The Hershey Company (HSY) Financial Ratios
30 years of historical data (1996–2025) · Consumer Defensive · Food Confectioners
EV/EBITDA
↑
27.24
↑+45% vs avg
5yr avg: 18.76
30Y Low10.0·High28.6
P/FCF
↓
20.00
↓-13% vs avg
5yr avg: 23.10
30Y Low8.9·High60.9
P/B Ratio
↓
7.57
↓-30% vs avg
5yr avg: 10.74
30Y Low5.9·High26.9
ROE
↓
18.9%
↑-59% vs avg
5yr avg: 46.6%
30Y Low18%·High101%
Debt/EBITDA
↑
3.73
↑+65% vs avg
5yr avg: 2.26
30Y Low1.0·High3.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HSY Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Hershey Company trades at 39.8x earnings, 48% above its 5-year average of 26.9x, sitting at the 90th percentile of its historical range. Compared to the Consumer Defensive sector median P/E of 18.8x, the stock trades at a premium of 112%. On a free-cash-flow basis, the stock trades at 20.0x P/FCF, 13% below the 5-year average of 23.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $35.0B | $37.0B | $34.5B | $38.3B | $47.8B | $40.2B | $31.9B | $31.0B | $22.6B | $24.3B | $22.3B |
| Enterprise Value | $39.5B | $41.5B | $39.2B | $43.0B | $52.5B | $45.2B | $35.6B | $35.0B | $26.5B | $26.8B | $25.0B |
| P/E Ratio → | 39.78 | 41.93 | 15.48 | 20.58 | 29.09 | 27.21 | 24.93 | 26.92 | 19.21 | 31.01 | 30.97 |
| P/S Ratio | 2.99 | 3.16 | 3.08 | 3.43 | 4.59 | 4.48 | 3.91 | 3.88 | 2.90 | 3.23 | 2.99 |
| P/B Ratio | 7.57 | 7.98 | 7.31 | 9.35 | 14.50 | 14.58 | 14.25 | 17.75 | 16.07 | 26.04 | 26.90 |
| P/FCF | 20.00 | 21.15 | 17.90 | 24.69 | 26.45 | 25.33 | 25.36 | 21.42 | 17.79 | 24.46 | 31.19 |
| P/OCF | 15.36 | 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
HSY EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Hershey Company's enterprise value stands at 27.2x EBITDA, 45% above its 5-year average of 18.8x. The Consumer Defensive sector median is 11.0x, placing the stock at a 148% premium on an enterprise-value basis.
| 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 | 27.24 | 28.62 | 11.68 | 14.44 | 19.88 | 19.18 | 17.12 | 18.52 | 13.80 | 17.01 | 16.55 |
| EV / EBIT | 27.85 | 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 |
HSY Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Hershey Company earns an operating margin of 12.1%, above the Consumer Defensive sector average of 3.5%. Operating margins have compressed from 22.9% to 12.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 18.9% indicates solid capital efficiency, compared to the sector median of 6.5%. ROIC of 11.5% represents solid returns on invested capital versus a sector median of 5.7%.
Margins
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% |
Return on Capital
| 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% |
HSY Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Hershey Company carries a Debt/EBITDA ratio of 3.7x, which is moderately leveraged (7% above the sector average of 3.5x). Net debt stands at $4.5B ($5.4B total debt minus $926M cash). Interest coverage of 7.0x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 | 3.73 | 3.73 | 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 | 3.09 | 3.09 | 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 |
HSY Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.19x means The Hershey Company can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.72x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 0.97x to 1.19x over the past 3 years.
| 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 |
HSY Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Hershey Company returns 3.1% to shareholders annually primarily through dividends. The payout ratio exceeds 100% at 122.9%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 2.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 3.1% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 2.4% | 6.5% | 4.9% | 3.4% | 3.7% | 4.0% | 3.7% | 5.2% | 3.2% | 3.2% |
| FCF Yield | 5.0% | 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 | 3.1% | 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 |
Peer Comparison
Compare HSY with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HSYYou | $35B | 39.8 | 27.2 | 20.0 | 33.3% | 12.1% | 18.9% | 11.5% | 3.7 |
 MDLZ | $77B | 31.8 | 19.6 | 23.9 | 28.0% | 9.4% | 9.3% | 6.0% | 4.5 |
 TR | $3B | 26.5 | 21.4 | 28.3 | 35.5% | 14.0% | 11.0% | 9.8% | 0.1 |
 RMCF | $12M | -2.7 | — | — | 10.2% | -13.0% | -74.7% | -21.2% | — |
 MKC | $12B | 15.9 | 11.9 | 16.0 | 37.9% | 16.0% | 14.2% | 8.5% | 3.0 |
 GIS | $18B | 8.2 | 8.5 | 7.8 | 34.6% | 17.0% | 24.3% | 10.6% | 4.0 |
 CPB | $6B | 10.5 | 7.5 | 8.9 | 30.4% | 13.2% | 15.6% | 9.1% | 4.0 |
 SJM | $12B | -85.3 | 33.0 | 10.2 | 33.5% | 4.0% | -2.4% | 2.1% | 12.4 |
 K | $29B | 21.5 | 15.5 | 25.6 | 36.9% | 14.7% | 37.0% | 14.7% | 2.8 |
 CAG | $6B | 5.5 | 8.3 | 4.8 | 25.9% | 11.8% | 12.9% | 6.0% | 4.7 |
 ADM | $36B | 33.7 | 16.7 | 8.6 | 6.3% | 1.8% | 4.7% | 3.3% | 3.2 |
| Consumer Defensive Median | — | 18.8 | 11.0 | 15.3 | 40.8% | 3.5% | 6.5% | 5.7% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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HSY — Frequently Asked Questions
Quick answers to the most common questions about buying HSY stock.
What is The Hershey Company's P/E ratio?
The Hershey Company's current P/E ratio is 39.8x. The historical average is 26.8x. This places it at the 90th percentile of its historical range.
What is The Hershey Company's EV/EBITDA?
The Hershey Company's current EV/EBITDA is 27.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
What is The Hershey Company's ROE?
The Hershey Company's return on equity (ROE) is 18.9%. The historical average is 52.5%.
Is HSY stock overvalued?
Based on historical data, The Hershey Company is trading at a P/E of 39.8x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Hershey Company's dividend yield?
The Hershey Company's current dividend yield is 3.09% with a payout ratio of 122.9%.
What are The Hershey Company's profit margins?
The Hershey Company has 33.3% gross margin and 12.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Hershey Company have?
The Hershey Company's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.