>
Switch to:

The Hershey Co Operating Margin %

: 23.01% (As of Jun. 2021)
View and export this data going back to 1947. Start your Free Trial

Operating Margin % is calculated as Operating Income divided by its Revenue. The Hershey Co's Operating Income for the three months ended in Jun. 2021 was $458 Mil. The Hershey Co's Revenue for the three months ended in Jun. 2021 was $1,989 Mil. Therefore, The Hershey Co's Operating Margin % for the quarter that ended in Jun. 2021 was 23.01%.

Good Sign:

The Hershey Co operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for The Hershey Co's Operating Margin % or its related term are showing as below:

NYSE:HSY' s Operating Margin % Range Over the Past 10 Years
Min: 17.18   Med: 19.25   Max: 22.21
Current: 23.56

17.18
22.21

NYSE:HSY's Operating Margin % is ranked higher than
91% of the 171 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 5.69 vs. NYSE:HSY: 23.56 )

The Hershey Co's 5-Year Average Operating Margin % Growth Rate was 4.30% per year.

The Hershey Co's Operating Income for the three months ended in Jun. 2021 was $458 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $2,048 Mil.


The Hershey Co Operating Margin % Historical Data

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.

* Premium members only.

The Hershey Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.18 20.89 21.83 21.49 22.21

The Hershey Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.47 27.54 19.41 24.14 23.01

Competitive 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 % Distribution

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.



The Hershey Co Operating Margin % Calculation

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. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=1810.344 / 8149.719
=22.21 %

The Hershey Co's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=457.816 / 1989.422
=23.01 %

* 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  (NYSE: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 Nokia’s 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

Thank you for viewing the detailed overview of The Hershey Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Hershey Co Business Description

The Hershey Co logo
Industry
Traded in Other Exchanges
Address
19 East Chocolate Avenue, Hershey, PA, USA, 17033
Hershey is a leading confectionery manufacturer in the U.S. (nearly a $25 billion market), controlling around 46% of the domestic chocolate space (per IRI). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 90 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 85 countries, with just 10% of total sales coming from markets outside the U.S., including Brazil, China, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix and Pirate Brands (including the Pirate's Booty, Smart Puffs, and Original Tings brands) over the past few years.
Executives
Atkins Damien officer: SVP, GC and Secretary THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Arway Pamela M director 601 HAWAII ST. EL SEGUNDO CA 90245
Katzman James C director 6000 N. HOMESTEAD LANE PARADISE VALLEY AZ 85253
Palmer Anthony J. director P.O. BOX 619100 DALLAS TX 75261-9100
Davis Charles A director 1 CAPE MAY ST 1 CAPE MAY ST HARRISON NJ 07029
Dutkowsky Robert M director JD EDWARDS & CO ONE TECHNOLOGY WAY DENVER CO 80237
Haben Mary Kay director C/O EQUITY RESIDENTIAL TWO NORTH RIVERSIDE PLAZA, SUITE 400 CHICAGO IL 60606
Brown James W director FRANKLIN SQUARE CAPITAL PARTNERS 201 ROUSE BLVD. PHILADELPHIA PA 19112
Schoppert Wendy Lee director 6105 TRENTON LANE NORTH MINNEAPOLIS MN 55442
Shedlarz David L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHEDLARZ DAVID L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Malcolm Robert director C/O LOGITECH INTERNATIONAL S.A. RUE DU SABLON 2-4 MORGES V8 1110
Perez Juan R. director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Koken Mary Diane director THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Crawford Victor L. director C/O THE PEPSI BOTTLING GROUP, INC. ONE PEPSI WAY SOMERS NY 10589
Buck Michele director, officer: Chairman, President and CEO THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033

The Hershey Co Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)