EQUITY RESEARCH — DEEP DIVE
The Hershey Company (HSY)
Sector: Consumer Staples / Confectionery |
Published: 2026-06-13 |
Pages: 9
Price at publication: $181.66 | Market cap: $37.0B
Themes: Quality Compounder Defensive
Executive Summary
The Hershey Company is the dominant U.S. confectioner—owner of Hershey’s, Reese’s, Kit Kat (U.S. license), Jolly Rancher, Twizzlers, and a fast-growing salty-snacks arm (SkinnyPop, Dot’s Pretzels)—trading at roughly $181.66, about 24% below its 52-week high of $239 and well off the $266 peak of 2023. The investment case is straightforward and, in our view, compelling: 2024–2025 earnings were temporarily crushed by an unprecedented spike in cocoa, which rocketed from roughly $3,000 per tonne to as high as $12,000–$13,000, taking well over 700 basis points off gross margin and cutting adjusted EPS from $9.37 in 2024 to roughly $6.3 in 2025.
What’s Inside The Full Report
- 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
- Valuation framework — current multiples vs. 5-year historical range
- Peer comparison table — multiples, margins, balance-sheet metrics
- Base case, bull case, bear case price targets with explicit math
- Competitive position and economic moat analysis
- Management and capital allocation track record
- Balance sheet review — leverage, credit ratings, distribution coverage
- Insider activity — recent open-market buys / sells with interpretation
- Strategic acquisitions and divestitures history
- Sell-side consensus and where TTCM differs
- Detailed risk factors specific to the name
- Bull case and forward catalysts to watch
- TTCM rating with explicit ADD / TRIM price triggers
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