HERBALIFE LTD (HLF) Stock Fundamental Analysis
NYSE:HLF - New York Stock Exchange, Inc. - KYG4412G1010 - Common Stock - Currency: USD
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 35 industry peers in the Personal Care Products industry. HLF scores excellent on profitability, but there are 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
In the past year HLF was profitable.
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 Return On Assets of 9.32%. This is in the better half of the industry: HLF outperforms 77.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.72%, HLF belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
HLF had an Average Return On Invested Capital over the past 3 years of 21.47%. This is significantly above the industry average of 15.96%.
The last Return On Invested Capital (21.72%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | N/A | ||
| ROIC | 21.72% |
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's Profit Margin of 5.09% is fine compared to the rest of the industry. HLF outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of HLF has declined.
HLF's Operating Margin of 9.30% is fine compared to the rest of the industry. HLF outperforms 62.86% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
HLF's Gross Margin of 77.88% is amongst the best of the industry. HLF outperforms 94.29% of its industry peers.
HLF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 5.09% | ||
| GM | 77.88% |
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.
The number of shares outstanding for HLF has been increased compared to 1 year ago.
HLF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.05, HLF perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
The Debt to FCF ratio of HLF is 13.83, which is on the high side as it means it would take HLF, 13.83 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.83, HLF perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.83 | ||
| Altman-Z | 2.05 |
ROIC/WACC3.03
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.93 indicates that HLF may have some problems paying its short term obligations.
HLF has a worse Current ratio (0.93) than 77.14% of its industry peers.
HLF has a Quick Ratio of 0.93. 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 Quick ratio of 0.54. This is amonst the worse of the industry: HLF underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
HLF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.31%.
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.
The Revenue has decreased by -1.37% in the past year.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
EPS 1Y (TTM)-11.31%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%28.57%
Revenue 1Y (TTM)-1.37%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-0.63%
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 20.61% on average per year.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y3.66%
EPS Next 2Y12.55%
EPS Next 3Y20.61%
EPS Next 5YN/A
Revenue Next Year-0.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.18%
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
With a Price/Earnings ratio of 3.29, the valuation of HLF can be described as very cheap.
HLF's Price/Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
HLF is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.17, which indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.29 | ||
| Fwd PE | 3.17 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 85.71% of the companies in the same industry.
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 | 3.99 | ||
| EV/EBITDA | 4.26 |
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.
A more expensive valuation may be justified as HLF's earnings are expected to grow with 20.61% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y12.55%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.44
+0.2 (+3.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change0%
Ins Owners1.62%
Ins Owner Change-1.78%
Market Cap652.63M
Analysts73.33
Price Target10.71 (66.3%)
Short Float %15.75%
Short Ratio5.73
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)61.58%
Min EPS beat(2)60.9%
Max EPS beat(2)62.26%
EPS beat(4)4
Avg EPS beat(4)50.62%
Min EPS beat(4)35.7%
Max EPS beat(4)62.26%
EPS beat(8)5
Avg EPS beat(8)18.57%
EPS beat(12)9
Avg EPS beat(12)23.5%
EPS beat(16)12
Avg EPS beat(16)20.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)0.12%
Revenue beat(8)5
Avg Revenue beat(8)0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)21.74%
PT rev (3m)8.25%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-15.05%
EPS NY rev (1m)-2.54%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.29 | ||
| Fwd PE | 3.17 | ||
| P/S | 0.13 | ||
| P/FCF | 3.99 | ||
| P/OCF | 2.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.26 |
EPS(TTM)1.96
EY30.43%
EPS(NY)2.03
Fwd EY31.55%
FCF(TTM)1.61
FCFY25.04%
OCF(TTM)2.82
OCFY43.73%
SpS49.27
BVpS-7.91
TBVpS-11.85
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | N/A | ||
| ROCE | 31% | ||
| ROIC | 21.72% | ||
| ROICexc | 30.05% | ||
| ROICexgc | 47.66% | ||
| OM | 9.3% | ||
| PM (TTM) | 5.09% | ||
| GM | 77.88% | ||
| FCFM | 3.27% |
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-Score8
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.83 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 48.73% | ||
| Profit Quality | 64.25% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.05 |
F-Score8
WACC7.16%
ROIC/WACC3.03
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)-11.31%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%28.57%
EPS Next Y3.66%
EPS Next 2Y12.55%
EPS Next 3Y20.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.37%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-0.63%
Revenue Next Year-0.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y13.08%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year34.09%
EBIT Next 3Y17.6%
EBIT Next 5YN/A
FCF growth 1Y-26.56%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y-20.17%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%