HERBALIFE LTD (HLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLF - KYG4412G1010 - Common Stock
12.76 USD
-0.57 (-4.28%)
12.9287 USD
+0.17 (+1.32%)
Taking everything into account, HLF scores 6 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF.
1. Profitability
1.1 Basic Checks
HLF had positive earnings in the past year.
In the past year HLF had a positive cash flow from operations.
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.
Looking at the Return On Invested Capital, with a value of 25.82%, HLF belongs to the top of the industry, outperforming 94.44% 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 11.83%.
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
Looking at the Profit Margin, with a value of 6.46%, HLF is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
HLF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.61%, HLF is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of HLF has declined.
HLF has a Gross Margin of 77.96%. This is amongst the best in 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HLF is creating value.
Compared to 1 year ago, HLF has more shares outstanding
Compared to 5 years ago, HLF has less shares outstanding
HLF has a better debt/assets ratio than last year.
2.2 Solvency
HLF has an Altman-Z score of 2.55. 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.
The Altman-Z score of HLF (2.55) is comparable to the rest of the industry.
HLF has a debt to FCF ratio of 9.30. This is a negative value and a sign of low solvency as HLF would need 9.30 years to pay back of all of its debts.
HLF has a Debt to FCF ratio of 9.30. This is in the better half 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 | 2.55 |
ROIC/WACC3.37
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HLF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, HLF is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
A Quick Ratio of 0.59 indicates that HLF may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, HLF is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
HLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.51%, which is quite good.
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 -0.78% in the past year.
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
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.
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 6.25 indicates a rather cheap valuation of HLF.
Compared to the rest of the industry, the Price/Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 97.22% of the companies listed in the same industry.
HLF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
HLF is valuated cheaply with a Price/Forward Earnings ratio of 4.85.
HLF's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLF is 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 (23.40), we can say HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 4.85 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 97.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 4.06 |
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.
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)0.78
PEG (5Y)N/A
EPS Next 2Y15.87%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
No dividends for HLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.76
-0.57 (-4.28%)
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 Cap1.32B
Revenue(TTM)4.96B
Net Income(TTM)320.70M
Analysts77.5
Price Target12.24 (-4.08%)
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)28.57%
PT rev (3m)28.57%
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 | 6.25 | ||
| Fwd PE | 4.85 | ||
| P/S | 0.27 | ||
| P/FCF | 6.07 | ||
| P/OCF | 4.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.06 |
EPS(TTM)2.04
EY15.99%
EPS(NY)2.63
Fwd EY20.62%
FCF(TTM)2.1
FCFY16.46%
OCF(TTM)2.95
OCFY23.11%
SpS48.03
BVpS-5.92
TBVpS-9.96
PEG (NY)0.78
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 | 2.55 |
F-Score7
WACC7.65%
ROIC/WACC3.37
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.