HELEN OF TROY LTD (HELE) Stock Fundamental Analysis
NASDAQ:HELE - Nasdaq - BMG4388N1065 - Common Stock - Currency: USD
Overall HELE gets a fundamental rating of 4 out of 10. We evaluated HELE against 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
In the past year HELE was profitable.
In the past year HELE had a positive cash flow from operations.
HELE had positive earnings in each of the past 5 years.
In the past 5 years HELE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.95%, HELE perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
With a Return On Equity value of 7.35%, HELE perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
HELE has a Return On Invested Capital (6.46%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HELE is below the industry average of 11.72%.
| 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
HELE's Profit Margin of 6.49% is in line compared to the rest of the industry. HELE outperforms 56.25% of its industry peers.
HELE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.19%, HELE is doing good in the industry, outperforming 70.31% of the companies in the same industry.
In the last couple of years the Operating Margin of HELE has declined.
HELE's Gross Margin of 47.93% is amongst the best of 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.
HELE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HELE has been reduced compared to 5 years ago.
The debt/assets ratio for HELE is higher compared to a year ago.
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.
The Altman-Z score of HELE (1.85) is worse than 68.75% of its industry peers.
The Debt to FCF ratio of HELE is 11.03, which is on the high side as it means it would take HELE, 11.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HELE (11.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.54 indicates that HELE is somewhat dependend on debt financing.
HELE has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: HELE underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 11.03 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.72
WACC9.01%
2.3 Liquidity
HELE has a Current Ratio of 2.00. This is a normal value and indicates that HELE is financially healthy and should not expect problems in meeting 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.
HELE has a Quick Ratio of 1.03. 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 Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for HELE have decreased strongly by -19.28% in the last year.
The Earnings Per Share has been decreasing by -4.99% on average over the past years.
HELE shows a decrease in Revenue. In the last year, the revenue decreased by -4.86%.
The Revenue has been growing slightly by 2.24% on average over the past years.
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
The Earnings Per Share is expected to decrease by -12.55% on average over the next years. This is quite bad
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-16.05%
EPS Next 2Y-3.16%
EPS Next 3Y-12.55%
EPS Next 5YN/A
Revenue Next Year0.31%
Revenue Next 2Y0.97%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
HELE is valuated cheaply with a Price/Earnings ratio of 3.73.
Compared to the rest of the industry, the Price/Earnings ratio of HELE indicates a rather cheap valuation: HELE is cheaper than 95.31% of the companies listed in the same industry.
HELE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
HELE is valuated cheaply with a Price/Forward Earnings ratio of 4.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HELE indicates a rather cheap valuation: HELE is cheaper than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, HELE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.73 | ||
| Fwd PE | 4.45 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than HELE, based on the Enterprise Value to EBITDA ratio.
82.81% of the companies in the same industry are more expensive than HELE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
HELE's earnings are expected to decrease with -12.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.16%
EPS Next 3Y-12.55%
5. Dividend
5.1 Amount
HELE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.89
+0.11 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners107.19%
Inst Owner Change0.3%
Ins Owners1.22%
Ins Owner Change6.03%
Market Cap616.86M
Analysts76.36
Price Target65.28 (142.77%)
Short Float %10.27%
Short Ratio3.25
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)-9.86%
PT rev (3m)-25.36%
EPS NQ rev (1m)-19.31%
EPS NQ rev (3m)-23.48%
EPS NY rev (1m)-22.11%
EPS NY rev (3m)-25.46%
Revenue NQ rev (1m)-2.61%
Revenue NQ rev (3m)-11.51%
Revenue NY rev (1m)-5.02%
Revenue NY rev (3m)-5.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.73 | ||
| Fwd PE | 4.45 | ||
| P/S | 0.32 | ||
| P/FCF | 7.42 | ||
| P/OCF | 5.45 | ||
| P/B | 0.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)7.2
EY26.78%
EPS(NY)6.04
Fwd EY22.48%
FCF(TTM)3.62
FCFY13.48%
OCF(TTM)4.94
OCFY18.35%
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
WACC9.01%
ROIC/WACC0.72
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-16.05%
EPS Next 2Y-3.16%
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 Year0.31%
Revenue Next 2Y0.97%
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%