18.3 USD
-0.72 (-3.79%)
18.3062 USD
+0.01 (+0.03%)
We assign a fundamental rating of 3 out of 10 to HELE. HELE was compared to 60 industry peers in the Household Durables industry. There are concerns on the financial health of HELE while its profitability can be described as average. HELE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- HELE had positive earnings in the past year.
- In the past year HELE had a positive cash flow from operations.
- Each year in the past 5 years HELE has been profitable.
- HELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HELE (-33.86%) is worse than 95.00% of its industry peers.
- Looking at the Return On Equity, with a value of -92.99%, HELE is doing worse than 91.67% of the companies in the same industry.
- The Return On Invested Capital of HELE (6.68%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HELE is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -33.86% | ||
| ROE | -92.99% | ||
| ROIC | 6.68% |
ROA(3y)4.94%
ROA(5y)6.79%
ROE(3y)9.09%
ROE(5y)12.93%
ROIC(3y)7.78%
ROIC(5y)9.49%
1.3 Margins
- In the last couple of years the Profit Margin of HELE has declined.
- HELE's Operating Margin of 8.21% is in line compared to the rest of the industry. HELE outperforms 53.33% of its industry peers.
- HELE's Operating Margin has declined in the last couple of years.
- HELE has a Gross Margin of 46.72%. This is amongst the best in the industry. HELE outperforms 86.67% of its industry peers.
- In the last couple of years the Gross Margin of HELE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.21% | ||
| PM (TTM) | N/A | ||
| GM | 46.72% |
OM growth 3Y-3.04%
OM growth 5Y-2.95%
PM growth 3Y-13.62%
PM growth 5Y-6.17%
GM growth 3Y3.79%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HELE is destroying value.
- Compared to 1 year ago, HELE has less shares outstanding
- Compared to 5 years ago, HELE has less shares outstanding
- The debt/assets ratio for HELE is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.67, we must say that HELE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.67, HELE is doing worse than 78.33% of the companies in the same industry.
- HELE has a debt to FCF ratio of 15.97. This is a negative value and a sign of low solvency as HELE would need 15.97 years to pay back of all of its debts.
- The Debt to FCF ratio of HELE (15.97) is worse than 60.00% of its industry peers.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that HELE has dependencies on debt financing.
- HELE has a worse Debt to Equity ratio (1.02) than 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.97 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.76
WACC8.84%
2.3 Liquidity
- HELE has a Current Ratio of 1.81. This is a normal value and indicates that HELE is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.81, HELE is doing worse than 71.67% of the companies in the same industry.
- HELE has a Quick Ratio of 1.81. This is a bad value and indicates that HELE is not financially healthy enough and could expect problems in meeting its short term obligations.
- HELE has a Quick ratio of 0.90. This is comparable to the rest of the industry: HELE outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- HELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.15%.
- Measured over the past years, HELE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.99% on average per year.
- HELE shows a decrease in Revenue. In the last year, the revenue decreased by -5.69%.
- The Revenue has been growing slightly by 2.24% on average over the past years.
EPS 1Y (TTM)-31.15%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-35.96%
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-3.37%
3.2 Future
- Based on estimates for the next years, HELE will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.43% on average per year.
- HELE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.25% yearly.
EPS Next Y-42.84%
EPS Next 2Y-20.82%
EPS Next 3Y-13.43%
EPS Next 5YN/A
Revenue Next Year-7.26%
Revenue Next 2Y-3.38%
Revenue Next 3Y-1.25%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HELE is valuated cheaply with a Price/Earnings ratio of 3.63.
- 98.33% of the companies in the same industry are more expensive than HELE, based on the Price/Earnings ratio.
- HELE is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 4.05, the valuation of HELE can be described as very cheap.
- 96.67% of the companies in the same industry are more expensive than HELE, based on the Price/Forward Earnings ratio.
- HELE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.63 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
- 81.67% of the companies in the same industry are more expensive than HELE, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HELE is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
- A cheap valuation may be justified as HELE's earnings are expected to decrease with -13.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.82%
EPS Next 3Y-13.43%
5. Dividend
5.1 Amount
- No dividends for HELE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HELEN OF TROY LTD / HELE FAQ
What is the ChartMill fundamental rating of HELEN OF TROY LTD (HELE) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HELE.
Can you provide the valuation status for HELEN OF TROY LTD?
ChartMill assigns a valuation rating of 7 / 10 to HELEN OF TROY LTD (HELE). This can be considered as Undervalued.
How profitable is HELEN OF TROY LTD (HELE) stock?
HELEN OF TROY LTD (HELE) has a profitability rating of 4 / 10.
What is the earnings growth outlook for HELEN OF TROY LTD?
The Earnings per Share (EPS) of HELEN OF TROY LTD (HELE) is expected to decline by -42.84% in the next year.