HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
8.75 USD
+0.06 (+0.69%)
8.75 USD
0 (0%)
Taking everything into account, HLF scores 5 out of 10 in our fundamental rating. HLF was compared to 33 industry peers in the Personal Care Products industry. While HLF has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF.
1. Profitability
1.1 Basic Checks
HLF had positive earnings in the past year.
In the past year HLF had a positive cash flow from operations.
HLF had positive earnings in each of the past 5 years.
In the past 5 years HLF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.88%, HLF belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
The Return On Invested Capital of HLF (26.65%) is better than 93.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLF is significantly above the industry average of 12.77%.
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
HLF has a better Profit Margin (6.59%) than 72.73% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 12.68%, HLF is doing good in the industry, outperforming 75.76% of the companies in the same industry.
HLF's Operating Margin has declined in the last couple of years.
HLF has a Gross Margin of 78.12%. This is amongst the best in the industry. HLF outperforms 90.91% of its industry peers.
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.
Compared to 1 year ago, HLF has more shares outstanding
HLF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.35 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score (2.35) which is comparable to the rest of the industry.
HLF has a debt to FCF ratio of 12.49. This is a negative value and a sign of low solvency as HLF would need 12.49 years to pay back of all of its debts.
HLF has a Debt to FCF ratio (12.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Altman-Z | 2.35 |
ROIC/WACC3.87
WACC6.88%
2.3 Liquidity
A Current Ratio of 1.01 indicates that HLF should not have too much problems paying its short term obligations.
HLF has a worse Current ratio (1.01) than 78.79% of its industry peers.
A Quick Ratio of 0.54 indicates that HLF may have some problems paying its short term obligations.
HLF's Quick ratio of 0.54 is on the low side compared to the rest of the industry. HLF is outperformed by 84.85% of its industry peers.
| 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.
Measured over the past years, HLF shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.08% on average per year.
HLF shows a decrease in Revenue. In the last year, the revenue decreased by -2.25%.
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 21.90% on average per year.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.70% yearly.
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.
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
Based on the Price/Earnings ratio of 4.15, the valuation of HLF can be described as very cheap.
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 (27.57), we can say HLF is valued rather cheaply.
HLF is valuated cheaply with a Price/Forward Earnings ratio of 3.26.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
HLF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 3.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 93.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 3.64 |
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.
A more expensive valuation may be justified as HLF's earnings are expected to grow with 21.90% in the coming years.
PEG (NY)0.42
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 |
8.75
+0.06 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change-0.2%
Ins Owners1.96%
Ins Owner Change0.5%
Market Cap902.21M
Revenue(TTM)4.93B
Net Income(TTM)325.00M
Analysts50.91
Price Target9.52 (8.8%)
Short Float %11.54%
Short Ratio6.66
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)0%
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%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 3.26 | ||
| P/S | 0.18 | ||
| P/FCF | 5.26 | ||
| P/OCF | 3.4 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.64 |
EPS(TTM)2.11
EY24.11%
EPS(NY)2.68
Fwd EY30.65%
FCF(TTM)1.66
FCFY19%
OCF(TTM)2.57
OCFY29.41%
SpS47.8
BVpS-6.41
TBVpS-10.45
PEG (NY)0.42
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y-11.83%
ROICexgc 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 | 2.35 |
F-Score6
WACC6.88%
ROIC/WACC3.87
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 Year38.39%
EBIT Next 3Y16.92%
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%