HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLF - KYG4412G1010 - Common Stock
14.18 USD
+0.45 (+3.28%)
14.24 USD
+0.06 (+0.42%)
Overall HLF gets a fundamental rating of 6 out of 10. We evaluated HLF against 36 industry peers in the Personal Care Products industry. HLF has an excellent profitability rating, but there are some minor concerns on its financial health. HLF scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
Each year in the past 5 years HLF has been profitable.
HLF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.89%, HLF belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
HLF has a better Return On Invested Capital (25.82%) than 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLF is significantly above the industry average of 11.83%.
The last Return On Invested Capital (25.82%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| 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 Profit Margin of 6.46%. This is in the better half of the industry: HLF outperforms 72.22% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
The Operating Margin of HLF (12.61%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of HLF has declined.
HLF's Gross Margin of 77.96% is amongst the best of the industry. HLF outperforms 86.11% of its industry peers.
In the last couple of years the Gross Margin of HLF has remained more or less at the same level.
| 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
HLF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HLF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
HLF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.56 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score (2.56) 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's Debt to FCF ratio of 9.30 is fine compared to the rest of the industry. HLF outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 2.56 |
ROIC/WACC3.39
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HLF should not have too much problems paying 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 77.78% 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 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%.
Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
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
The Earnings Per Share is expected to grow by 21.64% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.21% on average over the next years.
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
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
A Price/Earnings ratio of 6.95 indicates a rather cheap valuation of HLF.
Based on the Price/Earnings ratio, HLF is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (26.59), we can say HLF is valued rather cheaply.
The Price/Forward Earnings ratio is 5.39, which indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 97.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 5.39 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than HLF, based on the Enterprise Value to EBITDA ratio.
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 | 6.75 | ||
| EV/EBITDA | 4.19 |
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 21.64% in the coming years.
PEG (NY)0.87
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% |
14.18
+0.45 (+3.28%)
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 Cap1.46B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts77.5
Price TargetN/A
Short Float %11.34%
Short Ratio5.88
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)3.57%
PT rev (3m)3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.5%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 5.39 | ||
| P/S | 0.3 | ||
| P/FCF | 6.75 | ||
| P/OCF | 4.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.19 |
EPS(TTM)2.04
EY14.39%
EPS(NY)2.63
Fwd EY18.56%
FCF(TTM)2.1
FCFY14.81%
OCF(TTM)2.95
OCFY20.79%
SpS48.03
BVpS-5.92
TBVpS-9.96
PEG (NY)0.87
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 | 2.56 |
F-Score7
WACC7.61%
ROIC/WACC3.39
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.