Herbalife Ltd.

Health Care
Other Pharmaceuticals
www.herbalife.com

Earnings Score
Safety Score

Market Cap $799.18M
Debt $2.62B
Cash $417.90M
EV $3.00B
FCF $180.30M

Earnings

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Sales & Net Margins

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Earnings	$86.60M
EBIT	$335.20M
ROA	13%
FCF	$180.30M
Equity	-$954.20M
Growth Stability	37%
PE	9.23
PEG	-0.39
PB	-0.84
P/FCF	4.43
P/S	0.16
Price/Cash	0.52
Debt/Equity	-2.75
Debt/FCF	14.54
Net Margins	2%
Gross Margins	78%
Op. Margins	7%
Earnings CAGR	-5%
Sales Growth YoY	-3%
Sales Growth QoQ	-3%
Sales CAGR	2%
FCF CAGR	-10%
Equity CAGR	0%
Earnings Stability	0.1

Earnings Growth YoY	11%
Earnings Growth QoQ	909%
Earnings CAGR 5Y	-24%
Sales CAGR 5Y	-1%
FCF CAGR 5Y	-25%
Earnings CAGR 3Y	-5%
Sales CAGR 3Y	-5%
FCF CAGR 3Y	-18%
Market Cap	$799.18M
Revenue	$5.00B
Assets	$2.65B
Total Debt	$2.62B
Cash	$417.90M
Shares Outstanding	100.4M
EV	3B
Earnings Score	5%
Safety Score	21%
Working Capital	-40.4M
Current Ratio	0.97
Gross Profit	$3.88B
Shares Growth 3y	0%
Equity Growth QoQ	-8%
Equity Growth YoY	-14%

Assets & ROA

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Stockholders Equity & ROE

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Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.

SEC Filings

Direct access to Herbalife Ltd. (HLF) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Herbalife Ltd. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Herbalife Ltd. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 10%

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Herbalife Ltd. Discounted Cash Flow

Fully customizable DCF calculator online for Herbalife Ltd..

Years

Calculation mode

= $954M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$180M	$163M	$147M	$132M	$119M	$107M	$97M	$87M	$79M	$71M	$64M	$640M
DCF		$148M	$121M	$99M	$81M	$67M	$55M	$45M	$37M	$30M	$25M	$247M
Value	$954M

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	6%	8%	6%	5%	6%	6%	7%	8%	6%	3%	2%
ROA	-	24%	18%	21%	24%	21%	21%	26%	20%	13%	13%
ROE	-	-634%	132%	-64%	-41%	-80%	-44%	-32%	-25%	-13%	-

Bad Net Margins (2.02%)

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

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.37	6.51	5.02	5.85	5.56	4.96	9.31	14.01	12.99	14.54
Debt over Equity	-5.72	-34.61	7.42	-7.43	-4.56	-5.01	-2.99	-2.07	-2.17	-2.73	-2.75
Growth Stability	-	-	-	71%	100%	100%	100%	100%	85%	37%	37%

Bad Debt/FCF ratio (14.54)

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

Good Debt/Equity ratio (-2.75)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (37%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-10%	0%	-1%	10%	-0%	14%	5%	-10%	-3%	-1%
Earnings YoY growth	-	10%	-23%	-18%	39%	5%	20%	20%	-28%	-56%	-24%
Equity YoY growth	-	-84%	-467%	-271%	116%	-46%	120%	63%	-9%	-16%	-
FCF YoY growth	-	63%	-59%	121%	14%	-38%	47%	-40%	-37%	13%	-25%