HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLF - KYG4412G1010 - Common Stock
16.97 USD
+0.29 (+1.74%)
16.7559 USD
-0.21 (-1.26%)
We assign a fundamental rating of 6 out of 10 to HLF. 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. HLF is valued quite cheap, while showing a decent growth score. This is a good 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.
- HLF had positive earnings in each of the past 5 years.
- In the past 5 years HLF always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.89%, HLF belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
- HLF's Return On Invested Capital of 25.82% is amongst the best of the industry. HLF outperforms 94.44% 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 11.85%.
- 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
- HLF has a better Profit Margin (6.46%) than 72.22% of its industry peers.
- HLF's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 12.61%, HLF is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- HLF's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 77.96%, HLF belongs to the best of the industry, outperforming 88.89% 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 | 12.61% | ||
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HLF is creating value.
- The number of shares outstanding for HLF has been increased compared to 1 year ago.
- Compared to 5 years ago, HLF has less shares outstanding
- The debt/assets ratio for HLF has been reduced compared to a year ago.
2.2 Solvency
- HLF has an Altman-Z score of 2.62. 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 (2.62) which is in line with its industry peers.
- The Debt to FCF ratio of HLF is 9.30, which is on the high side as it means it would take HLF, 9.30 years of fcf income to pay off all of its debts.
- HLF has a better Debt to FCF ratio (9.30) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.62 |
ROIC/WACC3.23
WACC8%
2.3 Liquidity
- HLF has a Current Ratio of 1.11. This is a normal value and indicates that HLF is financially healthy and should not expect problems in meeting its short term obligations.
- HLF's Current ratio of 1.11 is on the low side compared to the rest of the industry. HLF is outperformed by 75.00% of its industry peers.
- HLF has a Quick Ratio of 1.11. 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 (0.59) than 72.22% 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.
- The Earnings Per Share has been decreasing by -7.08% on average over the past years.
- Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -0.78% in the last year.
- 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
- Based on estimates for the next years, HLF will show a very strong growth in Earnings Per Share. The EPS will grow by 21.64% on average per year.
- HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y8.03%
EPS Next 2Y15.87%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue Next Year0.38%
Revenue Next 2Y1.67%
Revenue Next 3Y2.48%
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.
- 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 8.32, the valuation of HLF can be described as very reasonable.
- HLF's Price/Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (27.38), we can say HLF is valued rather cheaply.
- HLF is valuated cheaply with a Price/Forward Earnings ratio of 6.45.
- Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 91.67% of the companies in the same industry.
- HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 88.89% of the companies listed in the same industry.
- 97.22% of the companies in the same industry are more expensive than HLF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 21.64% in the coming years.
PEG (NY)1.04
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 | 0% |
16.97
+0.29 (+1.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners101.76%
Inst Owner Change-0.08%
Ins Owners1.97%
Ins Owner Change-0.85%
Market Cap1.75B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts77.5
Price Target14.79 (-12.85%)
Short Float %10.41%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)50%
PT rev (3m)55.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 6.45 | ||
| P/S | 0.35 | ||
| P/FCF | 8.08 | ||
| P/OCF | 5.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.64 |
EPS(TTM)2.04
EY12.02%
EPS(NY)2.63
Fwd EY15.51%
FCF(TTM)2.1
FCFY12.38%
OCF(TTM)2.95
OCFY17.37%
SpS48.03
BVpS-5.92
TBVpS-9.96
PEG (NY)1.04
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 | 2.62 |
F-Score7
WACC8%
ROIC/WACC3.23
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 Year0.38%
Revenue Next 2Y1.67%
Revenue Next 3Y2.48%
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 for HLF stock?
ChartMill assigns a valuation rating of 9 / 10 to HERBALIFE LTD (HLF). This can be considered as Undervalued.
What is the profitability of HLF stock?
HERBALIFE LTD (HLF) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HERBALIFE LTD (HLF) stock?
The Price/Earnings (PE) ratio for HERBALIFE LTD (HLF) is 8.32 and the Price/Book (PB) ratio is -2.86.
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.