Aureus
AExcellent

The Hershey Company(HSY)

A

Financial data as of Dec 31, 2025Improving · Consumer Staples

FCF Margin14.4%Free Cash Flow / Revenue
Cash Conversion257.8%Operating CF / Net Income
Free Cash Flow$1.7B
Revenue$11.7B
Net Cash-$4.8BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.19Adequate short-term liquidity
YoY FCF Growth+100.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (14.4%, 3.4x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (14.4%)
  • Excellent cash conversion (258%)
  • Strong YoY FCF growth (+100.0%)

Concerns

  • Net debt position ($4.8B) — 3.4x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.4%
Net Margin7.6%
Operating CF Margin19.5%
CapEx Ratio4.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$4.8BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.19Adequate liquidity
Debt / Equity1.24Moderate leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameThe Hershey Company
SectorConsumer Staples
Free Cash Flow$1.7B
Revenue$11.7B
Net Income$883.3M
Operating Cash Flow$2.3B
Capital Expenditure$528.2M
FCF Margin14.4%
Cash Conversion Rate257.8%
Net Margin7.6%
Total Debt$5.7B
Total Cash$925.9M
Net Cash-$4.8B
Current Ratio1.19
Debt / Equity1.24
Debt / FCF3.4x
YoY FCF Growth+100.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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