The Hershey Company (HSY) 10-Year Financial Performance & Capital Metrics

HSY • • Industrial / General

Consumer DefensiveConfectionersChocolate & ConfectioneryMajor Chocolate & Candy Brands

AboutThe Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.Show more

Revenue $11.2B +0.3%
EBITDA $3.35B +12.5%
Net Income $2.22B +19.3%
EPS (Diluted) 10.94 +20.8%
Gross Margin 47.32% +5.7%
EBITDA Margin 29.94% +12.1%
Operating Margin 25.87% +12.8%
Net Margin 19.83% +18.9%
ROE 50.4% +0.2%
ROIC 23.82% +4.0%
Debt/Equity 1.16 -7.6%
Interest Coverage 16.63 +4.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Dividend Aristocrat: 33 years of consecutive increases
✓Excellent 3Y average ROE of 51.7%
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 17.2% free cash flow margin
✓Healthy dividend yield of 2.7%
✓Healthy 5Y average net margin of 16.9%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.2%

5Y7%

3Y7.68%

TTM4.71%

Profit (Net Income) CAGR

10Y10.12%

5Y14.08%

3Y14.56%

TTM-23.33%

EPS CAGR

10Y11.94%

5Y14.91%

3Y15.45%

TTM-22.93%

ROCE

10Y Avg31.41%

5Y Avg29.17%

3Y Avg30.74%

Latest32.36%

Peer Comparison

Major Chocolate & Candy Brands

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
HSYThe Hershey Company	29.79B	201.07	18.38	0.33%	11.84%	29.79%	6.46%	1.16

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	7.39B	7.44B	7.52B	7.79B	7.99B	8.15B	8.97B	10.42B	11.16B	11.2B
Revenue Growth %	-0%	0.01%	0.01%	0.04%	0.03%	0.02%	0.1%	0.16%	0.07%	0%
Cost of Goods Sold+	4B	4.27B	4.06B	4.22B	4.36B	4.45B	4.92B	5.92B	6.17B	5.9B
COGS % of Revenue	0.54%	0.57%	0.54%	0.54%	0.55%	0.55%	0.55%	0.57%	0.55%	0.53%
Gross Profit+	3.38B	3.17B	3.46B	3.58B	3.62B	3.7B	4.05B	4.5B	5B	5.3B
Gross Margin %	0.46%	0.43%	0.46%	0.46%	0.45%	0.45%	0.45%	0.43%	0.45%	0.47%
Gross Profit Growth %	0.01%	-0.06%	0.09%	0.03%	0.01%	0.02%	0.09%	0.11%	0.11%	0.06%
Operating Expenses+	2.34B	1.91B	2.14B	1.95B	2.03B	1.92B	2B	2.24B	2.44B	2.4B
OpEx % of Revenue	0.32%	0.26%	0.29%	0.25%	0.25%	0.24%	0.22%	0.21%	0.22%	0.21%
Selling, General & Admin	1.97B	1.89B	1.89B	1.87B	1.91B	1.89B	2B	2.24B	2.44B	2.26B
SG&A % of Revenue	0.27%	0.25%	0.25%	0.24%	0.24%	0.23%	0.22%	0.21%	0.22%	0.2%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	375.61M	23.06M	256.48M	76.83M	120.6M	27.65M	3.52M	1.99M	441K	139.87M
Operating Income+	1.04B	1.21B	1.31B	1.62B	1.6B	1.78B	2.04B	2.26B	2.56B	2.9B
Operating Margin %	0.14%	0.16%	0.17%	0.21%	0.2%	0.22%	0.23%	0.22%	0.23%	0.26%
Operating Income Growth %	-0.28%	0.16%	0.09%	0.24%	-0.02%	0.12%	0.15%	0.11%	0.13%	0.13%
EBITDA+	1.28B	1.51B	1.58B	1.92B	1.89B	2.08B	2.36B	2.64B	2.98B	3.35B
EBITDA Margin %	0.17%	0.2%	0.21%	0.25%	0.24%	0.25%	0.26%	0.25%	0.27%	0.3%
EBITDA Growth %	-0.22%	0.18%	0.04%	0.22%	-0.02%	0.1%	0.14%	0.12%	0.13%	0.13%
D&A (Non-Cash Add-back)	244.93M	301.84M	261.85M	295.14M	291.54M	294.91M	315M	378.96M	419.81M	455.25M
EBIT	982.83M	1.19B	1.21B	1.56B	1.53B	1.65B	1.93B	2.06B	2.33B	2.65B
Net Interest Income+	-77.45M	-90.14M	-98.28M	-138.84M	-144.13M	-149.37M	-127.42M	-137.56M	-151.78M	-165.66M
Interest Income	3.54M	1.8M	1.78M	8.02M	8M	4.1M	2.43M	2.54M	9.73M	8.66M
Interest Expense	80.98M	91.95M	100.07M	146.86M	152.12M	153.47M	129.85M	140.09M	161.51M	174.32M
Other Income/Expense	-135.91M	-155.69M	-202.74M	-213.6M	-215.17M	-287.7M	-246.5M	-343.72M	-389M	-424.3M
Pretax Income+	901.85M	1.1B	1.11B	1.41B	1.38B	1.49B	1.8B	1.92B	2.17B	2.47B
Pretax Margin %	0.12%	0.15%	0.15%	0.18%	0.17%	0.18%	0.2%	0.18%	0.19%	0.22%
Income Tax+	388.9M	379.44M	354.13M	239.01M	234.03M	219.58M	314.4M	272.25M	310.08M	252.7M
Effective Tax Rate %	0.57%	0.65%	0.7%	0.84%	0.83%	0.86%	0.82%	0.86%	0.86%	0.9%
Net Income+	512.95M	720.04M	782.98M	1.18B	1.15B	1.28B	1.48B	1.64B	1.86B	2.22B
Net Margin %	0.07%	0.1%	0.1%	0.15%	0.14%	0.16%	0.16%	0.16%	0.17%	0.2%
Net Income Growth %	-0.39%	0.4%	0.09%	0.5%	-0.02%	0.11%	0.16%	0.11%	0.13%	0.19%
Net Income (Continuing)	512.95M	720.04M	756.54M	1.17B	1.15B	1.28B	1.48B	1.64B	1.86B	2.22B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	49.47M	41.83M	16.23M	8.54M	5.77M	3.53M	0	0	0	0
EPS (Diluted)+	2.32	3.34	3.66	5.58	5.46	6.11	7.11	7.96	9.06	10.94
EPS Growth %	-0.34%	0.44%	0.1%	0.52%	-0.02%	0.12%	0.16%	0.12%	0.14%	0.21%
EPS (Basic)	2.40	3.45	3.79	5.61	5.49	6.13	7.15	8.00	9.09	10.97
Diluted Shares Outstanding	220.65M	215.3M	213.74M	210.99M	210.7M	209.41M	207.76M	206.57M	205.55M	203.49M
Basic Shares Outstanding	219.09M	214.14M	212.25M	209.99M	209.46M	208.45M	206.73M	205.53M	204.74M	202.96M
Dividend Payout Ratio	0.93%	0.69%	0.67%	0.48%	0.53%	0.5%	0.46%	0.47%	0.48%	0.49%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.85B	1.82B	2B	2.24B	2.12B	2.98B	2.25B	2.62B	2.91B	3.76B
Cash & Short-Term Investments	346.53M	296.97M	380.18M	588M	493.26M	1.14B	329.27M	463.89M	401.9M	730.75M
Cash Only	346.53M	296.97M	380.18M	588M	493.26M	1.14B	329.27M	463.89M	401.9M	730.75M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	599.07M	581.38M	588.26M	594.14M	568.51M	615.23M	671.46M	711.2M	823.62M	800.4M
Days Sales Outstanding	29.6	28.52	28.57	27.83	25.98	27.55	27.32	24.91	26.93	26.08
Inventory	750.97M	745.68M	752.84M	784.88M	815.25M	964.21M	988.51M	1.17B	1.34B	1.25B
Days Inventory Outstanding	68.46	63.73	67.68	67.95	68.19	79.11	73.29	72.32	79.37	77.57
Other Current Assets	0	0	151.9M	203.67M	156.02M	158.81M	127.68M	128.31M	118.02M	704.42M
Total Non-Current Assets+	3.5B	3.71B	3.55B	5.46B	6.02B	6.15B	8.17B	8.33B	8.99B	9.19B
Property, Plant & Equipment	2.24B	2.18B	2.11B	2.13B	2.15B	2.29B	2.59B	2.77B	3.62B	3.8B
Fixed Asset Turnover	3.30x	3.42x	3.57x	3.66x	3.71x	3.57x	3.47x	3.76x	3.09x	2.95x
Goodwill	684.25M	812.34M	821.06M	1.8B	1.99B	1.99B	2.63B	2.61B	2.7B	2.71B
Intangible Assets	379.31M	492.74M	474.04M	1.28B	1.34B	1.3B	2.04B	1.97B	2.24B	2.24B
Long-Term Investments	0	0	0	0	0	52.35M	93.09M	133.03M	207.18M	212.93M
Other Non-Current Assets	155.37M	168.37M	147M	252.98M	512M	503.54M	775.11M	811.96M	186.07M	194.11M
Total Assets+	5.34B	5.52B	5.55B	7.7B	8.14B	9.13B	10.41B	10.95B	11.9B	12.95B
Asset Turnover	1.38x	1.35x	1.35x	1.01x	0.98x	0.89x	0.86x	0.95x	0.94x	0.87x
Asset Growth %	-0.05%	0.03%	0.01%	0.39%	0.06%	0.12%	0.14%	0.05%	0.09%	0.09%
Total Current Liabilities+	2.22B	1.91B	2.08B	2.42B	2.01B	1.89B	2.49B	3.26B	3.01B	3.93B
Accounts Payable	474.27M	522.54M	523.23M	502.31M	550.83M	580.06M	692.34M	970.56M	630.54M	807.92M
Days Payables Outstanding	43.23	44.66	47.04	43.49	46.07	47.59	51.33	59.84	37.32	49.97
Short-Term Debt	863.44M	632.71M	859.46M	1.2B	731.59M	512.87M	942.27M	1.44B	1.02B	1.91B
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	0	0	596K	0	0	0	0	0	0
Current Ratio	0.83x	0.95x	0.96x	0.93x	1.05x	1.57x	0.90x	0.80x	0.97x	0.96x
Quick Ratio	0.49x	0.56x	0.60x	0.60x	0.65x	1.06x	0.50x	0.44x	0.52x	0.64x
Cash Conversion Cycle	54.83	47.59	49.21	52.3	48.1	59.07	49.28	37.4	68.97	53.68
Total Non-Current Liabilities+	2.08B	2.79B	2.55B	3.88B	4.39B	5B	5.16B	4.39B	4.8B	4.3B
Long-Term Debt	1.56B	2.35B	2.06B	3.25B	3.46B	4.01B	4.02B	3.27B	3.72B	3.12B
Capital Lease Obligations	0	0	0	0	259.73M	257.76M	376.48M	364.04M	347.57M	372.9M
Deferred Tax Liabilities	53.19M	39.59M	45.66M	176.86M	200.02M	229.03M	288M	328.4M	345.7M	424.24M
Other Non-Current Liabilities	468.72M	400.16M	438.94M	446.05M	471.61M	501.56M	476.16M	424.89M	383.58M	383.49M
Total Liabilities	4.3B	4.7B	4.62B	6.3B	6.4B	6.89B	7.66B	7.65B	7.8B	8.23B
Total Debt+	2.42B	2.98B	2.92B	4.46B	4.48B	4.82B	5.38B	5.12B	5.13B	5.45B
Net Debt	2.07B	2.68B	2.54B	3.87B	3.99B	3.68B	5.05B	4.65B	4.72B	4.72B
Debt / Equity	2.31x	3.60x	3.14x	3.17x	2.57x	2.15x	1.95x	1.55x	1.25x	1.16x
Debt / EBITDA	1.89x	1.98x	1.85x	2.32x	2.37x	2.32x	2.28x	1.94x	1.72x	1.62x
Net Debt / EBITDA	1.62x	1.78x	1.61x	2.02x	2.11x	1.77x	2.14x	1.76x	1.58x	1.41x
Interest Coverage	12.81x	13.11x	13.13x	11.06x	10.49x	11.62x	15.74x	16.14x	15.86x	16.63x
Total Equity+	1.05B	827.69M	931.57M	1.41B	1.74B	2.24B	2.76B	3.3B	4.1B	4.71B
Equity Growth %	-0.31%	-0.21%	0.13%	0.51%	0.24%	0.28%	0.23%	0.2%	0.24%	0.15%
Book Value per Share	4.75	3.84	4.36	6.67	8.28	10.69	13.27	15.97	19.94	23.17
Total Shareholders' Equity	998M	785.86M	915.34M	1.4B	1.74B	2.23B	2.76B	3.3B	4.1B	4.71B
Common Stock	359.9M	359.9M	359.9M	359.9M	221.55M	221.55M	221.55M	221.55M	221.55M	221.55M
Retained Earnings	5.9B	6.12B	6.37B	7.03B	1.29B	1.93B	2.72B	3.59B	4.56B	5.7B
Treasury Stock	-5.67B	-6.18B	-6.43B	-6.62B	-591.04M	-768.99M	-1.2B	-1.56B	-1.8B	-2.28B
Accumulated OCI	-371.02M	-375.89M	-313.75M	-356.78M	-323.97M	-338.08M	-249.22M	-252.33M	-230.08M	-303.89M
Minority Interest	49.47M	41.83M	16.23M	8.54M	5.77M	3.53M	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.21B	983.48M	1.25B	1.6B	1.76B	1.7B	2.08B	2.33B	2.32B	2.53B
Operating CF Margin %	0.16%	0.13%	0.17%	0.21%	0.22%	0.21%	0.23%	0.22%	0.21%	0.23%
Operating CF Growth %	0.45%	-0.19%	0.27%	0.28%	0.1%	-0.04%	0.23%	0.12%	-0%	0.09%
Net Income	512.95M	720.04M	756.54M	1.17B	1.15B	1.28B	1.48B	1.64B	1.86B	2.22B
Depreciation & Amortization	244.93M	301.84M	261.85M	295.14M	291.54M	294.91M	315M	378.96M	419.81M	455.25M
Stock-Based Compensation	51.53M	54.78M	51.06M	49.29M	51.9M	57.58M	66.71M	65.99M	81.02M	44.41M
Deferred Taxes	-38.54M	-38.1M	18.58M	36.26M	-15.07M	26.88M	13.37M	36.89M	16.23M	73.23M
Other Non-Cash Items	273.17M	8.65M	295.78M	119.47M	200.23M	236.52M	158.67M	230.56M	286.19M	-209.48M
Working Capital Changes	170.41M	-63.75M	-134.3M	-71.22M	88.52M	-191.65M	46.31M	-29.38M	-341.86M	-53.06M
Change in Receivables	-24.44M	21.1M	-6.88M	8.59M	40.25M	-55.54M	-14.64M	-38.16M	-102.08M	4.46M
Change in Inventory	52.05M	13.96M	-71.4M	-12.75M	-21.19M	-151.92M	21.46M	-186.96M	-157.15M	68.83M
Change in Payables	-1.02M	-72.3M	-52.96M	-100.25M	41.1M	41.47M	39.73M	216.48M	50.23M	28.9M
Cash from Investing+	-477.25M	-595.45M	-328.66M	-1.5B	-780.48M	-531.28M	-2.22B	-787.38M	-1.2B	-960.31M
Capital Expenditures	-356.81M	-269.48M	-257.68M	-328.6M	-318.19M	-441.63M	-495.88M	-519.48M	-771.11M	-605.94M
CapEx % of Revenue	0.05%	0.04%	0.03%	0.04%	0.04%	0.05%	0.06%	0.05%	0.07%	0.05%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-355.61M	3.65M	7.61M	49.76M	20.1M	-2.44M	2.54M	7.64M	-261.75M	6.63M
Cash from Financing+	-755.16M	-434.44M	-843.77M	116.11M	-1.08B	-499.23M	-681.14M	-1.42B	-1.15B	-1.3B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-476.13M	-499.48M	-526.27M	-562.52M	-610.31M	-640.73M	-685.99M	-775.03M	-889.07M	-1.08B
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	7.43M	59.07M	63.29M	-8.68M	240.81M	46.37M	33.21M	-35.52M	-8.99M	-18.16M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	857.65M	714M	991.84M	1.27B	1.45B	1.26B	1.59B	1.81B	1.55B	1.93B
FCF Margin %	0.12%	0.1%	0.13%	0.16%	0.18%	0.15%	0.18%	0.17%	0.14%	0.17%
FCF Growth %	0.83%	-0.17%	0.39%	0.28%	0.14%	-0.13%	0.26%	0.14%	-0.14%	0.24%
FCF per Share	3.89	3.32	4.64	6.03	6.86	6.01	7.64	8.75	7.55	9.46
FCF Conversion (FCF/Net Income)	2.37x	1.37x	1.60x	1.36x	1.53x	1.33x	1.41x	1.42x	1.25x	1.14x
Interest Paid	88.45M	90.95M	101.87M	132.49M	139.5M	150.93M	127.73M	131.76M	160.73M	179.78M
Taxes Paid	368.93M	425.54M	351.83M	118.84M	238.07M	215.49M	275.17M	221.32M	303.94M	201.8M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	39.97%	76.8%	89.01%	100.7%	72.94%	64.21%	59.16%	54.31%	50.33%	50.4%
Return on Invested Capital (ROIC)	24.16%	27.27%	28.21%	27.84%	21.75%	22.96%	22.35%	21.52%	22.9%	23.82%
Gross Margin	45.79%	42.6%	45.98%	45.89%	45.36%	45.42%	45.13%	43.18%	44.76%	47.32%
Net Margin	6.94%	9.68%	10.42%	15.11%	14.4%	15.69%	16.47%	15.79%	16.68%	19.83%
Debt / Equity	2.31x	3.60x	3.14x	3.17x	2.57x	2.15x	1.95x	1.55x	1.25x	1.16x
Interest Coverage	12.81x	13.11x	13.13x	11.06x	10.49x	11.62x	15.74x	16.14x	15.86x	16.63x
FCF Conversion	2.37x	1.37x	1.60x	1.36x	1.53x	1.33x	1.41x	1.42x	1.25x	1.14x
Revenue Growth	-0.47%	0.73%	1.01%	3.67%	2.51%	2.05%	10.08%	16.14%	7.16%	0.33%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America Confectionery	-	-	-	7.45B	7.55B	7.63B	7.68B	8.54B	9.12B	9.12B
North America Confectionery Growth	-	-	-	-	1.35%	0.99%	0.70%	11.12%	6.87%	-0.05%
North America Salty Snacks	-	-	-	337.7M	432.3M	520.79M	555.42M	1.03B	1.09B	1.14B
North America Salty Snacks Growth	-	-	-	-	28.01%	20.47%	6.65%	85.34%	6.15%	3.94%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America	6.12B	6.2B	6.26B	6.54B	6.72B	7.04B	7.81B	9.12B	9.75B	9.77B
North America Growth	-	1.31%	1.08%	4.34%	2.86%	4.76%	10.86%	16.82%	6.92%	0.20%
International and Other	1.27B	1.24B	1.25B	1.26B	1.26B	1.11B	1.16B	1.3B	1.41B	1.43B
International and Other Growth	-	-2.10%	0.66%	0.29%	0.66%	-12.40%	5.13%	11.55%	8.82%	1.29%

Frequently Asked Questions

Valuation & Price

The Hershey Company (HSY) has a price-to-earnings (P/E) ratio of 18.4x. This is roughly in line with market averages.

Growth & Financials

The Hershey Company (HSY) reported $11.49B in revenue for fiscal year 2024. This represents a 89% increase from $6.08B in 2011.

The Hershey Company (HSY) grew revenue by 0.3% over the past year. Growth has been modest.

Yes, The Hershey Company (HSY) is profitable, generating $1.36B in net income for fiscal year 2024 (19.8% net margin).

Dividend & Returns

Yes, The Hershey Company (HSY) pays a dividend with a yield of 2.65%. This makes it attractive for income-focused investors.

The Hershey Company (HSY) has a return on equity (ROE) of 50.4%. This is excellent, indicating efficient use of shareholder capital.

The Hershey Company (HSY) generated $2.16B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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