Latest Ratios: P/E Ratio 38.5x · EV/EBITDA 20.0x · ROE 18.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $33.9B | $37.0B | $34.5B | $38.3B | $47.8B | $40.2B | $31.9B | $31.0B | $22.6B | $24.3B | $22.3B |
| Enterprise Value | $38.3B | $41.5B | $39.2B | $43.0B | $52.5B | $45.2B | $35.6B | $35.0B | $26.5B | $26.8B | $25.0B |
| P/E Ratio → | 38.45 | 41.93 | 15.48 | 20.58 | 29.09 | 27.21 | 24.93 | 26.92 | 19.21 | 31.01 | 30.97 |
| P/S Ratio | 2.90 | 3.16 | 3.08 | 3.43 | 4.59 | 4.48 | 3.91 | 3.88 | 2.90 | 3.23 | 2.99 |
| P/B Ratio | 7.32 | 7.98 | 7.31 | 9.35 | 14.50 | 14.58 | 14.25 | 17.75 | 16.07 | 26.04 | 26.90 |
| P/FCF | 19.35 | 21.15 | 17.90 | 24.69 | 26.45 | 25.33 | 25.36 | 21.42 | 17.79 | 24.46 | 31.19 |
| P/OCF | 14.86 | 16.24 | 13.61 | 16.50 | 20.55 | 19.30 | 18.77 | 17.56 | 14.13 | 19.42 | 22.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.55 | 3.50 | 3.86 | 5.04 | 5.04 | 4.37 | 4.38 | 3.40 | 3.57 | 3.35 |
| EV / EBITDA | 19.96 | 21.59 | 11.68 | 14.44 | 19.88 | 19.18 | 17.12 | 18.52 | 13.80 | 17.01 | 16.55 |
| EV / EBIT | 27.05 | 28.62 | 14.79 | 18.45 | 25.52 | 23.48 | 21.58 | 22.80 | 17.01 | 22.14 | 20.94 |
| EV / FCF | — | 23.71 | 20.34 | 27.73 | 29.03 | 28.51 | 28.28 | 24.18 | 20.83 | 27.02 | 34.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3% | 33.3% | 47.3% | 44.8% | 43.2% | 45.1% | 45.4% | 45.4% | 45.9% | 46.0% | 42.6% |
| Operating Margin | 12.1% | 12.1% | 25.9% | 22.9% | 21.7% | 22.8% | 21.9% | 20.0% | 20.8% | 17.5% | 16.2% |
| Net Profit Margin | 7.6% | 7.6% | 19.8% | 16.7% | 15.8% | 16.5% | 15.7% | 14.4% | 15.1% | 10.4% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.9% | 18.9% | 50.4% | 50.3% | 54.3% | 59.2% | 64.2% | 72.9% | 100.7% | 89.0% | 76.8% |
| ROA | 6.6% | 6.6% | 17.9% | 16.3% | 15.4% | 15.1% | 14.8% | 14.5% | 17.8% | 14.1% | 13.2% |
| ROIC | 11.5% | 11.5% | 23.8% | 22.9% | 21.5% | 22.3% | 23.0% | 21.7% | 27.8% | 28.2% | 27.3% |
| ROCE | 14.4% | 14.4% | 32.4% | 30.9% | 29.0% | 27.0% | 26.7% | 28.0% | 37.1% | 37.0% | 35.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.17 | 1.17 | 1.16 | 1.25 | 1.55 | 1.95 | 2.15 | 2.57 | 3.17 | 3.14 | 3.60 |
| Debt / EBITDA | 2.81 | 2.81 | 1.62 | 1.72 | 1.94 | 2.28 | 2.32 | 2.37 | 2.32 | 1.85 | 1.98 |
| Net Debt / Equity | — | 0.97 | 1.00 | 1.15 | 1.41 | 1.83 | 1.64 | 2.28 | 2.75 | 2.73 | 3.24 |
| Net Debt / EBITDA | 2.33 | 2.33 | 1.41 | 1.58 | 1.76 | 2.14 | 1.77 | 2.11 | 2.02 | 1.61 | 1.78 |
| Debt / FCF | — | 2.56 | 2.45 | 3.04 | 2.57 | 3.18 | 2.92 | 2.76 | 3.04 | 2.56 | 3.76 |
| Interest Coverage | 6.99 | 6.99 | 15.19 | 14.45 | 14.68 | 14.84 | 10.74 | 10.08 | 10.60 | 12.10 | 12.96 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 0.96 | 0.97 | 0.80 | 0.90 | 1.57 | 1.05 | 0.93 | 0.96 | 0.95 |
| Quick Ratio | 0.72 | 0.72 | 0.64 | 0.52 | 0.44 | 0.50 | 1.06 | 0.65 | 0.60 | 0.60 | 0.56 |
| Cash Ratio | 0.31 | 0.31 | 0.19 | 0.13 | 0.14 | 0.13 | 0.60 | 0.25 | 0.24 | 0.18 | 0.16 |
| Asset Turnover | — | 0.85 | 0.87 | 0.94 | 0.95 | 0.86 | 0.89 | 0.98 | 1.01 | 1.35 | 1.35 |
| Inventory Turnover | 5.46 | 5.46 | 4.71 | 4.60 | 5.05 | 4.98 | 4.61 | 5.35 | 5.37 | 5.39 | 5.73 |
| Days Sales Outstanding | — | 22.77 | 26.08 | 26.93 | 24.91 | 27.32 | 27.55 | 25.98 | 27.83 | 28.57 | 28.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 2.9% | 3.1% | 2.3% | 1.6% | 1.7% | 2.0% | 2.0% | 2.5% | 2.2% | 2.2% |
| Payout Ratio | 122.9% | 122.9% | 48.8% | 47.8% | 47.1% | 46.4% | 50.1% | 53.1% | 47.8% | 67.2% | 69.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 2.4% | 6.5% | 4.9% | 3.4% | 3.7% | 4.0% | 3.7% | 5.2% | 3.2% | 3.2% |
| FCF Yield | 5.2% | 4.7% | 5.6% | 4.1% | 3.8% | 3.9% | 3.9% | 4.7% | 5.6% | 4.1% | 3.2% |
| Buyback Yield | 0.0% | 0.0% | 1.4% | 0.7% | 0.8% | 1.1% | 0.7% | 1.7% | 1.1% | 1.2% | 2.7% |
| Total Shareholder Yield | 3.2% | 2.9% | 4.6% | 3.0% | 2.4% | 2.8% | 2.7% | 3.7% | 3.6% | 3.4% | 4.9% |
| Shares Outstanding | — | $203M | $203M | $206M | $207M | $208M | $209M | $211M | $211M | $214M | $215M |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HSY stock.
The Hershey Company's current P/E ratio is 38.5x. The historical average is 26.8x. This places it at the 87th percentile of its historical range.
The Hershey Company's current EV/EBITDA is 20.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.2x.
The Hershey Company's return on equity (ROE) is 18.9%. The historical average is 52.5%.
Based on historical data, The Hershey Company is trading at a P/E of 38.5x. This is at the 87th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Hershey Company's current dividend yield is 3.20% with a payout ratio of 122.9%.
The Hershey Company has 33.3% gross margin and 12.1% operating margin. Operating margin between 10-20% is typical for established companies.
The Hershey Company's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Cocoa cost margin compression
Metrics are mathematically derived from official filings.
Margin Compression from Cocoa Spike
Gross margin fell from 54.0% in 2024Q4 to 45.3% in 2026Q2, a 870bp decline, while operating margin dropped from 32.5% to 23.1%, reflecting severe input cost inflation.
The sequential recovery from the 30.5% gross margin trough in 2025Q2 to 45.3% in 2026Q2 suggests some pricing and hedging relief, but margins remain well below the 51-54% levels seen in early 2024. This compression appears driven by cocoa and other commodity costs, and the ability to fully offset via price increases may be limited given the Q2 EPS miss. Investors should monitor whether the 23.1% operating margin stabilizes or erodes further as hedges roll off.
Return on Capital Decelerating Sharply
ROIC fell from 8.8% in 2024Q1 to 5.2% in 2026Q2, while ROE dropped from 19.4% to 9.8%, indicating a significant decline in capital efficiency.
The decline in ROIC is driven by margin compression rather than asset turnover, which has remained relatively stable around 0.20-0.23. The gap between ROIC and ROE suggests leverage is amplifying the impact of lower profitability on equity returns. If cocoa costs persist, returns on capital may remain subdued, potentially affecting the company's ability to reinvest at historical rates.
Working Capital Cycle Lengthens
Cash conversion cycle expanded from 66 days in 2024Q1 to 45 days in 2026Q2, but peaked at 92 days in 2024Q2, reflecting volatile inventory and payable management.
The recent improvement in CCC from 75 days in 2025Q2 to 45 days in 2026Q2 is driven by a sharp increase in DPO from 38 to 81 days, suggesting Hershey is stretching supplier payments. However, DIO remains elevated at 95 days, indicating high inventory levels that may be a response to commodity price volatility or seasonal build. The reliance on extended payables may not be sustainable and could strain supplier relationships.
Leverage Elevated but Coverage Improving
D/EBITDA improved from 18.95 in 2025Q2 to 7.23 in 2026Q2, while interest coverage rose from 3.60 to 11.45, indicating reduced debt burden relative to earnings.
The improvement in leverage metrics is partly due to EBITDA recovery from the depressed 2025Q2 levels, but D/E remains around 1.23, which is high for a consumer staples company. The current interest coverage of 11.45 provides a comfortable cushion, but if margins compress further, EBITDA could decline, reversing the recent improvement. The company's ability to service debt appears adequate, but refinancing risk may emerge if rates stay elevated.
Liquidity Thin but Stable
Current ratio improved from 0.96 in 2024Q4 to 1.18 in 2026Q2, but quick ratio remains low at 0.66, indicating heavy reliance on inventory for short-term obligations.
The current ratio above 1.0 suggests Hershey can cover short-term liabilities, but the quick ratio below 0.7 highlights that a significant portion of current assets is tied up in inventory. In a stress scenario, inventory liquidation may be difficult without discounting, potentially straining liquidity. The modest cash balance of $791M provides a limited buffer against a sudden margin shock.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 42.96 is misleading given the depressed earnings from cocoa costs; forward P/E of 22.19 better reflects normalized earnings, but still assumes margin recovery.
Investors often use P/E without adjusting for the commodity cycle, which can distort valuation. Hershey's TTM earnings are artificially low due to the 2025Q2 trough, making the trailing P/E appear expensive. A more appropriate metric is EV/EBITDA on normalized EBITDA, or a mid-cycle earnings estimate that smooths cocoa price volatility. The forward P/E of 22.19 implies the market expects margins to recover, but if cocoa costs remain elevated, even that may be optimistic.