HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - NYSE:HLF - KYG4412G1010 - Common Stock
8.24 USD
+0.26 (+3.26%)
8.4999 USD
+0.26 (+3.15%)
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 34 industry peers in the Personal Care Products industry. HLF scores excellent on profitability, 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
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.
Each year in the past 5 years HLF had a positive operating cash flow.
1.2 Ratios
HLF has a better Return On Assets (11.88%) than 85.29% of its industry peers.
HLF has a better Return On Invested Capital (26.65%) than 94.12% of its industry peers.
HLF had an Average Return On Invested Capital over the past 3 years of 21.47%. This is significantly above the industry average of 12.80%.
The 3 year average ROIC (21.47%) for HLF is below the current ROIC(26.65%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 6.59%, HLF is doing good in the industry, outperforming 73.53% of the companies in the same industry.
HLF's Profit Margin has declined in the last couple of years.
HLF's Operating Margin of 12.68% is fine compared to the rest of the industry. HLF outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of HLF has declined.
With an excellent Gross Margin value of 78.12%, HLF belongs to the best of the industry, outperforming 91.18% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HLF 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
HLF has an Altman-Z score of 2.34. 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.
Looking at the Altman-Z score, with a value of 2.34, HLF is in line with its industry, outperforming 47.06% of the companies in the same industry.
The Debt to FCF ratio of HLF is 12.49, which is on the high side as it means it would take HLF, 12.49 years of fcf income to pay off 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 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.49 | ||
| Altman-Z | 2.34 |
ROIC/WACC3.93
WACC6.78%
2.3 Liquidity
HLF has a Current Ratio of 1.01. This is a normal value and indicates that HLF is financially healthy and should not expect problems in meeting its short term obligations.
HLF has a Current ratio of 1.01. This is in the lower half of the industry: HLF underperforms 79.41% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.54, HLF is doing worse than 85.29% of the companies in the same industry.
| 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.
HLF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.08% yearly.
Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -2.25% in the last year.
The Revenue has been growing slightly by 0.47% on average over the past years.
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
HLF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.90% yearly.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 3.71% 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 3Y3.71%
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.
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
A Price/Earnings ratio of 3.91 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.
When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (26.13), we can say HLF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.07, the valuation of HLF can be described as very cheap.
HLF's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLF to the average of the S&P500 Index (22.35), we can say HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.07 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 94.12% of the companies in the same industry.
HLF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLF is cheaper than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLF has a very decent profitability rating, which may justify a higher PE ratio.
HLF's earnings are expected to grow with 21.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
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 |
8.24
+0.26 (+3.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change-0.22%
Ins Owners1.96%
Ins Owner Change-1%
Market Cap849.63M
Revenue(TTM)4.93B
Net Income(TTM)325.00M
Analysts50.91
Price Target9.52 (15.53%)
Short Float %12.08%
Short Ratio8.77
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)0%
PT rev (3m)16.67%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.07 | ||
| P/S | 0.17 | ||
| P/FCF | 4.96 | ||
| P/OCF | 3.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.55 |
EPS(TTM)2.11
EY25.61%
EPS(NY)2.68
Fwd EY32.54%
FCF(TTM)1.66
FCFY20.17%
OCF(TTM)2.57
OCFY31.23%
SpS47.8
BVpS-6.41
TBVpS-10.45
PEG (NY)0.4
PEG (5Y)N/A
Graham NumberN/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%
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-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 | 2.34 |
F-Score6
WACC6.78%
ROIC/WACC3.93
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 3Y3.71%
Revenue Next 5YN/A
EBIT growth 1Y53.68%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year38.39%
EBIT Next 3Y16.92%
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%
HERBALIFE LTD / HLF FAQ
Can you provide the ChartMill fundamental rating for HERBALIFE LTD?
ChartMill assigns a fundamental rating of 5 / 10 to HLF.
What is the valuation status of HERBALIFE LTD (HLF) stock?
ChartMill assigns a valuation rating of 9 / 10 to HERBALIFE LTD (HLF). This can be considered as Undervalued.
How profitable is HERBALIFE LTD (HLF) stock?
HERBALIFE LTD (HLF) has a profitability rating of 7 / 10.
How financially healthy is HERBALIFE LTD?
The financial health rating of HERBALIFE LTD (HLF) is 3 / 10.
What is the earnings growth outlook for HERBALIFE LTD?
The Earnings per Share (EPS) of HERBALIFE LTD (HLF) is expected to grow by 9.81% in the next year.