
The Hershey Company

HSY (The Hershey Company) trades at 3.9x EV/Revenue — attractively valued for a consumer staples company with solid margins (33%) and mature growth profile. The business is approaching profitability at 12% EBIT margins. Forward PE of 25x.
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The Hershey Company is one of America's largest chocolate and confectionery manufacturers, producing iconic brands like Hershey's Kisses, Reese's, Kit Kat, and Twizzlers. They sell their products through retailers, vending machines, and direct-to-consumer channels, generating revenue from both domestic and international candy sales. The company has been satisfying America's sweet tooth for over 125 years and holds leading market positions in chocolate, non-chocolate candy, and salty snacks.
Hershey has delivered consistent mid-single-digit revenue growth over the past five years, driven by strategic acquisitions and portfolio expansion beyond traditional chocolate. The company is capitalizing on the $35+ billion U.S. confectionery market while expanding internationally and into adjacent categories like salty snacks. Innovation in better-for-you products and seasonal offerings continues to drive market share gains.
The company maintains strong gross margins typically in the mid-40% range, supported by premium brand positioning and operational efficiency initiatives. Operating margins have remained relatively stable around 15-18% despite commodity headwinds, demonstrating effective pricing strategies and cost management. Hershey generates robust free cash flow, enabling consistent capital returns to shareholders through dividends and share buybacks.
Hershey competes primarily with Mars and Mondelez in the U.S. confectionery market, where it holds the #1 position in chocolate. The company's competitive moat stems from over a century of brand building, extensive retail relationships, and manufacturing scale advantages. Its iconic brands command premium shelf space and pricing, while continuous innovation helps defend against private label competition.
Without access to recent financial data, Hershey has historically demonstrated resilient performance even during economic uncertainty, as consumers tend to maintain spending on affordable indulgences. The company's diversification into growing categories and international expansion initiatives have been key strategic focuses. Seasonal strength around holidays typically drives quarterly volatility in results.
Analysts generally view Hershey as a stable, defensive consumer staples play with predictable cash flows and strong brand equity. The investment community closely watches the company's ability to balance pricing actions with volume growth amid inflationary pressures. Most analysts appreciate the dividend consistency but debate growth prospects in mature confectionery categories.
Hershey represents a classic defensive consumer staples investment with iconic brands, steady cash flows, and reliable dividend growth, though investors must weigh this stability against limited growth prospects in mature confectionery markets.








| '25E | '26E | '27E | '28E | |
|---|---|---|---|---|
| Revenue | — | $12.2B | $12.5B | $12.9B |
| Growth | — | +2% | +3% | |
| EBITDA | — | $2.8B | $2.8B | $2.9B |
| Growth | — | +2% | +3% | |
| EPS (PF) | — | $8.38 | $9.86 | $11.01 |
| Growth | — |
| +18% |
| +12% |