HERBALIFE LTD (HLF)
KYG4412G1010 - Common Stock
HLF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. There are concerns on the financial health of HLF while its profitability can be described as average. 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.
Each year in the past 5 years HLF has been profitable.
Each year in the past 5 years HLF 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.
Looking at the Return On Invested Capital, with a value of 22.41%, HLF belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
HLF had an Average Return On Invested Capital over the past 3 years of 24.90%. This is significantly above the industry average of 13.52%.
| 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 has a Profit Margin of 1.73%. This is comparable to the rest of the industry: HLF outperforms 52.78% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.42%, HLF is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
HLF's Operating Margin has declined in the last couple of years.
HLF has a Gross Margin of 77.52%. This is amongst the best in the industry. HLF outperforms 94.44% of its industry peers.
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
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.
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 1.97. 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's Altman-Z score of 1.97 is in line compared to the rest of the industry. HLF outperforms 41.67% of its industry peers.
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 of 12.54. This is comparable to the rest of the industry: HLF outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.54 | ||
| Altman-Z | 1.97 |
ROIC/WACC3.55
WACC6.31%
2.3 Liquidity
HLF has a Current Ratio of 0.97. 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 Current ratio, with a value of 0.97, HLF is doing worse than 77.78% of the companies in the same industry.
HLF has a Quick Ratio of 0.97. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HLF (0.57) is worse than 83.33% of its industry peers.
| 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 -23.58%.
The Earnings Per Share has been decreasing by -5.09% on average over the past years.
HLF shows a decrease in Revenue. In the last year, the revenue decreased by -0.55%.
The Revenue has been growing slightly by 0.69% on average over the past years.
EPS 1Y (TTM)-23.58%
EPS 3Y-15.32%
EPS 5Y-5.09%
EPS Q2Q%-12.31%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-2.97%
Revenue growth 5Y0.69%
Sales Q2Q%-3.2%
3.2 Future
Based on estimates for the next years, HLF will show a small growth in Earnings Per Share. The EPS will grow by 4.01% on average per year.
The Revenue is expected to grow by 1.18% on average over the next years.
EPS Next Y-21.33%
EPS Next 2Y-4.7%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y0.23%
Revenue Next 3Y1.18%
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
The Price/Earnings ratio is 3.29, which indicates a rather cheap valuation of HLF.
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.
The average S&P500 Price/Earnings ratio is at 27.28. HLF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.08, 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.
When comparing the Price/Forward Earnings ratio of HLF to the average of the S&P500 Index (23.53), we can say HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.29 | ||
| Fwd PE | 3.08 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.45 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The decent profitability rating of HLF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.7%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
No dividends for HLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HERBALIFE LTD
NYSE:HLF (1/14/2025, 8:04:00 PM)
After market: 6.25 +0.07 (+1.13%)6.18
-0.28 (-4.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners110.86%
Inst Owner Change0.02%
Ins Owners1.83%
Ins Owner Change-0.58%
Market Cap622.88M
Analysts70.91
Price Target9.89 (60.03%)
Short Float %13.69%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)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)0%
PT rev (3m)-25.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.5%
EPS NY rev (1m)0%
EPS NY rev (3m)13.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.29 | ||
| Fwd PE | 3.08 | ||
| P/S | 0.12 | ||
| P/FCF | 3.45 | ||
| P/OCF | 2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.58 |
EPS(TTM)1.88
EY30.42%
EPS(NY)2.01
Fwd EY32.48%
FCF(TTM)1.79
FCFY28.95%
OCF(TTM)3.09
OCFY50.07%
SpS49.62
BVpS-9.47
TBVpS-13.49
PEG (NY)N/A
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 | 1.97 |
F-Score7
WACC6.31%
ROIC/WACC3.55
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)-23.58%
EPS 3Y-15.32%
EPS 5Y-5.09%
EPS Q2Q%-12.31%
EPS Next Y-21.33%
EPS Next 2Y-4.7%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-2.97%
Revenue growth 5Y0.69%
Sales Q2Q%-3.2%
Revenue Next Year-1.1%
Revenue Next 2Y0.23%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
EBIT growth 1Y-3.42%
EBIT growth 3Y-12.49%
EBIT growth 5Y-9.03%
EBIT Next Year30.93%
EBIT Next 3Y13.97%
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%