The Hershey CoFRA:HSY +1.53%72 Operating Margin % is 20.83% as of Mar. 2026, which is 4% below its 10-year median of 21.78. GuruFocus rates FRA:HSY with a GF Score™ of 72/100 and a GF Value™ of €191.02 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, The Hershey Co ranks better than 84.57% on this metric.
The Hershey Co operating margin has been in a 5-year decline. The average rate of decline per year is -6.7%.
The historical rank and industry rank for The Hershey Co's Operating Margin % or its related term are showing as below:
FRA:HSY'
s Operating Margin % Range Over the Past 10 Years
Min: 12.5 Med: 21.78 Max: 26.13
Current: 14.37
FRA:HSY's Operating Margin % is ranked better than 84.57% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs FRA:HSY: 14.37
The Hershey Co's 5-Year Average Operating Margin % Growth Rate was -6.70% per year.
The Hershey Co (FRA:HSY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Hershey Co Operating Margin % Related Terms
The Hershey Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for The Hershey Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:HSY vs TR, MDLZ, SOWG: Operating Margin % Comparison
For the Confectioners subindustry, The Hershey Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hershey Co Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Hershey Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Hershey Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hershey Co (FRA:HSY) has a Operating Margin % of 20.83% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Hershey Co and its competitors. This is near median its historical median of 21.78. Over the past decade, The Hershey Co's Operating Margin % has ranged from 12.50 to 26.13. According to the industry distribution chart, The Hershey Co ranks #301 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 15.4%.
Is The Hershey Co's Operating Margin % too high?
The Hershey Co's current Operating Margin % of 20.83% is near median its 10-year median of 21.78. Over the past 10 years, this metric has ranged from a low of 12.50 to a high of 26.13. The Consumer Packaged Goods industry median Operating Margin % is 5.26. The Hershey Co's value of 20.83% is 296% above this industry median. Based on the distribution chart, The Hershey Co ranks #301 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, The Hershey Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Hershey Co's Operating Margin % compare to TR and MDLZ?
According to the Consumer Packaged Goods industry distribution chart, The Hershey Co ranks #301 out of 1951 companies for Operating Margin %. This places The Hershey Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. The Hershey Co's value of 20.83% is 296% above this benchmark. Historically, The Hershey Co's own Operating Margin % has ranged from 12.50 to 26.13 over the past decade. While the company's 10-year median is 21.78 vs. the industry median of 5.26, The Hershey Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hershey Co's current Operating Margin % of 20.83% is 296% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Hershey Co and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hershey Co's current Operating Margin % is 20.83%, which is near median its own 10-year median of 21.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hershey Co stock overvalued right now?
Based on GuruFocus' analysis, The Hershey Co (FRA:HSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €191.02, compared to a current price of €159.55 — trading 16.5% below its estimated fair value. The current Operating Margin % is 20.83%, which is near median its 10-year median of 21.78 and 296% above the Consumer Packaged Goods industry median of 5.26. The Hershey Co's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Hershey Co (FRA:HSY), the current Operating Margin % is 20.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hershey Co (FRA:HSY) Overvalued in 2026?
Based on GuruFocus' analysis, The Hershey Co stock appears to be undervalued.
The current stock price of €159.55 is trading 16.5% below its estimated GF Value™ of €191.02.
GuruFocus considers The Hershey Co to be Modestly Undervalued.
Key valuation signals for FRA:HSY:
Operating Margin %: 20.83% (near median its 10-year median of 21.78)
GF Value™: €191.02 vs. price of €159.55 (16.5% below fair value)
Industry Position: 296% above the Consumer Packaged Goods median (#301 of 1951)
No single metric tells the full story. See the FRA:HSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hershey is a leading US confectionery manufacturer (around a $55 billion market, according to Euromonitor), controlling 35% of the domestic chocolate aisle. Beyond its namesake label, the firm's portfolio has expanded over the last 85 years and now comprises 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the US, including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confectionery business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its portfolio, as well as Pirate Brands, Dot's Pretzels, and LesserEvil over the past few years.
72GF Score
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