HELEN OF TROY LTD (HELE) Stock Fundamental Analysis
NASDAQ:HELE - Nasdaq - BMG4388N1065 - Common Stock
We assign a fundamental rating of 4 out of 10 to HELE. HELE was compared to 67 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 is valued correctly, but it does not seem to be growing.
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.
HELE had positive earnings in each of the past 5 years.
Each year in the past 5 years HELE had a positive operating cash flow.
1.2 Ratios
HELE has a Return On Assets of 3.89%. This is comparable to the rest of the industry: HELE outperforms 44.62% of its industry peers.
HELE has a Return On Equity (7.10%) which is in line with its industry peers.
HELE has a Return On Invested Capital (6.01%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.1% | ||
| ROIC | 6.01% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.05%, HELE is in line with its industry, outperforming 53.85% of the companies in the same industry.
HELE's Profit Margin has declined in the last couple of years.
The Operating Margin of HELE (9.40%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HELE has remained more or less at the same level.
With an excellent Gross Margin value of 48.04%, HELE belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
HELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 6.05% | ||
| GM | 48.04% |
OM growth 3Y-3.97%
OM growth 5Y-1.08%
PM growth 3Y-11.42%
PM growth 5Y-4.83%
GM growth 3Y2.31%
GM growth 5Y2.91%
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.
HELE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HELE has an Altman-Z score of 2.29. This is not the best score and indicates that HELE is in the grey zone with still only limited risk for bankruptcy at the moment.
HELE has a worse Altman-Z score (2.29) than 67.69% of its industry peers.
HELE has a debt to FCF ratio of 5.98. This is a neutral value as HELE would need 5.98 years to pay back of all of its debts.
HELE's Debt to FCF ratio of 5.98 is in line compared to the rest of the industry. HELE outperforms 56.92% of its industry peers.
HELE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
HELE has a worse Debt to Equity ratio (0.45) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.98 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.61
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.92 indicates that HELE should not have too much problems paying its short term obligations.
The Current ratio of HELE (1.92) is worse than 61.54% of its industry peers.
HELE has a Quick Ratio of 1.05. 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 Quick ratio, with a value of 1.05, HELE is in line with its industry, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
HELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.68%.
The Earnings Per Share has been growing slightly by 2.02% on average over the past years.
Looking at the last year, HELE shows a decrease in Revenue. The Revenue has decreased by -4.48% in the last year.
The Revenue has been growing slightly by 5.09% on average over the past years.
EPS 1Y (TTM)-13.68%
EPS 3Y-8.46%
EPS 5Y2.02%
EPS Q2Q%-4.3%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-1.51%
Revenue growth 5Y5.09%
Sales Q2Q%-3.44%
3.2 Future
The Earnings Per Share is expected to grow by 0.71% on average over the next years.
Based on estimates for the next years, HELE will show a small growth in Revenue. The Revenue will grow by 0.99% on average per year.
EPS Next Y-17.78%
EPS Next 2Y-4.8%
EPS Next 3Y0.71%
EPS Next 5YN/A
Revenue Next Year-3.39%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.99%
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
Based on the Price/Earnings ratio of 8.91, the valuation of HELE can be described as reasonable.
HELE's Price/Earnings ratio is a bit cheaper when compared to the industry. HELE is cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of HELE to the average of the S&P500 Index (28.29), we can say HELE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.07, the valuation of HELE can be described as reasonable.
76.92% 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 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HELE indicates a somewhat cheap valuation: HELE is cheaper than 63.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HELE is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.15 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.41
EPS Next 2Y-4.8%
EPS Next 3Y0.71%
5. Dividend
5.1 Amount
No dividends for HELE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HELEN OF TROY LTD
NASDAQ:HELE (1/22/2025, 10:31:59 AM)
65.24
+0.16 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners113.04%
Inst Owner Change0%
Ins Owners1.2%
Ins Owner Change0.33%
Market Cap1.49B
Analysts75
Price Target90.27 (38.37%)
Short Float %9.47%
Short Ratio5.05
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)2
Avg EPS beat(2)7.08%
Min EPS beat(2)0.74%
Max EPS beat(2)13.41%
EPS beat(4)3
Avg EPS beat(4)-5.1%
Min EPS beat(4)-39.07%
Max EPS beat(4)13.41%
EPS beat(8)6
Avg EPS beat(8)0.94%
EPS beat(12)10
Avg EPS beat(12)3.61%
EPS beat(16)13
Avg EPS beat(16)6.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)1.46%
Revenue beat(4)2
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-8.34%
Max Revenue beat(4)1.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)1.23%
Revenue beat(16)10
Avg Revenue beat(16)3.35%
PT rev (1m)0%
PT rev (3m)7.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.07 | ||
| P/S | 0.78 | ||
| P/FCF | 12.15 | ||
| P/OCF | 9.82 | ||
| P/B | 0.92 | ||
| P/tB | 39.92 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)7.32
EY11.22%
EPS(NY)8.08
Fwd EY12.39%
FCF(TTM)5.37
FCFY8.23%
OCF(TTM)6.65
OCFY10.19%
SpS83.63
BVpS71.25
TBVpS1.63
PEG (NY)N/A
PEG (5Y)4.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.1% | ||
| ROCE | 7.32% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 17.92% | ||
| OM | 9.4% | ||
| PM (TTM) | 6.05% | ||
| GM | 48.04% | ||
| FCFM | 6.42% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.97%
OM growth 5Y-1.08%
PM growth 3Y-11.42%
PM growth 5Y-4.83%
GM growth 3Y2.31%
GM growth 5Y2.91%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.98 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 52.64% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.6% | ||
| Profit Quality | 106.19% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.29 |
F-Score7
WACC9.92%
ROIC/WACC0.61
Cap/Depr(3y)226.77%
Cap/Depr(5y)197.94%
Cap/Sales(3y)4.59%
Cap/Sales(5y)3.9%
Profit Quality(3y)70.37%
Profit Quality(5y)92.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.68%
EPS 3Y-8.46%
EPS 5Y2.02%
EPS Q2Q%-4.3%
EPS Next Y-17.78%
EPS Next 2Y-4.8%
EPS Next 3Y0.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-1.51%
Revenue growth 5Y5.09%
Sales Q2Q%-3.44%
Revenue Next Year-3.39%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.99%
Revenue Next 5YN/A
EBIT growth 1Y-36.59%
EBIT growth 3Y-5.42%
EBIT growth 5Y3.96%
EBIT Next Year2.24%
EBIT Next 3Y4.45%
EBIT Next 5YN/A
FCF growth 1Y866.35%
FCF growth 3Y7.74%
FCF growth 5Y9.79%
OCF growth 1Y-22.29%
OCF growth 3Y-0.86%
OCF growth 5Y9.4%