HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
9.28 USD
-0.03 (-0.32%)
9.28 USD
0 (0%)
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 an excellent profitability rating, but there are concerns on its financial health. HLF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year HLF was profitable.
HLF had a positive operating cash flow in the past year.
Each year in the past 5 years HLF has been profitable.
Each year in the past 5 years HLF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HLF (11.88%) is better than 83.33% of its industry peers.
HLF's Return On Invested Capital of 26.65% is amongst the best of the industry. HLF outperforms 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 12.97%.
The last Return On Invested Capital (26.65%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | N/A | ||
| ROIC | 26.65% |
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
HLF has a better Profit Margin (6.59%) than 75.00% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
The Operating Margin of HLF (12.68%) is better than 77.78% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 78.12%, HLF belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
HLF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 6.59% | ||
| GM | 78.12% |
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.
The number of shares outstanding for HLF has been increased compared to 1 year ago.
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
HLF has a better debt/assets ratio than last year.
2.2 Solvency
HLF has an Altman-Z score of 2.37. This is not the best score and indicates that HLF is in the grey zone with still only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score (2.37) which is in line with its industry peers.
HLF has a debt to FCF ratio of 12.49. This is a negative value and a sign of low solvency as HLF would need 12.49 years to pay back of all of its debts.
HLF has a Debt to FCF ratio of 12.49. This is comparable to the rest of the industry: HLF outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Altman-Z | 2.37 |
ROIC/WACC3.8
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.01 indicates that HLF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.01, 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 1.01. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
HLF has a worse Quick ratio (0.54) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.65% over the past year.
Measured over the past years, HLF shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.08% on average per year.
HLF shows a decrease in Revenue. In the last year, the revenue decreased by -2.25%.
Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)7.65%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%9.26%
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-1.72%
3.2 Future
Based on estimates for the next years, HLF will show a very strong growth in Earnings Per Share. The EPS will grow by 21.90% on average per year.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.70% on average per year.
EPS Next Y9.81%
EPS Next 2Y16.97%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue Next Year0.28%
Revenue Next 2Y2.38%
Revenue Next 3Y3.7%
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
The Price/Earnings ratio is 4.40, which indicates a rather cheap valuation of HLF.
Based on the Price/Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
HLF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 3.46 indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.4 | ||
| Fwd PE | 3.46 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 97.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaper than 97.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.58 | ||
| EV/EBITDA | 3.73 |
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.
A more expensive valuation may be justified as HLF's earnings are expected to grow with 21.90% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y16.97%
EPS Next 3Y21.9%
5. Dividend
5.1 Amount
No dividends for HLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.28
-0.03 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners105.01%
Inst Owner Change-2.25%
Ins Owners2.11%
Ins Owner Change0.5%
Market Cap956.86M
Analysts50.91
Price Target9.52 (2.59%)
Short Float %11.15%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)55.95%
Min EPS beat(2)52.72%
Max EPS beat(2)59.17%
EPS beat(4)4
Avg EPS beat(4)58.76%
Min EPS beat(4)52.72%
Max EPS beat(4)62.26%
EPS beat(8)6
Avg EPS beat(8)34.13%
EPS beat(12)9
Avg EPS beat(12)27.43%
EPS beat(16)12
Avg EPS beat(16)24.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.12%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.02%
Revenue beat(16)7
Avg Revenue beat(16)-0.19%
PT rev (1m)3.7%
PT rev (3m)16.67%
EPS NQ rev (1m)-15.66%
EPS NQ rev (3m)-16.99%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.4 | ||
| Fwd PE | 3.46 | ||
| P/S | 0.19 | ||
| P/FCF | 5.58 | ||
| P/OCF | 3.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.73 |
EPS(TTM)2.11
EY22.74%
EPS(NY)2.68
Fwd EY28.9%
FCF(TTM)1.66
FCFY17.91%
OCF(TTM)2.57
OCFY27.73%
SpS47.8
BVpS-6.41
TBVpS-10.45
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | N/A | ||
| ROCE | 38.05% | ||
| ROIC | 26.65% | ||
| ROICexc | 33.13% | ||
| ROICexgc | 48.44% | ||
| OM | 12.68% | ||
| PM (TTM) | 6.59% | ||
| GM | 78.12% | ||
| FCFM | 3.48% |
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%
ROICexcg growth 3Y-11.83%
ROICexcg 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-Score6
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 77.73% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.59% | ||
| Profit Quality | 52.74% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.37 |
F-Score6
WACC7.01%
ROIC/WACC3.8
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)7.65%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%9.26%
EPS Next Y9.81%
EPS Next 2Y16.97%
EPS Next 3Y21.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-1.72%
Revenue Next Year0.28%
Revenue Next 2Y2.38%
Revenue Next 3Y3.7%
Revenue Next 5YN/A
EBIT growth 1Y53.68%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year37.68%
EBIT Next 3Y19.2%
EBIT Next 5YN/A
FCF growth 1Y9.94%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-13.02%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%