HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLF - KYG4412G1010 - Common Stock
13.5 USD
+0.93 (+7.4%)
13.43 USD
-0.07 (-0.52%)
Taking everything into account, HLF scores 6 out of 10 in our fundamental rating. HLF was compared to 36 industry peers in the Personal Care Products industry. While HLF has a great profitability rating, there are some minor concerns on its financial health. 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.
HLF had positive earnings in each of the past 5 years.
HLF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLF (11.89%) is better than 86.11% of its industry peers.
HLF's Return On Invested Capital of 25.82% 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 11.83%.
The 3 year average ROIC (21.47%) for HLF is below the current ROIC(25.82%), indicating increased profibility in the last year.
| 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
The Profit Margin of HLF (6.46%) is better than 72.22% of its industry peers.
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.
HLF has a Gross Margin of 77.96%. This is amongst the best in the industry. HLF outperforms 86.11% of its industry peers.
HLF's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HLF 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 2.54 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF's Altman-Z score of 2.54 is in line compared to the rest of the industry. HLF outperforms 55.56% of its industry peers.
HLF has a debt to FCF ratio of 9.30. This is a negative value and a sign of low solvency as HLF would need 9.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.30, HLF is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.54 |
ROIC/WACC3.29
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HLF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.11, HLF is doing worse than 77.78% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that HLF may have some problems paying its short term obligations.
HLF has a Quick ratio of 0.59. This is in the lower half of the industry: HLF underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.51% 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 -0.78%.
The Revenue has been growing slightly by 0.47% on average over the past years.
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 6.62.
Compared to the rest of the industry, the Price/Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. HLF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.13, which 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaply inside the industry as 91.67% 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 97.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.43 | ||
| EV/EBITDA | 4.03 |
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)0.82
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 | N/A |
13.5
+0.93 (+7.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.62%
Inst Owner Change-2.68%
Ins Owners1.97%
Ins Owner Change-0.85%
Market Cap1.39B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts77.5
Price Target9.86 (-26.96%)
Short Float %11.95%
Short Ratio7.21
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)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)3.57%
PT rev (3m)3.57%
EPS NQ rev (1m)-7.08%
EPS NQ rev (3m)-17.5%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.13 | ||
| P/S | 0.28 | ||
| P/FCF | 6.43 | ||
| P/OCF | 4.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.03 |
EPS(TTM)2.04
EY15.11%
EPS(NY)2.63
Fwd EY19.49%
FCF(TTM)2.1
FCFY15.56%
OCF(TTM)2.95
OCFY21.84%
SpS48.03
BVpS-5.92
TBVpS-9.96
PEG (NY)0.82
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 | 2.54 |
F-Score7
WACC7.84%
ROIC/WACC3.29
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 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 4 / 10.
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.