HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
8.87 USD
+0.12 (+1.37%)
8.86 USD
-0.01 (-0.11%)
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 36 industry peers in the Personal Care Products industry. HLF has an excellent profitability rating, but there are concerns on its financial health. HLF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years HLF has always been profitable.
HLF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.88%, HLF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Invested Capital of HLF (26.65%) is better than 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLF is significantly above the industry average of 12.97%.
The last Return On Invested Capital (26.65%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | N/A | ||
| ROIC | 26.65% |
ROA(3y)8.71%
ROA(5y)10.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.47%
ROIC(5y)23.4%
1.3 Margins
With a decent Profit Margin value of 6.59%, HLF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HLF's Profit Margin has declined in the last couple of years.
HLF has a Operating Margin of 12.68%. This is in the better half of the industry: HLF outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of HLF has declined.
Looking at the Gross Margin, with a value of 78.12%, HLF belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Gross Margin of HLF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 6.59% | ||
| GM | 78.12% |
OM growth 3Y-9.16%
OM growth 5Y-4.06%
PM growth 3Y-12.9%
PM growth 5Y-4.4%
GM growth 3Y-0.32%
GM growth 5Y-0.62%
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.
HLF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HLF has less shares outstanding
The debt/assets ratio for HLF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF's Altman-Z score of 2.36 is in line compared to the rest of the industry. HLF outperforms 47.22% of its industry peers.
The Debt to FCF ratio of HLF is 12.49, which is on the high side as it means it would take HLF, 12.49 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.49, HLF perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Altman-Z | 2.36 |
ROIC/WACC3.72
WACC7.16%
2.3 Liquidity
HLF has a Current Ratio of 1.01. This is a normal value and indicates that HLF is financially healthy and should not expect problems in meeting its short term obligations.
HLF has a Current ratio of 1.01. This is in the lower half of the industry: HLF underperforms 75.00% of its industry peers.
HLF has a Quick Ratio of 1.01. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
HLF has a worse Quick ratio (0.54) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
HLF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.65%.
The Earnings Per Share has been decreasing by -7.08% on average over the past years.
The Revenue has decreased by -2.25% in the past year.
Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)7.65%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%9.26%
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-1.72%
3.2 Future
The Earnings Per Share is expected to grow by 21.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y9.81%
EPS Next 2Y16.97%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue Next Year0.28%
Revenue Next 2Y2.38%
Revenue Next 3Y3.7%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLF is valuated cheaply with a Price/Earnings ratio of 4.20.
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.
When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (27.32), we can say HLF is valued rather cheaply.
The Price/Forward Earnings ratio is 3.31, which indicates a rather cheap valuation of HLF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 100.00% of the companies listed in the same industry.
HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.2 | ||
| Fwd PE | 3.31 |
4.2 Price Multiples
97.22% of the companies in the same industry are more expensive than HLF, based on the Enterprise Value to EBITDA ratio.
HLF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLF is cheaper than 97.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.34 | ||
| EV/EBITDA | 3.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLF has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HLF's earnings are expected to grow with 21.90% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y16.97%
EPS Next 3Y21.9%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.87
+0.12 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners105.01%
Inst Owner Change-2.25%
Ins Owners2.11%
Ins Owner Change0.5%
Market Cap914.59M
Analysts50.91
Price Target9.52 (7.33%)
Short Float %11.15%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)55.95%
Min EPS beat(2)52.72%
Max EPS beat(2)59.17%
EPS beat(4)4
Avg EPS beat(4)58.76%
Min EPS beat(4)52.72%
Max EPS beat(4)62.26%
EPS beat(8)6
Avg EPS beat(8)34.13%
EPS beat(12)9
Avg EPS beat(12)27.43%
EPS beat(16)12
Avg EPS beat(16)24.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.12%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.02%
Revenue beat(16)7
Avg Revenue beat(16)-0.19%
PT rev (1m)3.7%
PT rev (3m)16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.2 | ||
| Fwd PE | 3.31 | ||
| P/S | 0.19 | ||
| P/FCF | 5.34 | ||
| P/OCF | 3.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.65 |
EPS(TTM)2.11
EY23.79%
EPS(NY)2.68
Fwd EY30.23%
FCF(TTM)1.66
FCFY18.74%
OCF(TTM)2.57
OCFY29.01%
SpS47.8
BVpS-6.41
TBVpS-10.45
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | N/A | ||
| ROCE | 38.05% | ||
| ROIC | 26.65% | ||
| ROICexc | 33.13% | ||
| ROICexgc | 48.44% | ||
| OM | 12.68% | ||
| PM (TTM) | 6.59% | ||
| GM | 78.12% | ||
| FCFM | 3.48% |
ROA(3y)8.71%
ROA(5y)10.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.47%
ROIC(5y)23.4%
ROICexc(3y)31.31%
ROICexc(5y)37.76%
ROICexgc(3y)50.31%
ROICexgc(5y)62.7%
ROCE(3y)30.65%
ROCE(5y)33.4%
ROICexcg growth 3Y-11.83%
ROICexcg growth 5Y-10.42%
ROICexc growth 3Y-12.15%
ROICexc growth 5Y-7.63%
OM growth 3Y-9.16%
OM growth 5Y-4.06%
PM growth 3Y-12.9%
PM growth 5Y-4.4%
GM growth 3Y-0.32%
GM growth 5Y-0.62%
F-Score6
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 77.73% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.59% | ||
| Profit Quality | 52.74% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.36 |
F-Score6
WACC7.16%
ROIC/WACC3.72
Cap/Depr(3y)118.39%
Cap/Depr(5y)121.51%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.55%
Profit Quality(3y)93.92%
Profit Quality(5y)97.9%
High Growth Momentum
Growth
EPS 1Y (TTM)7.65%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%9.26%
EPS Next Y9.81%
EPS Next 2Y16.97%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-1.72%
Revenue Next Year0.28%
Revenue Next 2Y2.38%
Revenue Next 3Y3.7%
Revenue Next 5YN/A
EBIT growth 1Y53.68%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year37.68%
EBIT Next 3Y19.2%
EBIT Next 5YN/A
FCF growth 1Y9.94%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-13.02%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%