17.64 USD
-0.14 (-0.79%)
17.64 USD
0 (0%)
Overall HELE gets a fundamental rating of 3 out of 10. We evaluated HELE against 60 industry peers in the Household Durables industry. While HELE is still in line with the averages on profitability rating, there are concerns on its financial health. HELE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year HELE was profitable.
- 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
- HELE's Return On Assets of -33.86% is on the low side compared to the rest of the industry. HELE is outperformed by 95.00% of its industry peers.
- HELE has a Return On Equity of -92.99%. This is amonst the worse of the industry: HELE underperforms 91.67% of its industry peers.
- HELE has a Return On Invested Capital of 6.68%. This is comparable to the rest of the industry: HELE outperforms 48.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HELE is in line with the industry average of 9.70%.
| 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.
- Looking at the Operating Margin, with a value of 8.21%, HELE is in line with its industry, outperforming 53.33% of the companies in the same industry.
- HELE's Operating Margin has declined in the last couple of years.
- HELE has a better Gross Margin (46.72%) than 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
- HELE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HELE has been reduced compared to 1 year ago.
- HELE has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HELE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.65, we must say that HELE is in the distress zone and has some risk of bankruptcy.
- HELE has a worse Altman-Z score (1.65) than 78.33% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 15.97, HELE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that HELE has dependencies on debt financing.
- HELE's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. HELE is outperformed by 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.97 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.76
WACC8.74%
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.
- A Quick Ratio of 0.90 indicates that HELE may have some problems paying its short term obligations.
- HELE's Quick ratio of 0.90 is in line compared 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
- The earnings per share for HELE have decreased strongly by -31.15% in the last year.
- The Earnings Per Share has been decreasing by -4.99% on average over the past years.
- The Revenue has decreased by -5.69% in the past year.
- Measured over the past years, HELE shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
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
- The Earnings Per Share is expected to decrease by -17.15% on average over the next years. This is quite bad
- HELE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.25% yearly.
EPS Next Y-48.72%
EPS Next 2Y-27.93%
EPS Next 3Y-17.15%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- The Price/Earnings ratio is 3.50, which indicates a rather cheap valuation of HELE.
- Based on the Price/Earnings ratio, HELE is valued cheaply inside the industry as 98.33% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, HELE is valued rather cheaply.
- The Price/Forward Earnings ratio is 4.72, which indicates a rather cheap valuation of HELE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HELE indicates a rather cheap valuation: HELE is cheaper than 96.67% of the companies listed in the same industry.
- HELE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.5 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HELE is valued cheaper than 83.33% of the companies in the same industry.
- HELE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HELE is cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
- A cheap valuation may be justified as HELE's earnings are expected to decrease with -17.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.93%
EPS Next 3Y-17.15%
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 -48.72% in the next year.