HSYNEUTRAL

Return on Equity (ROE)

23.2%

Updated 152h ago

Sector Performance

72th percentile

HSY

23.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity, expressed as a percentage.

At 23.2%, HSY’s ROE is well above the sector median of 13.7%, placing it in the 72nd percentile among peers — meaning it outperforms nearly three-quarters of similar companies. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and the only historical value provided is the current 23.2%. Without a trend, the high current level signals strong earnings efficiency but offers no insight into recent improvement or deterioration. This combination suggests limited incremental risk or opportunity from this metric alone; the elevated ROE supports a favorable profitability profile, but the absence of trend data tempers any strong conclusions. Given the overall NEUTRAL verdict, the strong ROE does not contradict it — it points to a positive fundamental strength, but other factors likely keep the stock rating neutral.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HSY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HSY's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.