HERBALIFE LTD (HLF) Stock Fundamental Analysis
NYSE:HLF - New York Stock Exchange, Inc. - KYG4412G1010 - Common Stock - Currency: USD
HLF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years HLF has 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 9.32% is fine compared to the rest of the industry. HLF outperforms 77.14% of its industry peers.
HLF has a better Return On Invested Capital (21.72%) than 88.57% 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 16.08%.
The last Return On Invested Capital (21.72%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | N/A | ||
| ROIC | 21.72% |
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 Profit Margin of 5.09%. This is in the better half of the industry: HLF outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of HLF has declined.
With a decent Operating Margin value of 9.30%, HLF is doing good in the industry, outperforming 62.86% of the companies in the same industry.
HLF's Operating Margin has declined in the last couple of years.
The Gross Margin of HLF (77.88%) is better than 94.29% 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 | 9.3% | ||
| PM (TTM) | 5.09% | ||
| GM | 77.88% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
HLF has a better debt/assets ratio than last year.
2.2 Solvency
HLF has an Altman-Z score of 2.07. 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 (2.07) which is in line with its industry peers.
HLF has a debt to FCF ratio of 13.83. This is a negative value and a sign of low solvency as HLF would need 13.83 years to pay back of all of its debts.
HLF's Debt to FCF ratio of 13.83 is in line compared to the rest of the industry. HLF outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.83 | ||
| Altman-Z | 2.07 |
ROIC/WACC3.09
WACC7.02%
2.3 Liquidity
A Current Ratio of 0.93 indicates that HLF may have some problems paying its short term obligations.
The Current ratio of HLF (0.93) is worse than 77.14% 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 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for HLF have decreased by -4.63% in the last 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 -1.37% in the past year.
The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-4.63%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%20.41%
Revenue 1Y (TTM)-1.37%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-3.37%
3.2 Future
HLF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.61% yearly.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y6.8%
EPS Next 2Y15.92%
EPS Next 3Y20.61%
EPS Next 5YN/A
Revenue Next Year-0.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.18%
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.
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 3.51, 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.
HLF is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 2.75 indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. HLF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.51 | ||
| Fwd PE | 2.75 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 88.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.49 | ||
| EV/EBITDA | 4.42 |
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 20.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y15.92%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:HLF (5/5/2025, 11:08:51 AM)
7.24
-0.08 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change0.27%
Ins Owners1.62%
Ins Owner Change-1.78%
Market Cap733.70M
Analysts50.91
Price Target9.52 (31.49%)
Short Float %14.77%
Short Ratio5.35
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)61.58%
Min EPS beat(2)60.9%
Max EPS beat(2)62.26%
EPS beat(4)4
Avg EPS beat(4)50.62%
Min EPS beat(4)35.7%
Max EPS beat(4)62.26%
EPS beat(8)5
Avg EPS beat(8)18.57%
EPS beat(12)9
Avg EPS beat(12)23.5%
EPS beat(16)12
Avg EPS beat(16)20.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)0.12%
Revenue beat(8)5
Avg Revenue beat(8)0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)5.16%
PT rev (3m)0.36%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-17%
EPS NY rev (1m)3.02%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.51 | ||
| Fwd PE | 2.75 | ||
| P/S | 0.15 | ||
| P/FCF | 4.49 | ||
| P/OCF | 2.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.42 |
EPS(TTM)2.06
EY28.45%
EPS(NY)2.63
Fwd EY36.38%
FCF(TTM)1.61
FCFY22.27%
OCF(TTM)2.82
OCFY38.9%
SpS49.27
BVpS-7.91
TBVpS-11.85
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | N/A | ||
| ROCE | 31% | ||
| ROIC | 21.72% | ||
| ROICexc | 30.05% | ||
| ROICexgc | 47.66% | ||
| OM | 9.3% | ||
| PM (TTM) | 5.09% | ||
| GM | 77.88% | ||
| FCFM | 3.27% |
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-Score8
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.83 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 48.73% | ||
| Profit Quality | 64.25% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.07 |
F-Score8
WACC7.02%
ROIC/WACC3.09
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)-4.63%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%20.41%
EPS Next Y6.8%
EPS Next 2Y15.92%
EPS Next 3Y20.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.37%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-3.37%
Revenue Next Year-0.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y13.08%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year34.09%
EBIT Next 3Y17.6%
EBIT Next 5YN/A
FCF growth 1Y-26.56%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-20.17%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%