NYSE:HLF

Stock Analysis Report

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Market Cap

US$5.5b

Last Updated

2021/07/31 00:15 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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: HLF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HLF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

HLF

0.5%

US Personal Products

-0.5%

US Market


1 Year Return

-0.6%

HLF

68.2%

US Personal Products

35.9%

US Market

Return vs Industry: HLF underperformed the US Personal Products industry which returned 71.2% over the past year.

Return vs Market: HLF underperformed the US Market which returned 37.5% over the past year.


Shareholder returns

HLFIndustryMarket
7 Day-1.8%0.5%-0.5%
30 Day-3.4%1.3%0.3%
90 Day11.3%3.2%3.1%
1 Year-0.6%-0.6%69.6%68.2%38.0%35.9%
3 Year-13.7%-13.7%94.5%87.2%62.9%52.7%
5 Year51.9%51.9%130.7%112.6%121.7%97.3%

Long-Term 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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLF ($50.94) is trading below our estimate of fair value ($105.43)

Significantly Below Fair Value: HLF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HLF is good value based on its PE Ratio (13.3x) compared to the US Personal Products industry average (19.2x).

PE vs Market: HLF is good value based on its PE Ratio (13.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLF's forecast earnings growth (10% per year) is above the savings rate (2%).

Earnings vs Market: HLF's earnings (10% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: HLF's revenue (5.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HLF's revenue (5.6% 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 HLF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Herbalife Nutrition performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLF has high quality earnings.

Growing Profit Margin: HLF's current net profit margins (8.2%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: HLF's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: HLF's earnings growth over the past year (82.3%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: HLF earnings growth over the past year (82.3%) exceeded the Personal Products industry 8.6%.


Return on Equity

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


Financial Health

How is Herbalife Nutrition's financial position?


Financial Position Analysis

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

Long Term Liabilities: HLF 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: HLF has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: HLF's debt is well covered by operating cash flow (23.1%).

Interest Coverage: HLF's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HLF is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

John Agwunobi (56 yo)

1.33yrs

Tenure

US$7,235,342

Compensation

Dr. John O. Agwunobi, M.D., M.B.A., M.P.H., serves as Chief Executive Officer at Herbalife Nutrition Ltd. since March 30, 2020 and its Chairman of the Board for April 29, 2020. Dr. Agwunobi served as Chief...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD7.24M) is about average for companies of similar size in the US market ($USD6.42M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HLF's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: HLF's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HLF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Herbalife Nutrition Ltd.
  • Ticker: HLF
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$5.503b
  • Shares outstanding: 108.03m
  • Website: https://www.herbalife.com

Number of Employees


Location

  • Herbalife Nutrition Ltd.
  • PO Box 80210
  • Los Angeles
  • California
  • 90080-0210
  • United States

Listings


Biography

Herbalife Nutrition Ltd. offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company provides products in the areas of...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 00:15
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.