HERBALIFE LTD (HLF) Stock Fundamental Analysis
NYSE:HLF - New York Stock Exchange, Inc. - KYG4412G1010 - Common Stock - Currency: USD
Overall HLF gets a fundamental rating of 5 out of 10. We evaluated HLF against 35 industry peers in the Personal Care Products industry. HLF has an excellent profitability rating, but there are 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
HLF had positive earnings in the past year.
In the past year HLF had a positive cash flow from operations.
In the past 5 years HLF has always been profitable.
HLF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLF's Return On Assets of 10.45% is fine compared to the rest of the industry. HLF outperforms 77.14% of its industry peers.
HLF has a better Return On Invested Capital (25.78%) than 94.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLF is significantly above the industry average of 15.14%.
The last Return On Invested Capital (25.78%) for HLF is above the 3 year average (21.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | N/A | ||
| ROIC | 25.78% |
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
The Profit Margin of HLF (5.66%) is better than 71.43% of its industry peers.
HLF's Profit Margin has declined in the last couple of years.
HLF has a better Operating Margin (11.56%) than 68.57% of its industry peers.
HLF's Operating Margin has declined in the last couple of years.
HLF's Gross Margin of 78.09% is amongst the best of the industry. HLF outperforms 94.29% 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 | 11.56% | ||
| PM (TTM) | 5.66% | ||
| GM | 78.09% |
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
HLF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.29 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a Altman-Z score of 2.29. This is comparable to the rest of the industry: HLF outperforms 45.71% of its industry peers.
HLF has a debt to FCF ratio of 13.34. This is a negative value and a sign of low solvency as HLF would need 13.34 years to pay back of all of its debts.
HLF's Debt to FCF ratio of 13.34 is in line compared to the rest of the industry. HLF outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.34 | ||
| Altman-Z | 2.29 |
ROIC/WACC3.07
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HLF may have some problems paying its short term obligations.
The Current ratio of HLF (0.97) is worse than 74.29% of its industry peers.
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.
HLF's Quick ratio of 0.54 is on the low side compared to the rest of the industry. HLF is outperformed by 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for HLF have decreased by -4.63% in the last year.
HLF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.08% yearly.
Looking at the last year, HLF shows a decrease in Revenue. The Revenue has decreased by -2.45% in the last 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)-4.63%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%20.41%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-3.37%
3.2 Future
The Earnings Per Share is expected to grow by 21.52% on average over the next years. This is a very strong growth
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.38% yearly.
EPS Next Y8.68%
EPS Next 2Y15.81%
EPS Next 3Y21.52%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y1.71%
Revenue Next 3Y3.38%
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.
When comparing the Revenue 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
A Price/Earnings ratio of 4.17 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 26.98. HLF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.27, the valuation of HLF can be described as very cheap.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 97.14% of the companies in the same industry.
HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 3.27 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 94.29% of the companies in the same industry.
100.00% 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 | 5.33 | ||
| EV/EBITDA | 3.96 |
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.
HLF has a very decent profitability rating, which may justify a higher PE ratio.
HLF's earnings are expected to grow with 21.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y15.81%
EPS Next 3Y21.52%
5. Dividend
5.1 Amount
HLF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:HLF (6/30/2025, 1:29:33 PM)
8.6
-0.13 (-1.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners104.87%
Inst Owner Change6.44%
Ins Owners2.11%
Ins Owner Change0.33%
Market Cap875.91M
Analysts50.91
Price Target8.16 (-5.12%)
Short Float %13.68%
Short Ratio6.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)60.72%
Min EPS beat(2)59.17%
Max EPS beat(2)62.26%
EPS beat(4)4
Avg EPS beat(4)54.51%
Min EPS beat(4)35.7%
Max EPS beat(4)62.26%
EPS beat(8)6
Avg EPS beat(8)28.26%
EPS beat(12)9
Avg EPS beat(12)27.7%
EPS beat(16)12
Avg EPS beat(16)22.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)0.12%
Revenue beat(8)4
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)0%
PT rev (3m)-9.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)0%
EPS NY rev (3m)4.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 3.27 | ||
| P/S | 0.18 | ||
| P/FCF | 5.33 | ||
| P/OCF | 3.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.96 |
EPS(TTM)2.06
EY23.95%
EPS(NY)2.63
Fwd EY30.56%
FCF(TTM)1.61
FCFY18.77%
OCF(TTM)2.67
OCFY31.03%
SpS48.61
BVpS-7.23
TBVpS-11.16
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | N/A | ||
| ROCE | 36.81% | ||
| ROIC | 25.78% | ||
| ROICexc | 32.71% | ||
| ROICexgc | 48.62% | ||
| OM | 11.56% | ||
| PM (TTM) | 5.66% | ||
| GM | 78.09% | ||
| FCFM | 3.32% |
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%
ROICexcg growth 3Y-11.83%
ROICexcg 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-Score6
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.34 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 87.39% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.09% | ||
| Profit Quality | 58.63% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.29 |
F-Score6
WACC8.41%
ROIC/WACC3.07
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)-4.63%
EPS 3Y-25.39%
EPS 5Y-7.08%
EPS Q2Q%20.41%
EPS Next Y8.68%
EPS Next 2Y15.81%
EPS Next 3Y21.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y-4.89%
Revenue growth 5Y0.47%
Sales Q2Q%-3.37%
Revenue Next Year-0.64%
Revenue Next 2Y1.71%
Revenue Next 3Y3.38%
Revenue Next 5YN/A
EBIT growth 1Y40.56%
EBIT growth 3Y-13.6%
EBIT growth 5Y-3.61%
EBIT Next Year36.18%
EBIT Next 3Y18.41%
EBIT Next 5YN/A
FCF growth 1Y33.88%
FCF growth 3Y-19.13%
FCF growth 5Y-14.2%
OCF growth 1Y1.34%
OCF growth 3Y-14.73%
OCF growth 5Y-9.01%