Helen of Troy remains an oversold gem. A seller of a variety of home and cleaning products, the company has pulled back over the course of 2025 from the $60 range to less than $26 per share. However, both earnings and the balance sheet of the company remain remarkably strong. On assets alone, HELE not only commands a solid valuation of $73.65 per share, which has grown over the course of its price decline, while its debt to capital remains below 31% as of last report. Most recent earnings, though down nearly 85% quarter over quarter, are still solidly positive and projected to recover absent unforeseen circumstances. On a fundamental basis, the discount is truly eye-popping.
Helen of Troy by Evelyn De Morgan (1898, London)
Jitters over Chinese business and tariffs made be overdone. The market continues to heavily discount HELE relative to its underlying value and growth in large part because, firstly, it has global exposure and specifically outsized exposure to the Chinese market and, secondly, because it is exposed to the vagaries of consumer spending. Retail companies as a whole have faced headwinds from broad global economic uncertainty. However, Helen of Troy did something novel in the face of these issues - it shortened and shifted its supply chains. Much of their product slated for sale in the US has now shifted manufacturing to friendlier non-Chinese countries, and Chinese production in turn has been shifted to sell into non-US markets. This isn’t a foolproof plan, and it has come with costs, but it has kept the company earnings more solidly in the black than many analysts expected at the cost of a short-term hit to their bottom line. Consumer spending, for its part, has also remained remarkably robust, despite pullbacks in producer purchasing. This is one of those companies that has an eye on long-term reward and consequence, even if the market punishes them in the short-term.
HELE’s next earnings report is slated for Thursday, October 9th, which will partly determine whether or not we will eat our hats over this news release. Nothing is guaranteed in the markets. The Woodworth Fund maintains a position bought in July at an average cost basis of $22.14. Based on our proprietary fundamental & technical analysis, the company could easily break out from here. With a long term time horizon in mind, we could easily see HELE above $60. As such, it is still a buy in our opinion.
Please note that the Woodworth Contrarian Stock & Bond Fund, LP, of which the Millegan Brothers manage and are invested in, currently holds a position of HELE as of the publication date of this article. They may or may not choose to decrease or increase their exposure to this name for any reason at any time. This is not a recommendation to buy or sell HELE or any other name - investments incur significant risk, our risk tolerance may be significantly higher than the average investor, and any discussion in this article does not take into consideration your individual circumstances.
Quinn Millegan (left) & Drew Millegan (right)
About the Authors: Brothers Drew Millegan and Quinn Millegan manage the Woodworth Contrarian Stock & Bond Fund, a hedge fund based in McMinnville, Oregon. They grew up in the finance world, and specialize in contrarian investment strategies in the US Public and Private markets.
DON’T FOLLOW THE CROWD. CALL US TODAY & INVEST CONTRARIAN.
If you’re seeking liquid access to institutional insights within a hands-on managed, direct investment portfolio featuring differentiated strategies, the Woodworth Contrarian Fund is open to new capital. We prioritize personalized service and building lasting relationships with our investors — because your goals deserve tailored attention and transparent communication.
Ready to explore how our contrarian approach can complement your portfolio? Reach out directly to our team for detailed fund information, eligibility for accredited investors, and next steps.
Stay informed by subscribing to the Millegan Memo and listening to the Capital Call podcast, where we share timely perspectives and in-depth market analysis.
Your next investment opportunity begins with a conversation — contact us today to learn more.
How well do narratives help inform your perspective?
Disclaimer
The user woodworthfund has a position in NasdaqGS:HELE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
