HERBALIFE LTD (HLF)
KYG4412G1010 - Common Stock
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 37 industry peers in the Personal Care Products industry. HLF has an excellent profitability rating, but there are concerns on its financial health. HLF may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HLF was profitable.
In the past year HLF had a positive cash flow from operations.
Each year in the past 5 years HLF has been profitable.
Each year in the past 5 years HLF had a positive operating cash flow.
1.2 Ratios
HLF's Return On Assets of 5.06% is fine compared to the rest of the industry. HLF outperforms 67.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.53%, HLF belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
HLF had an Average Return On Invested Capital over the past 3 years of 24.90%. This is significantly above the industry average of 13.83%.
The last Return On Invested Capital (19.53%) for HLF is well below the 3 year average (24.90%), which needs to be investigated, but indicates that HLF had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROIC | 19.53% |
ROA(3y)10.89%
ROA(5y)11.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)24.56%
1.3 Margins
Looking at the Profit Margin, with a value of 2.81%, HLF is in line with its industry, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Profit Margin of HLF has declined.
With a decent Operating Margin value of 8.11%, HLF is doing good in the industry, outperforming 62.16% of the companies in the same industry.
In the last couple of years the Operating Margin of HLF has declined.
Looking at the Gross Margin, with a value of 76.47%, HLF belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
HLF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.11% | ||
| PM (TTM) | 2.81% | ||
| GM | 76.47% |
OM growth 3Y-9.81%
OM growth 5Y-9.65%
PM growth 3Y-25.24%
PM growth 5Y-14.26%
GM growth 3Y-1.18%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
HLF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HLF has more shares outstanding
Compared to 5 years ago, HLF has less shares outstanding
HLF has a better debt/assets ratio than last year.
2.2 Solvency
HLF has an Altman-Z score of 1.95. This is not the best score and indicates that HLF is in the grey zone with still only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score (1.95) which is comparable to the rest of the industry.
HLF has a debt to FCF ratio of 11.52. This is a negative value and a sign of low solvency as HLF would need 11.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.52, HLF is in line with its industry, outperforming 45.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.52 | ||
| Altman-Z | 1.95 |
ROIC/WACC2.59
WACC7.55%
2.3 Liquidity
HLF has a Current Ratio of 1.10. This is a normal value and indicates that HLF is financially healthy and should not expect problems in meeting its short term obligations.
HLF's Current ratio of 1.10 is on the low side compared to the rest of the industry. HLF is outperformed by 72.97% of its industry peers.
HLF has a Quick Ratio of 1.10. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.70, HLF is doing worse than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
HLF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.81%.
The Earnings Per Share has been decreasing by -5.09% on average over the past years.
Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -2.73% in the last year.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.69% yearly.
EPS 1Y (TTM)-34.81%
EPS 3Y-15.32%
EPS 5Y-5.09%
EPS growth Q2Q-47.17%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y-2.97%
Revenue growth 5Y0.69%
Revenue growth Q2Q2.9%
3.2 Future
Based on estimates for the next years, HLF will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.76% on average per year.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y-5.87%
EPS Next 2Y9.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.69%
Revenue Next 2Y3.11%
Revenue Next 3YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HLF is valuated cheaply with a Price/Earnings ratio of 4.33.
HLF's Price/Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. HLF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.60, which indicates a rather cheap valuation of HLF.
HLF's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 4.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
HLF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLF is cheaper than 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.3 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
HLF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HERBALIFE LTD
NYSE:HLF (5/3/2024, 7:04:00 PM)
After market: 9.35 -0.23 (-2.4%)9.58
+0.2 (+2.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap955.99M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 4.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.11% | ||
| PM (TTM) | 2.81% | ||
| GM | 76.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-34.81%
EPS 3Y-15.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y-2.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y