DB:HOO

Stock Analysis Report

Herbalife Nutrition

Executive Summary

Herbalife Nutrition Ltd. develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.

Rewards

PE ratio (21.2x) is below the Personal Products industry average (22.9x)

Earnings are forecast to grow 16.7% per year

Earnings grew by 64.5% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Proven track record with limited growth.


Similar Companies

Share Price & News

How has Herbalife Nutrition's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HOO

2.8%

DE Personal Products

0.7%

DE Market


1 Year Return

-18.9%

HOO

22.5%

DE Personal Products

15.6%

DE Market

Return vs Industry: HOO underperformed the German Personal Products industry which returned 20.1% over the past year.

Return vs Market: HOO underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

HOOIndustryMarket
7 Day0%2.8%0.7%
30 Day-1.9%1.2%1.7%
90 Day20.5%4.5%6.3%
1 Year-18.9%-18.9%25.3%22.5%19.2%15.6%
3 Year-13.3%-13.3%53.1%42.9%18.3%7.9%
5 Year54.6%54.6%68.7%50.5%26.8%9.4%

Price Volatility Vs. Market

How volatile is Herbalife Nutrition's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Herbalife Nutrition undervalued compared to its fair value and its price relative to the market?

21.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HOO (€41.6) is trading above our estimate of fair value (€35.84)

Significantly Below Fair Value: HOO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HOO is good value based on its PE Ratio (21.2x) compared to the Personal Products industry average (22.9x).

PE vs Market: HOO is poor value based on its PE Ratio (21.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: HOO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HOO has negative assets, so we can't compare its PB Ratio to the XE Personal Products industry average.


Next Steps

Future Growth

How is Herbalife Nutrition forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOO's forecast earnings growth (16.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: HOO's earnings (16.7% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: HOO's earnings are forecast to grow, but not significantly.

Revenue vs Market: HOO's revenue (3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: HOO's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HOO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Herbalife Nutrition performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOO has high quality earnings.

Growing Profit Margin: HOO's current net profit margins (6.3%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: HOO's earnings have declined by -4.4% per year over the past 5 years.

Accelerating Growth: HOO's earnings growth over the past year (64.5%) exceeds its 5-year average (-4.4% per year).

Earnings vs Industry: HOO earnings growth over the past year (64.5%) exceeded the Personal Products industry -1.9%.


Return on Equity

High ROE: HOO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Herbalife Nutrition's financial position?


Financial Position Analysis

Short Term Liabilities: HOO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HOO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HOO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HOO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: HOO's debt is well covered by operating cash flow (24.4%).

Interest Coverage: HOO's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: HOO has a high level of physical assets or inventory.

Debt Coverage by Assets: HOO has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Herbalife Nutrition's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.5%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HOO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HOO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HOO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HOO is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HOO's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Herbalife Nutrition's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Michael Johnson (64yo)

1yrs

Tenure

US$5,350,932

Compensation

Mr. Michael O. Johnson has been the Chairman of Herbalife Nutrition Ltd. since June 1, 2017 and serves as its Chief Executive Officer since January 2019. He served as an Interim Chief Executive Officer at  ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: HOO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

5.4yrs

Average Tenure

66yo

Average Age

Experienced Board: HOO's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Johnson (64yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: US$5.35m
  • Dave Pezzullo (53yo)

    COO & Chief of Staff

    • Compensation: US$2.56m
  • Susan Peterson

    • John Agwunobi (54yo)

      Co-President and Chief Health & Nutrition Officer

      • Tenure: 1.7yrs
      • Compensation: US$2.38m
    • John DeSimone (52yo)

      Co-President & Chief Strategic Officer

      • Tenure: 1.7yrs
      • Compensation: US$2.83m
    • Bosco Chiu (52yo)

      Executive VP & CFO

      • Tenure: 1.7yrs
      • Compensation: US$1.48m
    • Henry Wang

      Executive VP

      • Rhonda Vetere

        Executive VP & Chief Information Officer

        • Tenure: 0.2yrs
      • Eric Monroe

        Director of Investor Relations

        • Bobby Irani

          Senior VP & Principal Accounting Officer

          • Tenure: 1yrs

        Board Members

        • Jim Nelson (69yo)

          Lead Director

          • Tenure: 0.5yrs
          • Compensation: US$275.49k
        • Lou Ignarro (77yo)

          Member of Nutrition Advisory Board

          • Michael Johnson (64yo)

            Chairman & CEO

            • Tenure: 1yrs
            • Compensation: US$5.35m
          • Michael Montelongo (63yo)

            Independent Director

            • Tenure: 4.8yrs
            • Compensation: US$256.49k
          • David Heber

            Chairman of Nutrition Advisory Board

            • Nataniel Viuniski

              Member of Advisory Board

              • Marion Flechtner-Mors

                Member of Nutrition Advisory Board

                • Tenure: 14.6yrs
              • Rocio Medina

                VP of Worldwide Nutrition Training & Member of Nutrition Advisory Board

                • Maria Otero (68yo)

                  Independent Director

                  • Tenure: 6.1yrs
                  • Compensation: US$266.49k
                • Al LeFevre (59yo)

                  Independent Director

                  • Tenure: 1.8yrs
                  • Compensation: US$224.19k

                Company Information

                Herbalife Nutrition Ltd.'s company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Herbalife Nutrition Ltd.
                • Ticker: HOO
                • Exchange: DB
                • Founded: 1980
                • Industry: Personal Products
                • Sector: Household
                • Market Cap: US$6.472b
                • Listing Market Cap: US$5.840b
                • Shares outstanding: 137.29m
                • Website: https://www.herbalife.com

                Number of Employees


                Location

                • Herbalife Nutrition Ltd.
                • PO Box 80210
                • Los Angeles
                • California
                • 90080
                • United States

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                HLFNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2004
                HOODB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2004

                Biography

                Herbalife Nutrition Ltd. develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. It provides science-based products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition. The company offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products comprising dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products consisting of facial skin, body, and hair care products; and energy, sports, and fitness products, such as N-R-G tea and energy drink products. It also provides literature, promotional, and other materials, including start-up kits, sales tools, and educational materials. The company offers its products through own retail stores, as well as through independent service providers, sales representatives, and sales officers. The company was formerly known as Herbalife Ltd. and changed its name to Herbalife Nutrition Ltd. in April 2018. Herbalife Nutrition Ltd. was founded in 1980 and is headquartered in Los Angeles, California. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/20 20:38
                End of Day Share Price2020/01/20 00:00
                Earnings2019/09/30
                Annual Earnings2018/12/31


                Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.