Aureus
AExcellent

The Hershey Company(HSY)

A

Financial data as of Dec 31, 2024Improving · Consumer Staples

FCF Margin17.2%Free Cash Flow / Revenue
Cash Conversion114.0%Operating CF / Net Income
Free Cash Flow$1.9B
Revenue$11.2B
Net Cash-$4.7BNet debt position
Debt / FCF2.8xManageable debt load
Current Ratio0.96Tight short-term liquidity
YoY FCF Growth+33.3%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 (17.2%, 2.8x)
→
-1Current ratio below 1.0 (0.96)
→
+1Strong YoY FCF growth (33.3% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.2%)
  • Excellent cash conversion (114%)
  • Strong YoY FCF growth (+33.3%)
  • FCF trend is improving

Concerns

  • Net debt position ($4.7B)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.2%
Net Margin19.8%
Operating CF Margin22.6%
CapEx Ratio5.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$4.7BNet debt position
Debt / FCF2.8xManageable debt load
Current Ratio0.96Tight liquidity
Debt / Equity1.16Moderate leverage

Quarterly FCF Trend

+33.3% YoYImproving (+33.3%)

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$1.9B
Revenue$11.2B
Net Income$2.2B
Operating Cash Flow$2.5B
Capital Expenditure$605.9M
FCF Margin17.2%
Cash Conversion Rate114.0%
Net Margin19.8%
Total Debt$5.4B
Total Cash$730.7M
Net Cash-$4.7B
Current Ratio0.96
Debt / Equity1.16
Debt / FCF2.8x
YoY FCF Growth+33.3%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance

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