HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLF - KYG4412G1010 - Common Stock
14.98 USD
+0.31 (+2.11%)
14.98 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HLF. HLF was compared to 36 industry peers in the Personal Care Products industry. HLF has an excellent profitability rating, but there are some minor concerns on its financial health. HLF is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years HLF has always been profitable.
HLF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLF has a better Return On Assets (11.89%) than 86.11% of its industry peers.
The Return On Invested Capital of HLF (25.82%) is better than 94.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLF is significantly above the industry average of 11.83%.
The last Return On Invested Capital (25.82%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.89% | ||
| ROE | N/A | ||
| ROIC | 25.82% |
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
With a decent Profit Margin value of 6.46%, HLF is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Profit Margin of HLF has declined.
HLF has a Operating Margin of 12.61%. This is in the better half of the industry: HLF outperforms 77.78% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 77.96%, HLF belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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 | 12.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 77.96% |
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
HLF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HLF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
The debt/assets ratio for HLF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.59 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score (2.59) which is comparable to the rest of the industry.
The Debt to FCF ratio of HLF is 9.30, which is on the high side as it means it would take HLF, 9.30 years of fcf income to pay off all of its debts.
HLF has a Debt to FCF ratio of 9.30. This is in the better half of the industry: HLF outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.59 |
ROIC/WACC3.17
WACC8.14%
2.3 Liquidity
HLF has a Current Ratio of 1.11. This is a normal value and indicates that HLF is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, HLF is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
HLF has a Quick Ratio of 1.11. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.59, HLF is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
HLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.51%, which is quite good.
The Earnings Per Share has been decreasing by -7.08% on average over the past years.
HLF shows a decrease in Revenue. In the last year, the revenue decreased by -0.78%.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
EPS 1Y (TTM)8.51%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%-12.28%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%2.69%
3.2 Future
HLF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.64% yearly.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.21% yearly.
EPS Next Y8.03%
EPS Next 2Y15.87%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue Next Year0.46%
Revenue Next 2Y1.98%
Revenue Next 3Y3.21%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLF is valuated cheaply with a Price/Earnings ratio of 7.34.
Compared to the rest of the industry, the Price/Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 94.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (27.19), we can say HLF is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.69, the valuation of HLF can be described as very cheap.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 5.69 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than HLF, based on the Enterprise Value to EBITDA ratio.
97.22% of the companies in the same industry are more expensive than HLF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.13 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
HLF's 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 21.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y15.87%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
14.98
+0.31 (+2.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.76%
Inst Owner Change0%
Ins Owners1.97%
Ins Owner Change-0.85%
Market Cap1.55B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts77.5
Price Target12.24 (-18.29%)
Short Float %10.41%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)30.05%
Min EPS beat(2)7.39%
Max EPS beat(2)52.72%
EPS beat(4)4
Avg EPS beat(4)45.38%
Min EPS beat(4)7.39%
Max EPS beat(4)62.26%
EPS beat(8)7
Avg EPS beat(8)36.5%
EPS beat(12)9
Avg EPS beat(12)26.94%
EPS beat(16)12
Avg EPS beat(16)24.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)24.14%
PT rev (3m)28.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 5.69 | ||
| P/S | 0.31 | ||
| P/FCF | 7.13 | ||
| P/OCF | 5.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.37 |
EPS(TTM)2.04
EY13.62%
EPS(NY)2.63
Fwd EY17.57%
FCF(TTM)2.1
FCFY14.02%
OCF(TTM)2.95
OCFY19.68%
SpS48.03
BVpS-5.92
TBVpS-9.96
PEG (NY)0.92
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.89% | ||
| ROE | N/A | ||
| ROCE | 36.85% | ||
| ROIC | 25.82% | ||
| ROICexc | 31.48% | ||
| ROICexgc | 44.93% | ||
| OM | 12.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 77.96% | ||
| FCFM | 4.37% |
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%
ROICexgc growth 3Y-11.83%
ROICexgc 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-Score7
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 72.46% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.81% | ||
| Profit Quality | 67.66% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.59 |
F-Score7
WACC8.14%
ROIC/WACC3.17
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)8.51%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%-12.28%
EPS Next Y8.03%
EPS Next 2Y15.87%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%2.69%
Revenue Next Year0.46%
Revenue Next 2Y1.98%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
EBIT growth 1Y48.57%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year37.99%
EBIT Next 3Y16.92%
EBIT Next 5YN/A
FCF growth 1Y25.8%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-3.3%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%
HERBALIFE LTD / HLF FAQ
Can you provide the ChartMill fundamental rating for HERBALIFE LTD?
ChartMill assigns a fundamental rating of 6 / 10 to HLF.
What is the valuation status for HLF stock?
ChartMill assigns a valuation rating of 9 / 10 to HERBALIFE LTD (HLF). This can be considered as Undervalued.
What is the profitability of HLF stock?
HERBALIFE LTD (HLF) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HERBALIFE LTD (HLF) stock?
The Price/Earnings (PE) ratio for HERBALIFE LTD (HLF) is 7.34 and the Price/Book (PB) ratio is -2.53.
What is the earnings growth outlook for HERBALIFE LTD?
The Earnings per Share (EPS) of HERBALIFE LTD (HLF) is expected to grow by 8.03% in the next year.