Hershey
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/4
| Measure | HSY | Checked against | |
|---|---|---|---|
| Owner earnings | $932.34m | positive | ✓ |
| Return on equity | 19.0% | median 11.7% | ✓ |
| Debt to equity | 1.01x | median 0.79x | ✗ |
| Operating margin | 12.3% | median 15.0% | ✗ |
Passes 2 of 4. To be clear: Warren Buffett has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | HSY | Checked against | |
|---|---|---|---|
| Return on capital employed | 15.5% | median 10.1% | ✓ |
| Cash conversion | 2.58x | median 1.78x | ✓ |
| Operating margin | 12.3% | median 15.0% | ✗ |
| Debt to equity | 1.01x | median 0.79x | ✗ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 2/3
| Measure | HSY | Checked against | |
|---|---|---|---|
| Return on capital employed | 15.5% | median 10.1% | ✓ |
| Return on equity | 19.0% | median 11.7% | ✓ |
| Operating margin | 12.3% | median 15.0% | ✗ |
Passes 2 of 3. To be clear: Charlie Munger has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 3/4
| Measure | HSY | Checked against | |
|---|---|---|---|
| Return on equity | 19.0% | median 11.7% | ✓ |
| Debt to equity | 1.01x | median 0.79x | ✗ |
| Cash conversion | 2.58x | median 1.78x | ✓ |
| Return on equity, sustained | 10 of 10 | 8 of 10 above median | ✓ |
Passes 3 of 4. To be clear: Chuck Akre has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 1/4
| Measure | HSY | Checked against | |
|---|---|---|---|
| Operating margin | 12.3% | median 15.0% | ✗ |
| Net margin | 7.6% | median 10.2% | ✗ |
| Return on capital employed | 15.5% | median 10.1% | ✓ |
| Operating margin, held or improving | 12.3% | 10-yr median 20.8% | ✗ |
Passes 1 of 4. To be clear: Philip Fisher has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 0/2
| Measure | HSY | Checked against | |
|---|---|---|---|
| Current ratio | 1.19x | median 1.25x | ✗ |
| Debt to equity | 1.01x | median 0.79x | ✗ |
Passes 0 of 2. To be clear: Walter Schloss has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/3
| Measure | HSY | Checked against | |
|---|---|---|---|
| Current ratio | 1.19x | 2.00x published | ✗ |
| Long-term debt to working capital | 8.11x | 1.00x published | ✗ |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 3. To be clear: Benjamin Graham has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | HSY | Checked against | |
|---|---|---|---|
| Return on capital employed | 15.5% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 0/2
| Measure | HSY | Checked against | |
|---|---|---|---|
| Debt to equity | 1.01x | median 0.79x | ✗ |
| Net margin | 7.6% | median 10.2% | ✗ |
Passes 0 of 2. To be clear: Peter Lynch has never said anything about Hershey. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| Operating cash flow | 47.7% | whyBefore capital spending. |
| Free cash flow | 59.5% | whyAfter maintaining the business. |
No GAAP earnings figure is shown. This company does not report the inputs for it in its XBRL filings — capital expenditure, in particular, is often folded into a single investing total rather than tagged on its own. The figure is absent from the filings, not zero, and inventing one from a balance-sheet movement would be a guess dressed as a measurement.
Spread between highest and lowest: 11.9 percentage points. Same filings, different denominators.
Coverage rating 54 / 100 — Tight. ? Peer standing 26/50Direction 10/30Stability 18/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 59.5% |
| 2024-12-31 | 56.3% |
| 2023-12-31 | 57.3% |
| 2022-12-31 | 42.9% |
| 2021-12-31 | 43.2% |
| 2020-12-31 | 50.9% |
53% of the 38 consumer staples here pay out more.
The arithmetic
- Operating cash flow — dividends paid $1,085m ÷ operating cash flow $2,277m
- Free cash flow — dividends paid $1,085m ÷ (operating cash flow $2,277m − capex $455m)
Where the figures came from
- 10-K filed 2026-02-17 · accession 0001628280-26-008586
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Hershey files. The monthly letter carries what filed, what moved, and one finding computed across every company here.