📊 HSY Key Takeaways
Is Hershey Co (HSY) a Good Investment?
Hershey demonstrates solid operational fundamentals with 4.4% revenue growth and strong 20.6% operating margins, supported by healthy free cash flow generation of $354.2M. However, a dramatic 60.2% YoY net income collapse combined with elevated leverage (1.10x debt-to-equity) and tight liquidity (0.77x quick ratio) presents significant downside risk that requires clarification on earnings deterioration drivers.
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 margins at 20.6% with 39.4% gross margin indicating pricing power and cost control
- Solid free cash flow generation of $354.2M with healthy 11.4% FCF margin supporting capital allocation
- Robust interest coverage ratio of 11.7x provides debt servicing cushion despite high leverage
- Positive revenue growth of 4.4% YoY shows market demand resilience in core business
- 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
- Severe net income decline of 60.2% YoY despite revenue growth signals deteriorating bottom-line profitability from unidentified sources
- Elevated debt-to-equity ratio of 1.10x with $5.2B long-term debt exceeding $4.7B equity creates financial vulnerability to earnings pressure
- Quick ratio of 0.77x below safety threshold of 1.0 indicates potential short-term liquidity constraints
- Weak capital returns with ROE of 9.2% and ROA of 3.1% suggest inefficient capital deployment
- 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 trend reversal and detailed breakdown of 60% YoY decline sources
- Debt reduction trajectory and refinancing risks given current leverage levels
- Operating cash flow sustainability relative to capital expenditure and dividend obligations
- Gross margin maintenance amid inflation and competitive pressures in confectionery sector
- 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 |
|---|---|---|---|
| Q1 2026 | $2.8B | $224.2M | N/A |
| 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 |
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 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HSY's key strengths?
Claude: Strong operating margins at 20.6% with 39.4% gross margin indicating pricing power and cost control. Solid free cash flow generation of $354.2M with healthy 11.4% FCF margin supporting capital allocation. 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: Severe net income decline of 60.2% YoY despite revenue growth signals deteriorating bottom-line profitability from unidentified sources. Elevated debt-to-equity ratio of 1.10x with $5.2B long-term debt exceeding $4.7B equity creates financial vulnerability to earnings pressure. 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 $3.1B.
Does HSY pay dividends?
Hershey Co pays dividends, with $288.0M 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 May 2026, Hershey Co has a HOLD rating with 72% 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 9.2% (sector avg: 15%), net margin of 14.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
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 above sector average. Always conduct your own research.
What is HSY's free cash flow?
Hershey Co's operating cash flow is $468.8M, with capital expenditures of $114.6M. FCF margin is 11.4%.
How does HSY compare to other Market stocks?
Vs Default sector averages: Net margin 14.0% (avg: 12%), ROE 9.2% (avg: 15%), current ratio 1.24 (avg: 1.8).