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Hershey Co
🇺🇸 HSY · NYSE/NASDAQ
Consumer
Price at analysis: USD 162.94 Current price: USD 169.40 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 6.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
Latest quarter (2026-06-30): 6.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
32.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.51%
TTM: 3.51%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.51%
Trailing Yield (TTM, last 12 months): 3.51%
Payout Ratio (Fwd)
78.9% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 14 Aug 2027 | — | USD | 1.452 |
| Forecast* | Quarterly | — | 15 May 2027 | — | USD | 1.452 |
| Forecast* | Quarterly | — | 17 Feb 2027 | — | USD | 1.452 |
| Forecast* | Quarterly | — | 17 Nov 2026 | — | USD | 1.37 |
| Paid | Quarterly | 29 Jul 2026 | 14 Aug 2026 | 15 Sep 2026 | USD | 1.452 |
| Paid | Quarterly | 29 Apr 2026 | 15 May 2026 | 15 Jun 2026 | USD | 1.452 |
| Paid | Quarterly | 04 Feb 2026 | 17 Feb 2026 | 16 Mar 2026 | USD | 1.452 |
| Paid | Quarterly | 29 Oct 2025 | 17 Nov 2025 | 15 Dec 2025 | USD | 1.37 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Hershey boasts an exceptional consumer moat, pristine cash flow dividend coverage, and a historically attractive 3.51% yield despite temporary margin compression. However, with a TTM P/E above 22x, the valuation is not yet a compelling bargain for new capital. Existing holders should maintain positions while waiting for a more favorable entry multiple.
Sector Context
Hershey operates in the Consumer Staples sector as a dominant confectioner. For DGI, this is a highly defensive, essential-like category where historic brand equity and oligopolistic market structures form a durable, strategy-aligned moat.
Temporary Opportunity Identified
Margin compression and EPS decline driven by unprecedented cyclical spikes in cocoa prices combined with inflationary pressures dampening consumer candy spending. The core brand moat remains highly durable.
📊 Strategy Analysis
- • Formidable brand moat and pricing power in the consumer staples sector, further protected by capital-intensive EUDR traceability regulations that disproportionately impact unbranded competitors.
- • Immaculate free cash flow dividend coverage (2.28x) with a safe 42.04% cash payout ratio, nullifying concerns over the temporarily inflated earnings payout ratio (123%).
- • Favorable legal resolutions, including the dismissal of TVPRA supply chain litigation and the narrowing/dismissal of heavy metal class actions, removing significant structural overhangs.
- • Attractive 3.51% yield, which sits at roughly 138% of its 5-year average, supported by consecutive double-digit dividend raises (23.0% in 2024).
⚠ What to Watch
- • Valuation remains stretched for new capital deployment with a TTM P/E of 22.31x, capping the Opportunity score.
- • Significant net margin contraction (7.5% vs 15.3% 5-year average) and EPS decline (-9.4% 5Y CAGR) driven by cyclical cocoa costs and softer consumer demand.
- • Ongoing nuisance litigation, including PFAS packaging claims and a wrongful death suit regarding the discontinued Paqui product line.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-31
Disclaimer: This information is for educational purposes only. Not financial advice.