Hain Celestial Group Inc

HAIN

Food and Kindred Products

Mkt Cap

$632.5M

PE

-6.97

Debt

$785.1M

Cash

$49.55M

EV

$1.368B

FCF

$86.26M

Market Cap

$632.5M

P/E Ratio

-6.97

Debt

$785.1M

Cash

$49.55M

EV

$1.368B

FCF

$86.26M

Charts data: {"Earnings":[{"time":"2014-06-29","value":139851000},{"time":"2015-06-29","value":167896000},{"time":"2016-06-29","value":47429000},{"time":"2017-06-29","value":67430000},{"time":"2018-06-29","value":9694000},{"time":"2019-06-29","value":-183314000},{"time":"2020-06-29","value":-80407000},{"time":"2021-06-29","value":77364000},{"time":"2022-06-29","value":77873000},{"time":"2023-06-29","value":-116537000}],"Sales":[{"time":"2014-06-29","value":2153611000},{"time":"2015-06-29","value":2688515000},{"time":"2016-06-29","value":2885374000},{"time":"2017-06-29","value":2853111000},{"time":"2018-06-29","value":2457769000},{"time":"2019-06-29","value":2302468000},{"time":"2020-06-29","value":2053903000},{"time":"2021-06-29","value":1970302000},{"time":"2022-06-29","value":1891793000},{"time":"2023-06-29","value":1796643000}],"Net Margins":[{"time":"2014-06-29","value":0.06493791125695401},{"time":"2015-06-29","value":0.062449344712601565},{"time":"2016-06-29","value":0.01643773042940014},{"time":"2017-06-29","value":0.023633850908709828},{"time":"2018-06-29","value":0.003944227468081826},{"time":"2019-06-29","value":-0.07961630737104707},{"time":"2020-06-29","value":-0.039148392110046094},{"time":"2021-06-29","value":0.03926504667812346},{"time":"2022-06-29","value":0.04116359453703444},{"time":"2023-06-29","value":-0.06486374866904555}],"Assets":[{"time":"2014-06-29","value":2965317000},{"time":"2015-06-29","value":3097270000},{"time":"2016-06-29","value":3008080000},{"time":"2017-06-29","value":2931104000},{"time":"2018-06-29","value":2946674000},{"time":"2019-06-29","value":2582620000},{"time":"2020-06-29","value":2188452000},{"time":"2021-06-29","value":2205908000},{"time":"2022-06-29","value":2458384000},{"time":"2023-06-29","value":2258639000}],"Stockholders Equity":[{"time":"2014-06-29","value":1619867000},{"time":"2015-06-29","value":1771687000},{"time":"2016-06-29","value":1664514000},{"time":"2017-06-29","value":1712832000},{"time":"2018-06-29","value":1737049000},{"time":"2019-06-29","value":1519319000},{"time":"2020-06-29","value":1443554000},{"time":"2021-06-29","value":1522883000},{"time":"2022-06-29","value":1083168000},{"time":"2023-06-29","value":1017907000}],"ROE":[{"time":"2014-06-29","value":0.08633486576367072},{"time":"2015-06-29","value":0.09476617483788051},{"time":"2016-06-29","value":0.028494203112740417},{"time":"2017-06-29","value":0.03936755034936293},{"time":"2018-06-29","value":0.005580729156172336},{"time":"2019-06-29","value":-0.12065537257152711},{"time":"2020-06-29","value":-0.05570072196814251},{"time":"2021-06-29","value":0.050801013603802785},{"time":"2022-06-29","value":0.07189374132175248},{"time":"2023-06-29","value":-0.1144868833793264}],"ROA":[{"time":"2014-06-29","value":0.07680022068466878},{"time":"2015-06-29","value":0.07675953339553865},{"time":"2016-06-29","value":0.04998537272944868},{"time":"2017-06-29","value":0.037803162221470135},{"time":"2018-06-29","value":0.03598633578061231},{"time":"2019-06-29","value":-0.005763914164685475},{"time":"2020-06-29","value":0.025608055374301105},{"time":"2021-06-29","value":0.04867836736618209},{"time":"2022-06-29","value":0.04258122408866963},{"time":"2023-06-29","value":-0.03790778428956553}]}

The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices. In addition, the company offers hot-eating desserts, cookies, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips, whole grain chips, pita chips, and puffs; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, body washes, sunscreens, and lotions under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores in approximately 80 countries worldwide. The company was incorporated in 1993 and is headquartered in Lake Success, New York.

Sector

10-Q
9/30/23
10-K
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-Q
9/30/22
10-K
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-Q
9/30/21
10-K
6/30/21
10-Q
3/31/21
10-Q
12/31/20
10-Q
9/30/20
10-K
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-Q
9/30/19
10-K
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-Q
9/30/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Hain Celestial Group Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$86.26M	$77.02M	$68.77M	$61.41M	$54.83M	$48.96M	$43.72M	$39.04M	$34.86M	$31.12M	$27.79M	$277.9M
DCF		$66.97M	$52M	$40.38M	$31.35M	$24.34M	$18.9M	$14.68M	$11.39M	$8.847M	$6.87M	$68.7M
Value	$344.4M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -6.8%

Earnings Stability -46%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	6.2%	1.6%	2.4%	0.39%	-8%	-3.9%	3.9%	4.1%	-6.5%	-5.1%
ROA	7.7%	5%	3.8%	3.6%	-0.58%	2.6%	4.9%	4.3%	-3.8%	-0.88%
ROE	9.5%	2.8%	3.9%	0.56%	-12%	-5.6%	5.1%	7.2%	-11%	-9.6%

What is the average Net Margin?

The average Net Margin over the past 5 years is -1.65%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.28%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +1.82%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.58%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -2.71%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.24%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	6.52	6.88	4.48	14.69	-24.10	2.96	1.85	22.26	21.48	9.10
Debt Equity	0.49	0.53	0.44	0.43	0.44	0.20	0.15	0.83	0.82	0.83
MIN
Graham Stability	-	-	57%	10%	-440%	-	-	-	-470%	-470%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.10.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.91.

What is the Graham’s Stability?

Graham’s Stability measure stands at -4.67.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	-6.5%	-6.1%	-4.4%	-5%	-2.6%
Net Income	-	-	-	-	0.21%
Stockholders Equity	-6.8%	-10%	-11%	-6%	-2.2%
FCF	-16%	-5%	-26%	-3.3%	-2.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -6.07%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.6%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.21%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -10.14%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.19%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -5.03%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.12%.