Herbalife Ltd.Find Ratings Reports
HERBALIFE LTD's gross profit margin for the fourth quarter of its fiscal year 2017 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 strong liquidity. Currently, the Quick Ratio is 1.51 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 270.50% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY17||Q4 FY16|
|Net Sales ($mil)||1093.3||1045.0|
|Net Income ($mil)||-63.4||99.4|
|Balance Sheet||Q4 FY17||Q4 FY16|
|Cash & Equiv. ($mil)||1278.8||844.0|
|Total Assets ($mil)||2895.1||2565.4|
|Total Debt ($mil)||2268.1||1447.9|
|Profitability||Q4 FY17||Q4 FY16|
|Gross Profit Margin||54.82||54.63|
|Return on Assets||7.38||10.13|
|Return on Equity||0.0||132.45|
|Debt||Q4 FY17||Q4 FY16|
|Share Data||Q4 FY17||Q4 FY16|
|Shares outstanding (mil)||82.3||93.1|
|Div / share||0.0||0.0|
|Book value / share||-4.07||2.11|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1392660.0||843991.0|
HOLD. HERBALIFE LTD's P/E ratio indicates a discount compared to an average of 47.29 for the Personal Products industry and a significant premium compared to the S&P 500 average of 24.51. 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 price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HERBALIFE LTD proves to trade at a discount to investment alternatives within the industry.
|HLF 43.37||Peers 47.29||HLF 14.38||Peers 23.00|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
HLF is trading at a valuation on par with 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.
|HLF 16.91||Peers 22.19||HLF 0.41||Peers 1.38|
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 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.
|HLF NM||Peers 8.27||HLF -20.67||Peers -1.87|
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.
|HLF 1.92||Peers 3.00||HLF -1.36||Peers 19.02|
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 industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
HLF significantly trails its peers on the basis of sales growth