📊 HSY Key Takeaways
Is Hershey Co (HSY) a Good Investment?
Hershey demonstrates solid operational fundamentals with strong revenue growth (+4.4% YoY) and robust cash generation (FCF of $1.8B), but the significant net income decline (-60.2% YoY) raises concerns about margin compression and profitability sustainability despite steady operating performance. The company maintains healthy interest coverage (6.4x) and acceptable leverage (1.01x D/E), though elevated debt levels relative to equity warrant monitoring.
Hershey shows solid underlying business quality through strong gross profitability, healthy free cash flow generation, and manageable liquidity for a branded consumer staples company. However, the sharp 60.2% drop in net income despite 4.4% revenue growth points to clear earnings pressure and weaker profit conversion, which tempers the otherwise stable cash-generating profile.
Why Buy Hershey Co Stock? HSY Key Strengths
- Strong operating cash flow generation ($2.3B) with healthy FCF margin (15.6%) demonstrates efficient cash conversion
- Solid gross margin (33.5%) and operating margin (12.3%) indicate pricing power and operational efficiency in core business
- Acceptable leverage position (1.01x Debt/Equity) with adequate interest coverage (6.4x) reduces financial distress risk
- Consistent revenue growth (+4.4% YoY) demonstrates market demand retention in competitive confectionery sector
- Strong free cash flow generation with $1.82B in free cash flow and a 15.6% FCF margin
- Healthy gross margin of 33.5% and positive revenue growth indicate resilient brand strength and pricing power
- Financial structure remains serviceable with 6.4x interest coverage and a current ratio of 1.19x
HSY Stock Risks: Hershey Co Investment Risks
- Sharp net income decline (-60.2% YoY) despite revenue growth signals significant margin compression or one-time charges requiring investigation
- Relatively weak current ratio (1.19x) and quick ratio (0.72x) indicate potential near-term liquidity constraints
- High long-term debt ($4.7B) represents 102% of equity, limiting financial flexibility and increasing refinancing risk
- Net margin compression to 7.6% from implied higher prior year reflects deteriorating bottom-line profitability
- Net income fell 60.2% year over year, signaling significant earnings volatility or non-operating pressure
- Operating margin of 12.3% is meaningfully below gross margin, suggesting cost inflation or elevated overhead pressure
- Leverage is moderate with debt/equity at 1.01x and $4.68B of long-term debt, limiting balance sheet flexibility if profits stay weak
Key Metrics to Watch
- Net income recovery trajectory and root cause analysis of 60% YoY decline
- Operating margin sustainability and cost structure management
- Free cash flow stability and debt paydown capacity relative to $4.7B long-term debt obligation
- Net income recovery and operating margin trend
- Free cash flow consistency relative to debt levels
Hershey Co (HSY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Hershey Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HSY Profit Margin, ROE & Profitability Analysis
HSY vs Market Sector: How Hershey Co Compares
How Hershey Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hershey Co Stock Overvalued? HSY Valuation Analysis 2026
Based on fundamental analysis, Hershey Co has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hershey Co Balance Sheet: HSY Debt, Cash & Liquidity
HSY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hershey Co's revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion.
HSY Revenue Growth, EPS Growth & YoY Performance
HSY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.0B | $276.3M | N/A |
| Q2 2025 | $2.1B | $62.7M | N/A |
| Q1 2025 | $2.8B | $224.2M | N/A |
| Q3 2024 | $3.0B | $446.3M | N/A |
| Q2 2024 | $2.1B | $180.9M | N/A |
| Q1 2024 | $3.0B | $587.2M | N/A |
| Q3 2023 | $2.7B | $399.5M | N/A |
| Q2 2023 | $2.4B | $315.6M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hershey Co Dividends, Buybacks & Capital Allocation
HSY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hershey Co (CIK: 0000047111)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HSY
What is the AI rating for HSY?
Hershey Co (HSY) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HSY's key strengths?
Claude: Strong operating cash flow generation ($2.3B) with healthy FCF margin (15.6%) demonstrates efficient cash conversion. Solid gross margin (33.5%) and operating margin (12.3%) indicate pricing power and operational efficiency in core business. ChatGPT: Strong free cash flow generation with $1.82B in free cash flow and a 15.6% FCF margin. Healthy gross margin of 33.5% and positive revenue growth indicate resilient brand strength and pricing power.
What are the risks of investing in HSY?
Claude: Sharp net income decline (-60.2% YoY) despite revenue growth signals significant margin compression or one-time charges requiring investigation. Relatively weak current ratio (1.19x) and quick ratio (0.72x) indicate potential near-term liquidity constraints. ChatGPT: Net income fell 60.2% year over year, signaling significant earnings volatility or non-operating pressure. Operating margin of 12.3% is meaningfully below gross margin, suggesting cost inflation or elevated overhead pressure.
What is HSY's revenue and growth?
Hershey Co reported revenue of $11.7B.
Does HSY pay dividends?
Hershey Co pays dividends, with $1,085.3M distributed to shareholders in the trailing twelve months.
Where can I find HSY SEC filings?
Official SEC filings for Hershey Co (CIK: 0000047111) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HSY's EPS?
Hershey Co has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HSY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hershey Co has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HSY stock overvalued or undervalued?
Valuation metrics for HSY: ROE of 19.0% (sector avg: 15%), net margin of 7.6% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy HSY stock in 2026?
Our dual AI analysis gives Hershey Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HSY's free cash flow?
Hershey Co's operating cash flow is $2.3B, with capital expenditures of $454.6M. FCF margin is 15.6%.
How does HSY compare to other Market stocks?
Vs Default sector averages: Net margin 7.6% (avg: 12%), ROE 19.0% (avg: 15%), current ratio 1.19 (avg: 1.8).