HERBALIFE LTD (HLF) Stock Fundamental Analysis
NYSE:HLF - New York Stock Exchange, Inc. - KYG4412G1010 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HLF. HLF was compared to 37 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. HLF is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HLF was profitable.
HLF had a positive operating cash flow in the past year.
Of the past 5 years HLF 4 years were profitable.
Of the past 5 years HLF 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.26%, HLF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.41%, HLF belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLF is significantly above the industry average of 13.42%.
| 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
HLF's Profit Margin of 1.73% is in line compared to the rest of the industry. HLF outperforms 55.56% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
HLF has a Operating Margin of 8.42%. This is in the better half of the industry: HLF outperforms 61.11% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 77.52%, HLF belongs to the best of the industry, outperforming 94.44% 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 | 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.
There is no outstanding debt for HLF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
HLF has an Altman-Z score of 2.00. 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 (2.00) which is comparable to the rest of the industry.
The Debt to FCF ratio of HLF is 12.54, which is on the high side as it means it would take HLF, 12.54 years of fcf income to pay off all of its debts.
HLF has a Debt to FCF ratio (12.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.54 | ||
| Altman-Z | 2 |
ROIC/WACC3.29
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HLF may have some problems paying its short term obligations.
HLF has a Current ratio of 0.97. This is in the lower half of the industry: HLF underperforms 77.78% of its industry peers.
A Quick Ratio of 0.57 indicates that HLF may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, HLF is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| 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 -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.
EPS 1Y (TTM)-11.31%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%28.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.63%
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 12.64% yearly.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.34% yearly.
EPS Next Y6.36%
EPS Next 2Y12.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.49%
Revenue Next 2Y2.34%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.24, 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.
The average S&P500 Price/Earnings ratio is at 29.63. HLF is valued rather cheaply when compared to this.
HLF is valuated cheaply with a Price/Forward Earnings ratio of 3.99.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.24 | ||
| Fwd PE | 3.99 |
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.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 4.92 |
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 12.64% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y12.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.31
+0.29 (+3.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners110.86%
Inst Owner Change-8.15%
Ins Owners1.83%
Ins Owner Change-0.7%
Market Cap837.56M
Analysts70.91
Price Target8.8 (5.9%)
Short Float %15.8%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)48.3%
Min EPS beat(2)35.7%
Max EPS beat(2)60.9%
EPS beat(4)3
Avg EPS beat(4)27.62%
Min EPS beat(4)-29.77%
Max EPS beat(4)60.9%
EPS beat(8)5
Avg EPS beat(8)17.71%
EPS beat(12)8
Avg EPS beat(12)17.32%
EPS beat(16)11
Avg EPS beat(16)15.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)-1.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)1.25%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)-4.12%
PT rev (3m)-25%
EPS NQ rev (1m)27.33%
EPS NQ rev (3m)69.91%
EPS NY rev (1m)0.68%
EPS NY rev (3m)6.42%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.24 | ||
| Fwd PE | 3.99 | ||
| P/S | 0.17 | ||
| P/FCF | 4.65 | ||
| P/OCF | 2.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.92 |
EPS(TTM)1.96
EY23.59%
EPS(NY)2.08
Fwd EY25.09%
FCF(TTM)1.79
FCFY21.53%
OCF(TTM)3.09
OCFY37.24%
SpS49.62
BVpS-9.47
TBVpS-13.49
PEG (NY)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | N/A | ||
| ROCE | 30.76% | ||
| ROIC | 22.41% | ||
| ROICexc | 31.75% | ||
| ROICexgc | 54.74% | ||
| OM | 8.42% | ||
| PM (TTM) | 1.73% | ||
| GM | 77.52% | ||
| FCFM | 3.61% |
ROA(3y)10.89%
ROA(5y)11.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.9%
ROIC(5y)24.56%
ROICexc(3y)37.6%
ROICexc(5y)42.37%
ROICexgc(3y)60.05%
ROICexgc(5y)72.61%
ROCE(3y)34.18%
ROCE(5y)33.72%
ROICexcg growth 3Y-15.67%
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.14%
ROICexc growth 5Y-73.26%
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%
F-Score7
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.54 | ||
| Debt/EBITDA | 3.65 | ||
| Cap/Depr | 109.12% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.59% | ||
| Profit Quality | 208.2% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 2 |
F-Score7
WACC6.82%
ROIC/WACC3.29
Cap/Depr(3y)131.8%
Cap/Depr(5y)123.13%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.5%
Profit Quality(3y)95.53%
Profit Quality(5y)107.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.31%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%28.57%
EPS Next Y6.36%
EPS Next 2Y12.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.63%
Revenue Next Year1.49%
Revenue Next 2Y2.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.42%
EBIT growth 3Y-12.49%
EBIT growth 5Y-9.03%
EBIT Next Year30.92%
EBIT Next 3Y13.57%
EBIT Next 5YN/A
FCF growth 1Y-19.44%
FCF growth 3Y-24.48%
FCF growth 5Y-16.99%
OCF growth 1Y-18.84%
OCF growth 3Y-17.15%
OCF growth 5Y-11.23%