HELEN OF TROY LTD (HELE) Stock Fundamental Analysis
NASDAQ:HELE - Nasdaq - BMG4388N1065 - Common Stock - Currency: USD
Taking everything into account, HELE scores 4 out of 10 in our fundamental rating. HELE was compared to 63 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year HELE was profitable.
HELE had a positive operating cash flow in the past year.
In the past 5 years HELE has always been profitable.
Each year in the past 5 years HELE had a positive operating cash flow.
1.2 Ratios
HELE has a Return On Assets of 3.95%. This is comparable to the rest of the industry: HELE outperforms 50.79% of its industry peers.
With a Return On Equity value of 7.35%, HELE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
HELE has a Return On Invested Capital of 6.46%. This is comparable to the rest of the industry: HELE outperforms 49.21% of its industry peers.
HELE had an Average Return On Invested Capital over the past 3 years of 7.78%. This is below the industry average of 10.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.35% | ||
| ROIC | 6.46% |
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
HELE has a Profit Margin (6.49%) which is comparable to the rest of the industry.
HELE's Profit Margin has declined in the last couple of years.
The Operating Margin of HELE (11.19%) is better than 69.84% of its industry peers.
HELE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.93%, HELE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
HELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 6.49% | ||
| GM | 47.93% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HELE is destroying value.
HELE has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 1.83 indicates that HELE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HELE (1.83) is worse than 68.25% of its industry peers.
The Debt to FCF ratio of HELE is 11.03, which is on the high side as it means it would take HELE, 11.03 years of fcf income to pay off all of its debts.
HELE's Debt to FCF ratio of 11.03 is in line compared to the rest of the industry. HELE outperforms 47.62% of its industry peers.
HELE has a Debt/Equity ratio of 0.54. This is a neutral value indicating HELE is somewhat dependend on debt financing.
HELE has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: HELE underperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 11.03 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.75
WACC8.64%
2.3 Liquidity
HELE has a Current Ratio of 2.00. This is a normal value and indicates that HELE is financially healthy and should not expect problems in meeting its short term obligations.
HELE has a worse Current ratio (2.00) than 61.90% of its industry peers.
A Quick Ratio of 1.03 indicates that HELE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, HELE is in line with its industry, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.94%.
HELE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.99% yearly.
The Revenue has decreased by -4.86% in the past year.
The Revenue has been growing slightly by 2.24% on average over the past years.
EPS 1Y (TTM)-16.94%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-58.59%
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-10.84%
3.2 Future
HELE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.49% yearly.
The Revenue is expected to grow by 2.15% on average over the next years.
EPS Next Y-26.53%
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.41, the valuation of HELE can be described as very cheap.
Based on the Price/Earnings ratio, HELE is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
HELE is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.04, 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 96.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HELE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.41 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
HELE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HELE is cheaper than 93.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HELE is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
HELE's earnings are expected to decrease with -12.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
5. Dividend
5.1 Amount
HELE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.55
-1.41 (-5.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change-0.04%
Ins Owners1.84%
Ins Owner Change6.18%
Market Cap517.75M
Analysts76.36
Price Target65.28 (189.49%)
Short Float %12.55%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.75%
Min EPS beat(2)-4.82%
Max EPS beat(2)1.33%
EPS beat(4)2
Avg EPS beat(4)-7.29%
Min EPS beat(4)-39.07%
Max EPS beat(4)13.41%
EPS beat(8)5
Avg EPS beat(8)-0.2%
EPS beat(12)9
Avg EPS beat(12)1.39%
EPS beat(16)13
Avg EPS beat(16)6.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-8.34%
Max Revenue beat(4)1.46%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)9
Avg Revenue beat(16)3.23%
PT rev (1m)0%
PT rev (3m)-25.36%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-25.94%
EPS NY rev (1m)-10.12%
EPS NY rev (3m)-33.01%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-12.15%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-7.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.41 | ||
| Fwd PE | 4.04 | ||
| P/S | 0.27 | ||
| P/FCF | 6.23 | ||
| P/OCF | 4.57 | ||
| P/B | 0.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.39 |
EPS(TTM)6.62
EY29.36%
EPS(NY)5.59
Fwd EY24.77%
FCF(TTM)3.62
FCFY16.06%
OCF(TTM)4.93
OCFY21.87%
SpS83.09
BVpS73.32
TBVpS-2.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.35% | ||
| ROCE | 8.01% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 19.19% | ||
| OM | 11.19% | ||
| PM (TTM) | 6.49% | ||
| GM | 47.93% | ||
| FCFM | 4.36% |
ROA(3y)4.94%
ROA(5y)6.79%
ROE(3y)9.09%
ROE(5y)12.93%
ROIC(3y)7.78%
ROIC(5y)9.49%
ROICexc(3y)7.81%
ROICexc(5y)9.62%
ROICexgc(3y)23.08%
ROICexgc(5y)29.38%
ROCE(3y)9.64%
ROCE(5y)11.77%
ROICexcg growth 3Y-15.74%
ROICexcg growth 5Y-12.1%
ROICexc growth 3Y-13.74%
ROICexc growth 5Y-11.08%
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%
F-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 11.03 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 54.63% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 42.15% | ||
| Profit Quality | 67.18% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.83 |
F-Score5
WACC8.64%
ROIC/WACC0.75
Cap/Depr(3y)172.35%
Cap/Depr(5y)199.35%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.01%
Profit Quality(3y)83.41%
Profit Quality(5y)72.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.94%
EPS 3Y-16.48%
EPS 5Y-4.99%
EPS Q2Q%-58.59%
EPS Next Y-26.53%
EPS Next 2Y-11.92%
EPS Next 3Y-12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y-4.98%
Revenue growth 5Y2.24%
Sales Q2Q%-10.84%
Revenue Next Year-1.13%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.15%
Revenue Next 5YN/A
EBIT growth 1Y-13.98%
EBIT growth 3Y-7.86%
EBIT growth 5Y-0.78%
EBIT Next Year-1.35%
EBIT Next 3Y-2.33%
EBIT Next 5YN/A
FCF growth 1Y-69.14%
FCF growth 3Y9.8%
FCF growth 5Y-19.99%
OCF growth 1Y-63.01%
OCF growth 3Y-7.01%
OCF growth 5Y-16.04%