, serving consumers in those areas and exporting to many other countries. While not as large as the North American segments, it represents Hershey's efforts to grow its brands globally.
What management is betting on now
Hershey's current strategy, which they call 'Lead Next Generation Snacking,' involves strengthening their core candy business while also significantly expanding into other snacking areas, including salty and functional snacks like protein bars. They are investing in their brands, using technology and AI to improve operations and their supply chain, and aiming for greater efficiency. The goal is to be a more integrated snacking company that can adapt quickly to changing consumer tastes and preferences.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$567.30M
FY2024 Q4
$807.08M
FY2025 Q1
$251.16M
FY2025 Q2
$27.13M
FY2025 Q3
$755.99M
FY2025 Q4
$788.47M
FY2026 Q1
$354.21M
FY2026 Q2
$329.49M
Revenue
$2.79B
Net income
$457.67M
Diluted EPS
—
Operating cash flow
$419.32M
Free cash flow
$329.49M
Fetching…
Sources
Revenue
$3.10B
Net income
$435.11M
Diluted EPS
—
Operating cash flow
$468.81M
Free cash flow
$354.21M
Fetching…
Sources
Revenue
$3.09B
Net income
$320.02M
Diluted EPS
—
Operating cash flow
$926.55M
Free cash flow
$788.47M
Fetching…
Sources
Revenue
$3.18B
Net income
$276.32M
Diluted EPS
—
Operating cash flow
$841.92M
Free cash flow
$755.99M
Fetching…
Sources
Revenue
$2.61B
Net income
$62.72M
Diluted EPS
—
Operating cash flow
$112.22M
Free cash flow
$27.13M
Fetching…
Sources
Revenue
$2.81B
Net income
$224.20M
Diluted EPS
—
Operating cash flow
$396.68M
Free cash flow
$251.16M
Fetching…
Sources
Revenue
$2.89B
Net income
$796.59M
Diluted EPS
—
Operating cash flow
$941.60M
Free cash flow
$807.08M
Fetching…
Sources
Revenue
$2.99B
Net income
$446.30M
Diluted EPS
—
Operating cash flow
$695.25M
Free cash flow
$567.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $300.61 vs current price $175.64
Wall Street consensus is the average analyst price target: $197.05 (-34.5% lower than our fair-value estimate).
Our most-likely fair value is $300.61 a share — about 71.2% above today's price of $175.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.1B. Interest coverage 6.5x.
Net debt
$5.13B
Interest coverage
6.50x
The Hershey Company's profit covers its interest bill about 6.5 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
HSY
BASELINE
The Hershey Company
Total debt $5.92B Interest coverage 6.50x This is the baseline the peer rows are being compared against.
Total debt $22.06B Interest coverage 6.04x -7% vs HSY Has roughly the same debt cushion as HSY.
Total debt $76.54B Interest coverage 7.67x +18% vs HSY Carries about 1.2x more debt cushion than HSY.
Total debt $13.62B Interest coverage 4.93x -24% vs HSY Carries about 1.3x less debt cushion than HSY.
Total debt $13.29M Interest coverage 225.81x +3,372% vs HSY Carries about 34.7x more debt cushion than HSY.
What you should know
The case for and against HSY
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.0% last year.
-
Returns 32.8% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 3.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.99x
Forward P/E
17.85x
P/B
7.73x
P/S
2.90x
EV/EBITDA
14.27x
PEG ratio
0.84x
Profitability
How much profit each dollar creates
Gross margin
38.4%
Operating margin
23.1%
Net margin
12.2%
ROE
32.8%
ROA
9.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.30x
Current ratio
1.18x
Quick ratio
0.51x
Total debt
$5.92B
Total cash
$791.21M
Growth
How the business has been compounding
Revenue TTM
$12.16B
Revenue 5Y CAGR
6.8%
EPS TTM
7.32
EPS 5Y CAGR
-18.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.66B
Free CF TTM
$1.82B
FCF margin
15.0%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
77.1%
Last ex-div date
2026-08-14