HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
8.685 USD
+0.07 (+0.75%)
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 33 industry peers in the Personal Care Products industry. HLF scores excellent on profitability, but there are concerns on its financial health. HLF is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years HLF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.88%, HLF belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
HLF has a Return On Invested Capital of 26.65%. This is amongst the best in the industry. HLF outperforms 93.94% 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 12.77%.
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
Looking at the Profit Margin, with a value of 6.59%, HLF is in the better half of the industry, outperforming 72.73% 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 75.76% of its industry peers.
In the last couple of years the Operating Margin of HLF has declined.
HLF has a better Gross Margin (78.12%) than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HLF is creating value.
Compared to 1 year ago, HLF has more shares outstanding
HLF has less shares outstanding than it did 5 years ago.
HLF has a better debt/assets ratio than last year.
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.
The Altman-Z score of HLF (2.35) is comparable to the rest of the industry.
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 of 12.49. This is comparable to the rest of the industry: HLF outperforms 54.55% of 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
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.
The Current ratio of HLF (1.01) is worse than 78.79% 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'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%.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
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
The Price/Earnings ratio is 4.12, which indicates a rather cheap valuation of HLF.
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 27.69. HLF is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 3.24 indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.18. HLF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.12 | ||
| Fwd PE | 3.24 |
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 96.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 3.63 |
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.
The decent profitability rating of HLF may justify a higher PE ratio.
HLF's earnings are expected to grow with 21.90% in the coming years. This may justify a more expensive valuation.
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 |
NYSE:HLF (10/21/2025, 12:53:06 PM)
8.685
+0.07 (+0.75%)
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 Cap895.51M
Analysts50.91
Price Target9.52 (9.61%)
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 | 4.12 | ||
| Fwd PE | 3.24 | ||
| P/S | 0.18 | ||
| P/FCF | 5.22 | ||
| P/OCF | 3.38 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.63 |
EPS(TTM)2.11
EY24.29%
EPS(NY)2.68
Fwd EY30.88%
FCF(TTM)1.66
FCFY19.14%
OCF(TTM)2.57
OCFY29.63%
SpS47.8
BVpS-6.41
TBVpS-10.45
PEG (NY)0.42
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 | 2.35 |
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%