HERBALIFE LTD (HLF) Stock Fundamental Analysis
NYSE:HLF - New York Stock Exchange, Inc. - KYG4412G1010 - Common Stock - Currency: USD
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 35 industry peers in the Personal Care Products industry. While HLF belongs to the best of the industry regarding profitability, 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.
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
With an excellent Return On Assets value of 11.88%, HLF belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of HLF (26.65%) is better than 94.29% of its industry peers.
HLF had an Average Return On Invested Capital over the past 3 years of 21.47%. This is significantly above the industry average of 13.78%.
The 3 year average ROIC (21.47%) for HLF is below the current ROIC(26.65%), indicating increased profibility in the last year.
| 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 74.29% of the companies in the same industry.
HLF's Profit Margin has declined in the last couple of years.
HLF's Operating Margin of 12.68% is fine compared to the rest of the industry. HLF outperforms 74.29% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 78.12%, HLF belongs to the top of the industry, outperforming 94.29% 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 | 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.
Compared to 1 year ago, HLF has more shares outstanding
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
HLF has an Altman-Z score of 2.36. 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's Altman-Z score of 2.36 is on the low side compared to the rest of the industry. HLF is outperformed by 60.00% 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.
HLF has a Debt to FCF ratio (12.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Altman-Z | 2.36 |
ROIC/WACC3.81
WACC6.99%
2.3 Liquidity
A Current Ratio of 1.01 indicates that HLF should not have too much problems paying its short term obligations.
HLF's Current ratio of 1.01 is on the low side compared to the rest of the industry. HLF is outperformed by 74.29% of its industry peers.
A Quick Ratio of 0.54 indicates that HLF may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, HLF is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.65% over the past year.
HLF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.08% yearly.
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
Based on estimates for the next years, HLF will show a very strong growth in Earnings Per Share. The EPS will grow by 21.52% on average per year.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y8.68%
EPS Next 2Y15.81%
EPS Next 3Y21.52%
EPS Next 5YN/A
Revenue Next Year-0.34%
Revenue Next 2Y1.93%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 4.53, the valuation of HLF can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.93. HLF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.64, the valuation of HLF can be described as very cheap.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 3.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.68 | ||
| EV/EBITDA | 3.72 |
4.3 Compensation for Growth
HLF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HLF may justify a higher PE ratio.
HLF's earnings are expected to grow with 21.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y15.81%
EPS Next 3Y21.52%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:HLF (8/15/2025, 2:17:03 PM)
9.565
+0.21 (+2.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners105.01%
Inst Owner Change0.51%
Ins Owners2.11%
Ins Owner Change0.33%
Market Cap974.20M
Analysts50.91
Price Target9.18 (-4.03%)
Short Float %13.23%
Short Ratio7.54
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)12.5%
PT rev (3m)12.5%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)0%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 3.64 | ||
| P/S | 0.2 | ||
| P/FCF | 5.68 | ||
| P/OCF | 3.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.72 |
EPS(TTM)2.11
EY22.06%
EPS(NY)2.63
Fwd EY27.48%
FCF(TTM)1.68
FCFY17.59%
OCF(TTM)2.6
OCFY27.23%
SpS48.39
BVpS-6.49
TBVpS-10.58
PEG (NY)0.52
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
WACC6.99%
ROIC/WACC3.81
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 Y8.68%
EPS Next 2Y15.81%
EPS Next 3Y21.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-1.72%
Revenue Next Year-0.34%
Revenue Next 2Y1.93%
Revenue Next 3Y3.82%
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%