Hershey is a steady performer. For 2017, net sales increased 1.0%, including the impact of acquisitions and foreign currency exchange rates. GAAP EPS came in at $3.66 and $4.76 adjusted. 2018 has gotten off to a decent start too. Net sales increased 4.9% versus the first quarter of 2017 (this increase would have been 1% when adjusted for acquisitions and exchange rates). Adjusted EPS was $1.41, an increase of 8.5% versus 2017.

Hershey does have some issues with leverage after the acquisition of Amplify. That deal was mostly funded with debt, which has led to a large negative net cash position and a weak current ratio. The good news is the company does produce excess free cash flow after the dividend, so it can work this down if it chooses to do so.

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