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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
The Hershey Co's Sloan Ratio for the quarter that ended in Jun. 2026 was 0.06%.
As of Jun. 2026, The Hershey Co has a Sloan Ratio of 0.06%, indicating the company is in the safe zone and there is no funny business with accruals.
The Hershey Co (NYSE:HSY) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, The Hershey Co has a Sloan Ratio of 0.06%, indicating the company is in the safe zone and there is no funny business with accruals.
The Hershey Co Sloan Ratio % Related Terms
The Hershey Co Sloan Ratio % Historical Data
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The historical data trend for The Hershey Co's Sloan Ratio % 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.
For the Confectioners subindustry, The Hershey Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Hershey Co's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
The Hershey Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
The Hershey Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 276.32 (Sep. 2025 ) + 320.017 (Dec. 2025 ) + 435.105 (Mar. 2026 ) + 457.665 (Jun. 2026 ) = $1,489 Mil.
The Hershey Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 841.916 (Sep. 2025 ) + 926.553 (Dec. 2025 ) + 468.806 (Mar. 2026 ) + 419.316 (Jun. 2026 ) = $2,657 Mil.
The Hershey Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -80.401 (Sep. 2025 ) + -896.535 (Dec. 2025 ) + -117.124 (Mar. 2026 ) + -82.439 (Jun. 2026 ) = $-1,176 Mil.
* 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 (HSY) has a Sloan Ratio % of 0.06% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Hershey Co and its competitors.
Is The Hershey Co's Sloan Ratio % too high?
The Hershey Co's current Sloan Ratio % is 0.06%. Overall, The Hershey Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Hershey Co's Sloan Ratio % compare to TR and SOWG?
The Hershey Co's Sloan Ratio % of 0.06% can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Consumer Packaged Goods company?
A good Sloan Ratio % depends on the Consumer Packaged Goods industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Hershey Co and its competitors. The Hershey Co's current Sloan Ratio % is 0.06%. 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 (HSY) is currently considered Modestly Undervalued. The stock's GF Value™ is $207.48, compared to a current price of $177.67 — trading 14.4% below its estimated fair value. The current Sloan Ratio % is 0.06%. The Hershey Co's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For The Hershey Co (HSY), the current Sloan Ratio % is 0.06% as of Jun. 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 (HSY) Overvalued in 2026?
Based on GuruFocus' analysis, The Hershey Co stock appears to be undervalued.
The current stock price of $177.67 is trading 14.4% below its estimated GF Value™ of $207.48.
GuruFocus considers The Hershey Co to be Modestly Undervalued.
Key valuation signals for HSY:
Sloan Ratio %: 0.06%
GF Value™: $207.48 vs. price of $177.67 (14.4% below fair value)
No single metric tells the full story. See the 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.
74GF Score
Get the complete analysis for HSY
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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