HSYHSY
US • —
$175.45
P/E
32.66
PEG
—
FCF Yield
—
Rev Growth YoY
+2.8% YoY
Gross Margin
35.0%
Health Score
6/10
D/E Ratio
1.17
Confidence
MEDIUM
Business Snapshot
Hershey Co. is a dominant player in the global confectionery and snack market, generating revenue primarily through the sale of chocolate, sweets, mints, and other grocery products under iconic brands like Hershey's, Reese's, and Kit Kat. This market is mature and relatively defensive, with Hershey holding a leading position in the North American chocolate category. The company is a large-cap staple, though exact market capitalisation and revenue figures are unavailable in the provided data. Its defining characteristic is a powerful brand portfolio with decades of consumer loyalty, creating a durable competitive moat in a stable industry.
Financial Health
Gross margin stands at 35.0% with a net margin of 9.1%. The company maintains a debt-to-equity ratio of 1.17x, indicating a leveraged but manageable balance sheet, while a current ratio of 1.19x points to adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 32.66x is substantially elevated versus the sector average of 22x, leaving little room for error if earnings continue to decline.
- EARNINGS QUALITY — Earnings growth fell by -40.0% year-over-year, a severe deterioration in profitability that warrants further investigation into its causes.
- INSIDER SELLING — Over the last 90 days, 10 insider sells were recorded with no buys, a persistent signal of caution from those with the most intimate knowledge of the company.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- MARGINS — Gross margin of 35.0% combined with a net margin of 9.1% implies significant operating costs, leaving the bottom line vulnerable to input cost inflation....
Gross margin stands at 35.0% with a net margin of 9.1%. The company maintains a debt-to-equity ratio of 1.17x, indicating a leveraged but manageable balance sheet, while a current ratio of 1.19x points to adequate short-term liquidity. Return on equity is exceptionally high at 23.7%, reflecting strong earnings generation relative to shareholder equity. Free cash flow figures are not available, preventing a full assessment of cash generation and reinvestment capacity. Overall, Hershey shows solid profitability and a reasonable leverage profile, typical of a mature consumer staples firm, though the lack of cash flow data is a notable gap.
- VALUATION — P/E of 32.66x is substantially elevated versus the sector average of 22x, leaving little room for error if earnings continue to decline. - EARNINGS QUALITY — Earnings growth fell by -40.0% year-over-year, a severe deterioration in profitability that warrants further investigation into its causes. - INSIDER SELLING — Over the last 90 days, 10 insider sells were recorded with no buys, a persistent signal of caution from those with the most intimate knowledge of the company. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - MARGINS — Gross margin of 35.0% combined with a net margin of 9.1% implies significant operating costs, leaving the bottom line vulnerable to input cost inflation.
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