HELEN OF TROY LTD (HELE) Stock Fundamental Analysis
NASDAQ:HELE - Nasdaq - BMG4388N1065 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HELE. HELE was compared to 64 industry peers in the Household Durables industry. There are concerns on the financial health of HELE while its profitability can be described as average. HELE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HELE had positive earnings in the past year.
In the past year HELE had a positive cash flow from operations.
In the past 5 years HELE has always been profitable.
Each year in the past 5 years HELE had a positive operating cash flow.
1.2 Ratios
HELE's Return On Assets of 3.95% is in line compared to the rest of the industry. HELE outperforms 51.56% of its industry peers.
HELE has a Return On Equity of 7.35%. This is comparable to the rest of the industry: HELE outperforms 45.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.46%, HELE is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HELE is below the industry average of 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.35% | ||
| ROIC | 6.46% |
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
Looking at the Profit Margin, with a value of 6.49%, HELE is in line with its industry, outperforming 56.25% of the companies in the same industry.
HELE's Profit Margin has declined in the last couple of years.
HELE has a better Operating Margin (11.19%) than 70.31% of its industry peers.
In the last couple of years the Operating Margin of HELE has declined.
HELE has a Gross Margin of 47.93%. This is amongst the best in the industry. HELE outperforms 89.06% of its industry peers.
HELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 6.49% | ||
| GM | 47.93% |
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.
The number of shares outstanding for HELE has been reduced compared to 1 year ago.
The number of shares outstanding for HELE has been reduced compared to 5 years ago.
Compared to 1 year ago, HELE has a worse debt to assets ratio.
2.2 Solvency
HELE has an Altman-Z score of 1.85. This is not the best score and indicates that HELE is in the grey zone with still only limited risk for bankruptcy at the moment.
HELE has a Altman-Z score of 1.85. This is in the lower half of the industry: HELE underperforms 68.75% of its industry peers.
HELE has a debt to FCF ratio of 11.03. This is a negative value and a sign of low solvency as HELE would need 11.03 years to pay back of all of its debts.
The Debt to FCF ratio of HELE (11.03) is comparable to the rest of the industry.
HELE has a Debt/Equity ratio of 0.54. This is a neutral value indicating HELE is somewhat dependend on debt financing.
The Debt to Equity ratio of HELE (0.54) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 11.03 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.66
WACC9.86%
2.3 Liquidity
A Current Ratio of 2.00 indicates that HELE should not have too much problems paying its short term obligations.
HELE's Current ratio of 2.00 is on the low side compared to the rest of the industry. HELE is outperformed by 62.50% of its industry peers.
A Quick Ratio of 1.03 indicates that HELE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, HELE perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.28%.
HELE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.99% yearly.
Looking at the last year, HELE shows a decrease in Revenue. The Revenue has decreased by -4.86% in the last year.
HELE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.24% yearly.
EPS 1Y (TTM)-19.28%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-4.9%
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-0.68%
3.2 Future
Based on estimates for the next years, HELE will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.55% on average per year.
Based on estimates for the next years, HELE will show a small growth in Revenue. The Revenue will grow by 2.08% on average per year.
EPS Next Y-24.55%
EPS Next 2Y-10.76%
EPS Next 3Y-12.55%
EPS Next 5YN/A
Revenue Next Year-1.39%
Revenue Next 2Y-0.21%
Revenue Next 3Y2.08%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.71, the valuation of HELE can be described as very cheap.
Based on the Price/Earnings ratio, HELE is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
HELE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 4.92 indicates a rather cheap valuation of HELE.
Based on the Price/Forward Earnings ratio, HELE is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
HELE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.71 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HELE is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HELE is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.38 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
A cheap valuation may be justified as HELE's earnings are expected to decrease with -12.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.76%
EPS Next 3Y-12.55%
5. Dividend
5.1 Amount
HELE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.73
+0.75 (+2.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change0.3%
Ins Owners1.84%
Ins Owner Change6.18%
Market Cap613.19M
Analysts76.36
Price Target65.28 (144.22%)
Short Float %11.5%
Short Ratio3.28
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)1
Avg EPS beat(2)-1.75%
Min EPS beat(2)-4.82%
Max EPS beat(2)1.33%
EPS beat(4)2
Avg EPS beat(4)-7.29%
Min EPS beat(4)-39.07%
Max EPS beat(4)13.41%
EPS beat(8)5
Avg EPS beat(8)-0.2%
EPS beat(12)9
Avg EPS beat(12)1.39%
EPS beat(16)13
Avg EPS beat(16)6.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-8.34%
Max Revenue beat(4)1.46%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)9
Avg Revenue beat(16)3.23%
PT rev (1m)0%
PT rev (3m)-25.36%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-25.94%
EPS NY rev (1m)-10.12%
EPS NY rev (3m)-33.01%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-12.15%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-7.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.71 | ||
| Fwd PE | 4.92 | ||
| P/S | 0.32 | ||
| P/FCF | 7.38 | ||
| P/OCF | 5.42 | ||
| P/B | 0.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)7.2
EY26.94%
EPS(NY)5.43
Fwd EY20.32%
FCF(TTM)3.62
FCFY13.56%
OCF(TTM)4.94
OCFY18.46%
SpS83.16
BVpS73.38
TBVpS-2.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.35% | ||
| ROCE | 8.01% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 19.19% | ||
| OM | 11.19% | ||
| PM (TTM) | 6.49% | ||
| GM | 47.93% | ||
| FCFM | 4.36% |
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-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 11.03 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 54.63% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 42.15% | ||
| Profit Quality | 67.18% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.85 |
F-Score5
WACC9.86%
ROIC/WACC0.66
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)-19.28%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-4.9%
EPS Next Y-24.55%
EPS Next 2Y-10.76%
EPS Next 3Y-12.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-0.68%
Revenue Next Year-1.39%
Revenue Next 2Y-0.21%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
EBIT growth 1Y-13.98%
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-69.14%
FCF growth 3Y9.8%
FCF growth 5Y-19.99%
OCF growth 1Y-63.01%
OCF growth 3Y-7.01%
OCF growth 5Y-16.04%