Herbalife Ltd.
Find Ratings ReportsHERBALIFE LTD's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. HERBALIFE LTD has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 16.24% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1215.0 | 1180.8 |
EBITDA ($mil) | 105.6 | 121.5 |
EBIT ($mil) | 77.4 | 93.3 |
Net Income ($mil) | 10.2 | 54.4 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 590.5 | 510.5 |
Total Assets ($mil) | 2809.4 | 2732.0 |
Total Debt ($mil) | 2769.5 | 2921.8 |
Equity ($mil) | -1060.3 | -1265.9 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 45.94 | 46.95 |
EBITDA Margin | 8.69 | 10.28 |
Operating Margin | 6.37 | 7.9 |
Sales Turnover | 1.8 | 1.9 |
Return on Assets | 5.06 | 11.76 |
Return on Equity | 0.0 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.1 | 1.39 |
Debt/Capital | 1.62 | 1.76 |
Interest Expense | 41.3 | 38.8 |
Interest Coverage | 1.87 | 2.4 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 99.2 | 97.9 |
Div / share | 0.0 | 0.0 |
EPS | 0.1 | 0.55 |
Book value / share | -10.69 | -12.93 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1857018.0 | 1742151.0 |
SELL. HERBALIFE LTD's P/E ratio indicates a significant discount compared to an average of 23.56 for the Merchant Wholesalers, Nondurable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, HERBALIFE LTD proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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HLF 6.35 | Peers 23.56 | HLF 2.50 | Peers 12.26 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. HLF is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HLF is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HLF 3.73 | Peers 14.94 | HLF 0.14 | Peers 1.03 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. HLF is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HLF trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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HLF NM | Peers 20.75 | HLF -55.91 | Peers 39.44 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HLF's P/B is negative making this valuation measure meaningless. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HLF is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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HLF 0.18 | Peers 0.57 | HLF -2.73 | Peers 2.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HLF is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HLF significantly trails its peers on the basis of sales growth. |
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