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Hershey (HSY) Stock Analysis

This is a peer-relative look at Hershey (HSY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Hershey (HSY)
Profile ItemHSY
NameThe Hershey Company Common Stock
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryFood Products
GICS Sub-IndustryPackaged Foods & Meats
Market Capitalization35.79 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 17, 1980
Security TypeCommon Stock

Price Performance

Cumulative Growth

HSY
GSPC
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Hershey (HSY) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Hershey (HSY) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Hershey (HSY) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Total Return (1Y)3.76%9.07%
Total Return (3Y, Annualized)-0.13%2.06%
Total Return (5Y, Annualized)2.04%1.14%

Risk Profile

Drawdown History

HSY
GSPC
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Hershey (HSY) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Hershey (HSY) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Volatility (1Y, Annualized)27.95%32.65%
Beta (5Y)0.070.43
Max Drawdown (5Y)-45.25%-51.71%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. HSY is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Sharpe Ratio (1Y)-0.020.14
Sortino Ratio (1Y)-0.030.20

Profitability

ROE (TTM)

Hershey (HSY) posts ROE of 38.00%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

HSY

Food, Beverage & Tobacco industry group

38.00%

Group distribution
HSY
38.00%
Max
32.02%
Q3
16.61%
Median
10.05%
Q1
4.10%
Min
-10.50%
Largest peers
PEP
52.19%
KO
40.59%
HSY
38.00%
BTI
13.42%
PM
--
BUD
--
MO
--
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Where Hershey (HSY) stands on ROE within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Hershey (HSY) keeps 14.63% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

HSY

Food, Beverage & Tobacco industry group

14.63%

Group distribution
Max
24.83%
HSY
14.63%
Q3
11.22%
Median
5.94%
Q1
2.05%
Min
-11.49%
Largest peers
MO
39.33%
KO
28.65%
BTI
24.99%
PM
24.83%
BUD
15.42%
HSY
14.63%
PEP
11.09%
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Where Hershey (HSY) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Hershey (HSY) turns 25.55% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

HSY

Food, Beverage & Tobacco industry group

25.55%

Group distribution
Max
34.91%
HSY
25.55%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%
Largest peers
MO
61.48%
PM
41.94%
BTI
34.91%
KO
33.36%
BUD
27.48%
HSY
25.55%
PEP
16.88%
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Where Hershey (HSY) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
ROE (TTM)38.00%10.05%
ROA (TTM)11.82%5.25%
Net Margin (TTM)14.63%5.94%
Operating Margin (TTM)25.55%11.06%
Gross Margin (TTM)41.95%34.26%

Growth

Revenue Growth

Hershey (HSY) grew revenue 4.38%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Hershey (HSY): Revenue Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

EPS Growth

Hershey (HSY) grew earnings per share -60.26%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

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Hershey (HSY): EPS Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

Growth Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Revenue Growth (YoY)4.38%2.38%
Revenue Growth (3Y CAGR)3.92%2.51%
EPS Growth (YoY)-60.26%-2.47%
EPS Growth (3Y CAGR)-18.31%4.29%

Financial Strength

Current Ratio (MRQ)

Hershey (HSY) has current ratio of 1.24, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

HSY

Food, Beverage & Tobacco industry group

1.24

Group distribution
Max
4.01
Q3
2.35
Median
1.53
HSY
1.24
Q1
1.02
Min
0.33
Largest peers
KO
1.38
HSY
1.24
PM
1.02
PEP
0.94
BTI
0.84
MO
0.58
BUD
--
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Where Hershey (HSY) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Hershey (HSY) has debt-to-equity ratio of 1.11, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

HSY

Food, Beverage & Tobacco industry group

1.11

Group distribution
Max
2.19
HSY
1.11
Q3
1.11
Median
0.68
Q1
0.33
Min
0.00
Largest peers
PEP
2.31
HSY
1.11
KO
1.07
BTI
0.72
BUD
0.72
PM
--
MO
--
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Where Hershey (HSY) stands on debt-to-equity ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Current Ratio (MRQ)1.241.53
Debt / Equity (MRQ)1.110.68
Net Debt / EBITDA1.522.57

Dividends

Dividend Yield (TTM)

Hershey (HSY) has dividend yield of 3.23%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

HSY

Food, Beverage & Tobacco industry group

3.23%

Group distribution
Max
9.38%
Q3
3.77%
HSY
3.23%
Median
1.76%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.53%
PEP
4.07%
BTI
3.88%
HSY
3.23%
PM
2.98%
KO
2.19%
BUD
1.91%
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Where Hershey (HSY) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Hershey (HSY) has payout ratio of 64.77%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

HSY

Food, Beverage & Tobacco industry group

64.77%

Group distribution
Max
199.19%
Q3
81.03%
HSY
64.77%
Median
41.52%
Q1
0.00%
Min
0.00%
Largest peers
MO
88.45%
PM
87.74%
BTI
83.97%
PEP
73.02%
HSY
64.77%
KO
61.95%
BUD
27.35%
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Where Hershey (HSY) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
Dividend Yield (TTM)3.23%1.76%
Dividend Payout Ratio (TTM)64.77%41.52%

Valuation

P/E Ratio (TTM)

Hershey (HSY) trades at P/E ratio of 20.14, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

HSY

Food, Beverage & Tobacco industry group

20.14

Group distribution
Max
52.52
Q3
30.78
HSY
20.14
Median
18.76
Q1
12.77
Min
4.72
Largest peers
PM
28.89
KO
28.22
HSY
20.14
PEP
17.78
BUD
17.07
MO
15.69
BTI
15.61
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Where Hershey (HSY) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Hershey (HSY) trades at 2.92 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

HSY

Food, Beverage & Tobacco industry group

2.92

Group distribution
Max
4.64
HSY
2.92
Q3
2.27
Median
1.17
Q1
0.52
Min
0.00
Largest peers
KO
8.06
PM
7.15
MO
6.14
BTI
5.08
HSY
2.92
BUD
2.58
PEP
1.96
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Where Hershey (HSY) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Hershey (HSY) trades at 7.34 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

HSY

Food, Beverage & Tobacco industry group

7.34

Group distribution
HSY
7.34
Max
6.35
Q3
3.07
Median
1.58
Q1
0.82
Min
0.00
Largest peers
KO
11.01
BUD
10.60
BTI
10.59
PEP
8.65
HSY
7.34
PM
-38.86
MO
-56.93
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Where Hershey (HSY) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Hershey (HSY) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: HSYIndustry group median
P/E Ratio (TTM)20.1418.76
P/S Ratio (TTM)2.921.17
P/B Ratio (MRQ)7.341.58
Free Cash Flow Yield (TTM)4.67%4.66%