NYSE:HLF

Stock Analysis Report

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

7.5%

HLF

-0.6%

US Personal Products

0.07%

US Market


1 Year Return

-24.9%

HLF

26.3%

US Personal Products

8.9%

US Market

Return vs Industry: HLF underperformed the US Personal Products industry which returned 26.3% over the past year.

Return vs Market: HLF underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HLFIndustryMarket
7 Day7.5%-0.6%0.07%
30 Day2.0%-1.2%-0.3%
90 Day2.9%-0.7%-1.6%
1 Year-24.9%-24.9%28.3%26.3%11.3%8.9%
3 Year36.9%36.9%43.3%36.0%46.3%36.8%
5 Year65.5%65.5%79.9%61.8%62.1%44.3%

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?

19.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLF ($41.03) is trading above our estimate of fair value ($12.05)

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


Price To Earnings Ratio

PE vs Industry: HLF is poor value based on its PE Ratio (19.2x) compared to the Personal Products industry average (17.5x).

PE vs Market: HLF is poor value based on its PE Ratio (19.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HLF is poor value based on its PEG Ratio (1x)


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.


Next Steps

Future Growth

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

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLF's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: HLF's earnings (18.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: HLF's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HLF's revenue (3.8% 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


Next Steps

Past Performance

How has Herbalife Nutrition performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLF's earnings have declined by -7.6% per year over the past 5 years.

Accelerating Growth: HLF's earnings growth over the past year (74.8%) exceeds its 5-year average (-7.6% per year).

Earnings vs Industry: HLF earnings growth over the past year (74.8%) exceeded the Personal Products industry 25.2%.


Return on Equity

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


Return on Assets

ROA vs Industry: HLF has a higher Return on Assets than the Personal Products industry average last year.


Return on Capital Employed

ROCE Improving: HLF has improved its Return on Capital Employed over the past 3 years.


Next Steps

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 not well covered by operating cash flow (16.9%).

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


Balance Sheet

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

Debt Coverage by Assets: HLF 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%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

1.4yrs

Average management tenure


CEO

Michael Johnson (64yo)

0.8yrs

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

1.4yrs

Average Tenure

53yo

Average Age

Experienced Management: HLF's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

66yo

Average Age

Experienced Board: HLF's board of directors are considered experienced (5.2 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


Management Team

  • Michael Johnson (64yo)

    Chairman & CEO

    • Tenure: 0.8yrs
    • Compensation: US$5.35m
  • Dave Pezzullo (53yo)

    COO & Chief of Staff

    • Tenure: 0yrs
    • Compensation: US$2.56m
  • Susan Peterson

    • Tenure: 0yrs
  • John Agwunobi (54yo)

    Co-President and Chief Health & Nutrition Officer

    • Tenure: 1.4yrs
    • Compensation: US$2.38m
  • John DeSimone (52yo)

    Co-President & Chief Strategic Officer

    • Tenure: 1.4yrs
    • Compensation: US$2.83m
  • Bosco Chiu (52yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.48m
  • Henry Wang

    Executive VP

    • Tenure: 0yrs
  • Julia Bailey

    Chief Compliance Officer & Senior VP

    • Tenure: 0yrs
  • Eric Monroe

    Director of Investor Relations

    • Tenure: 0yrs
  • Bobby Irani

    Senior VP & Principal Accounting Officer

    • Tenure: 0.8yrs

Board Members

  • Jim Nelson (69yo)

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: US$275.49k
  • Lou Ignarro (77yo)

    Member of Nutrition Advisory Board

    • Tenure: 0yrs
  • Michael Johnson (64yo)

    Chairman & CEO

    • Tenure: 0.8yrs
    • Compensation: US$5.35m
  • Michael Montelongo (63yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$256.49k
  • David Heber

    Chairman of Nutrition Advisory Board

    • Tenure: 0yrs
  • Nataniel Viuniski

    Member of Advisory Board

    • Tenure: 0yrs
  • Marion Flechtner-Mors

    Member of Nutrition Advisory Board

    • Tenure: 14.3yrs
  • Rocio Medina

    VP of Worldwide Nutrition Training & Member of Nutrition Advisory Board

    • Tenure: 0yrs
  • Maria Otero (68yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$266.49k
  • Al LeFevre (59yo)

    Independent Director

    • Tenure: 1.5yrs
    • 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: HLF
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$5.795b
  • Shares outstanding: 141.25m
  • 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 product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:55
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.