HERBALIFE LTD (HLF)
KYG4412G1010 - Common Stock
We assign a fundamental rating of 5 out of 10 to HLF. HLF was compared to 36 industry peers in the Personal Care Products industry. HLF has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF.
1. Profitability
1.1 Basic Checks
HLF had positive earnings in the past year.
HLF had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.26%, HLF is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
The Return On Invested Capital of HLF (22.41%) is better than 94.29% of its industry peers.
HLF had an Average Return On Invested Capital over the past 3 years of 24.90%. This is significantly above the industry average of 13.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | N/A | ||
| ROIC | 22.41% |
ROA(3y)10.89%
ROA(5y)11.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)24.56%
1.3 Margins
With a Profit Margin value of 1.73%, HLF perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
In the last couple of years the Profit Margin of HLF has declined.
With a Operating Margin value of 8.42%, HLF perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of HLF has declined.
With an excellent Gross Margin value of 77.52%, HLF belongs to the best of the industry, outperforming 91.43% 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 | 8.42% | ||
| PM (TTM) | 1.73% | ||
| GM | 77.52% |
OM growth 3Y-9.81%
OM growth 5Y-9.65%
PM growth 3Y-25.24%
PM growth 5Y-14.26%
GM growth 3Y-1.18%
GM growth 5Y-1.19%
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.
Compared to 1 year ago, HLF has more shares outstanding
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.02 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a worse Altman-Z score (2.02) than 62.86% of its industry peers.
HLF has a debt to FCF ratio of 12.54. This is a negative value and a sign of low solvency as HLF would need 12.54 years to pay back of all of its debts.
HLF has a Debt to FCF ratio of 12.54. This is comparable to the rest of the industry: HLF outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.54 | ||
| Altman-Z | 2.02 |
ROIC/WACC3.08
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HLF may have some problems paying its short term obligations.
HLF has a worse Current ratio (0.97) than 80.00% of its industry peers.
HLF has a Quick Ratio of 0.97. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.57, HLF is doing worse than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
HLF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.58%.
Measured over the past years, HLF shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.09% on average per year.
Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -0.55% in the last year.
Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.69% on average per year.
EPS 1Y (TTM)-23.58%
EPS 3Y-15.32%
EPS 5Y-5.09%
EPS Q2Q%-12.31%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-2.97%
Revenue growth 5Y0.69%
Sales Q2Q%-3.2%
3.2 Future
HLF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.13% yearly.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 1.10% on average per year.
EPS Next Y-25.57%
EPS Next 2Y-5.38%
EPS Next 3Y9.13%
EPS Next 5YN/A
Revenue Next Year-1.08%
Revenue Next 2Y0.44%
Revenue Next 3Y1.1%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.61, which indicates a rather cheap valuation of HLF.
Based on the Price/Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.38, HLF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.38, 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 97.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.61 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 97.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
The decent profitability rating of HLF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.38%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
No dividends for HLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HERBALIFE LTD
NYSE:HLF (11/11/2024, 8:04:00 PM)
After market: 8.67 0 (0%)8.67
+0.16 (+1.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap873.85M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.61 | ||
| Fwd PE | 4.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.42% | ||
| PM (TTM) | 1.73% | ||
| GM | 77.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-23.58%
EPS 3Y-15.32%
EPS 5Y
EPS Q2Q%
EPS Next Y-25.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-2.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y