HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
11.99 USD
+2.35 (+24.38%)
12 USD
+0.01 (+0.08%)
We assign a fundamental rating of 5 out of 10 to HLF. HLF was compared to 34 industry peers in the Personal Care Products industry. While HLF has a great profitability rating, there are quite some 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.
In the past 5 years HLF has always been profitable.
In the past 5 years HLF always reported a positive cash flow from operatings.
1.2 Ratios
HLF's Return On Assets of 11.89% is amongst the best of the industry. HLF outperforms 88.24% of its industry peers.
HLF has a better Return On Invested Capital (25.82%) than 94.12% 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 12.51%.
The 3 year average ROIC (21.47%) for HLF is below the current ROIC(25.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.89% | ||
| ROE | N/A | ||
| ROIC | 25.82% |
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 (6.46%) than 76.47% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
HLF's Operating Margin of 12.61% is fine compared to the rest of the industry. HLF outperforms 76.47% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 77.96%, HLF belongs to the best of the industry, outperforming 91.18% 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 | 12.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 77.96% |
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
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
The debt/assets ratio for HLF has been reduced compared to a year ago.
2.2 Solvency
HLF has an Altman-Z score of 2.49. 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 (2.49) which is comparable to the rest of the industry.
The Debt to FCF ratio of HLF is 9.30, which is on the high side as it means it would take HLF, 9.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HLF (9.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.49 |
ROIC/WACC3.78
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HLF should not have too much problems paying its short term obligations.
HLF has a worse Current ratio (1.11) than 82.35% of its industry peers.
A Quick Ratio of 0.59 indicates that HLF may have some problems paying its short term obligations.
HLF has a worse Quick ratio (0.59) than 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
HLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.51%, which is quite good.
The Earnings Per Share has been decreasing by -7.08% on average over the past years.
Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -0.78% in the last year.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
EPS 1Y (TTM)8.51%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%-12.28%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%2.69%
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.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y7.91%
EPS Next 2Y15.23%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue Next Year0.38%
Revenue Next 2Y2.43%
Revenue Next 3Y3.71%
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
With a Price/Earnings ratio of 5.88, the valuation of HLF can be described as very cheap.
Based on the Price/Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
HLF is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.61 indicates a rather cheap valuation of HLF.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Forward Earnings ratio.
HLF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 94.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaper than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.7 | ||
| 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.
HLF has a very decent profitability rating, which 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)0.74
PEG (5Y)N/A
EPS Next 2Y15.23%
EPS Next 3Y21.9%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.99
+2.35 (+24.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change-2.4%
Ins Owners1.96%
Ins Owner Change-0.91%
Market Cap1.24B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts50.91
Price Target9.52 (-20.6%)
Short Float %11.94%
Short Ratio8.48
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)30.05%
Min EPS beat(2)7.39%
Max EPS beat(2)52.72%
EPS beat(4)4
Avg EPS beat(4)45.38%
Min EPS beat(4)7.39%
Max EPS beat(4)62.26%
EPS beat(8)7
Avg EPS beat(8)36.5%
EPS beat(12)9
Avg EPS beat(12)26.94%
EPS beat(16)12
Avg EPS beat(16)24.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0%
PT rev (3m)3.7%
EPS NQ rev (1m)-11.22%
EPS NQ rev (3m)37.63%
EPS NY rev (1m)-1.74%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.25 | ||
| P/FCF | 5.7 | ||
| P/OCF | 4.06 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.63 |
EPS(TTM)2.04
EY17.01%
EPS(NY)2.6
Fwd EY21.71%
FCF(TTM)2.1
FCFY17.55%
OCF(TTM)2.95
OCFY24.64%
SpS48.12
BVpS-5.94
TBVpS-9.98
PEG (NY)0.74
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.89% | ||
| ROE | N/A | ||
| ROCE | 36.85% | ||
| ROIC | 25.82% | ||
| ROICexc | 31.48% | ||
| ROICexgc | 44.93% | ||
| OM | 12.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 77.96% | ||
| FCFM | 4.37% |
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-Score7
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 72.46% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.81% | ||
| Profit Quality | 67.66% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.49 |
F-Score7
WACC6.83%
ROIC/WACC3.78
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)8.51%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%-12.28%
EPS Next Y7.91%
EPS Next 2Y15.23%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%2.69%
Revenue Next Year0.38%
Revenue Next 2Y2.43%
Revenue Next 3Y3.71%
Revenue Next 5YN/A
EBIT growth 1Y48.57%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year38.39%
EBIT Next 3Y16.92%
EBIT Next 5YN/A
FCF growth 1Y25.8%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-3.3%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%
HERBALIFE LTD / HLF FAQ
Can you provide the ChartMill fundamental rating for HERBALIFE LTD?
ChartMill assigns a fundamental rating of 5 / 10 to HLF.
What is the valuation status of HERBALIFE LTD (HLF) stock?
ChartMill assigns a valuation rating of 9 / 10 to HERBALIFE LTD (HLF). This can be considered as Undervalued.
How profitable is HERBALIFE LTD (HLF) stock?
HERBALIFE LTD (HLF) has a profitability rating of 7 / 10.
How financially healthy is HERBALIFE LTD?
The financial health rating of HERBALIFE LTD (HLF) is 3 / 10.
What is the earnings growth outlook for HERBALIFE LTD?
The Earnings per Share (EPS) of HERBALIFE LTD (HLF) is expected to grow by 7.91% in the next year.