HELEN OF TROY LTD (HELE) Stock Fundamental Analysis
NASDAQ:HELE - Nasdaq - BMG4388N1065 - Common Stock - Currency: USD
HELE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. While HELE is still in line with the averages on profitability rating, there are concerns on its financial health. HELE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
HELE had positive earnings in the past year.
HELE had a positive operating cash flow in the past year.
In the past 5 years HELE has always been profitable.
In the past 5 years HELE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -12.56%, HELE is not doing good in the industry: 84.13% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -27.14%, HELE is doing worse than 84.13% of the companies in the same industry.
HELE has a Return On Invested Capital of 7.07%. This is comparable to the rest of the industry: HELE outperforms 52.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HELE is below the industry average of 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.56% | ||
| ROE | -27.14% | ||
| ROIC | 7.07% |
ROA(3y)4.94%
ROA(5y)6.79%
ROE(3y)9.09%
ROE(5y)12.93%
ROIC(3y)7.78%
ROIC(5y)9.49%
1.3 Margins
HELE's Profit Margin has declined in the last couple of years.
HELE has a better Operating Margin (10.11%) than 60.32% of its industry peers.
In the last couple of years the Operating Margin of HELE has declined.
HELE's Gross Margin of 47.59% is amongst the best of the industry. HELE outperforms 88.89% of its industry peers.
HELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.11% | ||
| PM (TTM) | N/A | ||
| GM | 47.59% |
OM growth 3Y-3.04%
OM growth 5Y-2.95%
PM growth 3Y-13.62%
PM growth 5Y-6.17%
GM growth 3Y3.79%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
HELE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HELE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HELE has less shares outstanding
HELE has a worse debt/assets ratio than last year.
2.2 Solvency
HELE has an Altman-Z score of 1.77. This is a bad value and indicates that HELE is not financially healthy and even has some risk of bankruptcy.
HELE has a Altman-Z score of 1.77. This is in the lower half of the industry: HELE underperforms 71.43% of its industry peers.
The Debt to FCF ratio of HELE is 7.78, which is on the high side as it means it would take HELE, 7.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HELE (7.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.69 indicates that HELE is somewhat dependend on debt financing.
HELE has a Debt to Equity ratio of 0.69. This is in the lower half of the industry: HELE underperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.8
WACC8.83%
2.3 Liquidity
HELE has a Current Ratio of 1.70. This is a normal value and indicates that HELE is financially healthy and should not expect problems in meeting its short term obligations.
HELE has a Current ratio of 1.70. This is in the lower half of the industry: HELE underperforms 69.84% of its industry peers.
HELE has a Quick Ratio of 1.70. This is a bad value and indicates that HELE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HELE (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
HELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.94%.
Measured over the past years, HELE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.99% on average per year.
HELE shows a decrease in Revenue. In the last year, the revenue decreased by -4.35%.
Measured over the past years, HELE shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
EPS 1Y (TTM)-16.94%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-58.59%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-10.84%
3.2 Future
HELE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.49% yearly.
HELE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.02% yearly.
EPS Next Y-26.53%
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue Next Year-6.23%
Revenue Next 2Y-2.34%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.36, the valuation of HELE can be described as very cheap.
Based on the Price/Earnings ratio, HELE is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
HELE is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.98, which indicates a rather cheap valuation of HELE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HELE indicates a rather cheap valuation: HELE is cheaper than 96.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.36. HELE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.36 | ||
| Fwd PE | 3.98 |
4.2 Price Multiples
82.54% of the companies in the same industry are more expensive than HELE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HELE is valued cheaper than 93.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.56 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
A cheap valuation may be justified as HELE's earnings are expected to decrease with -12.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
5. Dividend
5.1 Amount
HELE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.22
-0.53 (-2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change-1.37%
Ins Owners1.84%
Ins Owner Change7.16%
Market Cap510.17M
Analysts76.36
Price Target28.05 (26.24%)
Short Float %13.22%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.77%
Min EPS beat(2)-52.71%
Max EPS beat(2)-4.82%
EPS beat(4)2
Avg EPS beat(4)-10.7%
Min EPS beat(4)-52.71%
Max EPS beat(4)13.41%
EPS beat(8)4
Avg EPS beat(8)-9.22%
EPS beat(12)8
Avg EPS beat(12)-3.77%
EPS beat(16)12
Avg EPS beat(16)1.48%
Revenue beat(2)0
Avg Revenue beat(2)-4.61%
Min Revenue beat(2)-7.92%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-7.92%
Max Revenue beat(4)1.46%
Revenue beat(8)2
Avg Revenue beat(8)-2.43%
Revenue beat(12)4
Avg Revenue beat(12)-1.5%
Revenue beat(16)8
Avg Revenue beat(16)1.42%
PT rev (1m)-57.03%
PT rev (3m)-61.27%
EPS NQ rev (1m)-46.51%
EPS NQ rev (3m)-56.08%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)-31.83%
Revenue NQ rev (1m)-9.15%
Revenue NQ rev (3m)-14.37%
Revenue NY rev (1m)-4.91%
Revenue NY rev (3m)-11.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.36 | ||
| Fwd PE | 3.98 | ||
| P/S | 0.27 | ||
| P/FCF | 4.56 | ||
| P/OCF | 3.49 | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)6.62
EY29.79%
EPS(NY)5.59
Fwd EY25.14%
FCF(TTM)4.88
FCFY21.94%
OCF(TTM)6.37
OCFY28.66%
SpS81.12
BVpS53.47
TBVpS-4.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.56% | ||
| ROE | -27.14% | ||
| ROCE | 8.77% | ||
| ROIC | 7.07% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 19.06% | ||
| OM | 10.11% | ||
| PM (TTM) | N/A | ||
| GM | 47.59% | ||
| FCFM | 6.01% |
ROA(3y)4.94%
ROA(5y)6.79%
ROE(3y)9.09%
ROE(5y)12.93%
ROIC(3y)7.78%
ROIC(5y)9.49%
ROICexc(3y)7.81%
ROICexc(5y)9.62%
ROICexgc(3y)23.08%
ROICexgc(5y)29.38%
ROCE(3y)9.64%
ROCE(5y)11.77%
ROICexcg growth 3Y-15.74%
ROICexcg growth 5Y-12.1%
ROICexc growth 3Y-13.74%
ROICexc growth 5Y-11.08%
OM growth 3Y-3.04%
OM growth 5Y-2.95%
PM growth 3Y-13.62%
PM growth 5Y-6.17%
GM growth 3Y3.79%
GM growth 5Y2.19%
F-Score3
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.78 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 62.02% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.77 |
F-Score3
WACC8.83%
ROIC/WACC0.8
Cap/Depr(3y)172.35%
Cap/Depr(5y)199.35%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.01%
Profit Quality(3y)83.41%
Profit Quality(5y)72.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.94%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-58.59%
EPS Next Y-26.53%
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-10.84%
Revenue Next Year-6.23%
Revenue Next 2Y-2.34%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
EBIT growth 1Y-16.67%
EBIT growth 3Y-7.86%
EBIT growth 5Y-0.78%
EBIT Next Year-1.35%
EBIT Next 3Y-2.33%
EBIT Next 5YN/A
FCF growth 1Y-56.46%
FCF growth 3Y9.8%
FCF growth 5Y-19.99%
OCF growth 1Y-60.23%
OCF growth 3Y-7.01%
OCF growth 5Y-16.04%