Herbalife (HLF) AI Stock Analysis

• Market Cap: $824.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.49
• Revenue Growth: -2.25%
• EPS Growth: 288.79%
• Country: US
• Employees: 8,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.59
• Shares Outstanding: 103,105,680
• 10 Day Avg. Volume: 1,145,358
• 30 Day Avg. Volume: 1,194,831
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.54
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.76
• Enterprise Value/Ebitda: 4.70
• 1Y Price Target: $10.50
• Price Target Upside: 35.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $9.00 ▲(16.13% Upside)

Herbalife's overall stock score reflects a mix of financial challenges and strategic advancements. The most significant factor is the company's financial performance, which is hindered by declining revenues and high leverage. While the valuation suggests the stock is undervalued, technical indicators show bearish momentum. The earnings call provided some positive insights, but ongoing sales declines and currency headwinds remain concerns.

Positive Factors

New Product Launches

The introduction of new products like MultiBurn and a healthy lifespan supplement can enhance Herbalife's market presence and drive long-term growth by expanding its product portfolio and attracting new customers.

Debt Reduction

Reducing debt improves financial stability and lowers interest expenses, enhancing Herbalife's ability to invest in growth initiatives and withstand economic fluctuations over time.

North America Volume Growth

Achieving volume growth in North America signals potential recovery and market strength, indicating successful strategies that could be replicated in other regions for sustained growth.

Negative Factors

Declining Revenue

Continued revenue decline suggests challenges in maintaining market share and consumer demand, which could impact long-term growth prospects unless addressed with strategic initiatives.

High Financial Leverage

High leverage and negative equity position pose risks to financial stability, limiting Herbalife's ability to invest in growth and respond to market changes, impacting long-term viability.

Currency Headwinds

Currency headwinds can erode international sales and profitability, creating ongoing challenges in managing global operations and impacting financial performance over the medium term.

Herbalife Business Overview & Revenue Model

Company Description

Herbalife Nutrition Ltd. is a global nutrition company that sells dietary supplements and personal care products. Founded in 1980, Herbalife operates in the health and wellness sector, focusing on weight management, nutrition, and personal care. The company offers a range of products including protein shakes, vitamins, herbal teas, and skincare items, all aimed at promoting a healthy lifestyle. Herbalife primarily markets its products through a multi-level marketing (MLM) model, utilizing a network of independent distributors to reach consumers worldwide.

How the Company Makes Money

Herbalife generates revenue primarily through the sale of its products, which are distributed by independent distributors who earn commissions based on their sales and the sales of their recruits. This MLM structure creates multiple revenue streams: direct sales to consumers, commissions from distributor sales, and bonuses for distributors based on their sales performance and team sales. Additionally, Herbalife benefits from retail sales through its branded stores and online platforms. The company's earnings are also influenced by promotional partnerships and sponsorships within the fitness and wellness industries, reinforcing its brand presence and driving product demand.

Herbalife Financial Statement Overview

Summary

Herbalife's financial performance is mixed. Strong gross profit margins indicate efficient cost management, but declining revenue and net profit margins highlight challenges in sustaining growth. The balance sheet shows significant financial leverage and negative equity, posing risks to financial stability. Cash flow generation is stable, but high financing outflows suggest potential liquidity pressures.

Income Statement

Herbalife's income statement shows a declining trend in total revenue over the past few years, with a recent TTM total revenue of $4.95 billion, down from $5.20 billion in 2022. The gross profit margin remains strong at approximately 77.39% for the TTM period, indicating efficient cost management. However, the net profit margin has decreased to 5.66% from higher levels in previous years, highlighting challenges in maintaining profitability. The EBIT margin for TTM stands at 9.08%, and EBITDA margin at 10.64%, both reflecting a stable yet pressured operating environment.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity of -$736 million as of TTM, indicating high debt levels relative to assets. The debt-to-equity ratio is not calculable due to negative equity, raising concerns about financial stability. The equity ratio is also negative, further emphasizing the risk associated with high indebtedness. Despite these challenges, total assets remain substantial at $2.68 billion.

Cash Flow

Herbalife's cash flow statement shows a modest free cash flow growth, with TTM free cash flow of $164.4 million, slightly higher than the previous year's $163.4 million. The operating cash flow to net income ratio is 0.97, indicating efficient cash conversion from net income. However, the high levels of financing cash outflows raise concerns about reliance on debt to fund operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	4.99B	5.06B	5.20B	5.80B	5.54B
Gross Profit	3.85B	3.89B	3.87B	4.03B	4.56B	4.39B
EBITDA	620.10M	509.10M	482.20M	672.70M	854.60M	740.90M
Net Income	325.00M	254.30M	142.20M	321.30M	447.20M	372.60M
Balance Sheet
Total Assets	2.74B	2.73B	2.81B	2.73B	2.82B	3.08B
Cash, Cash Equivalents and Short-Term Investments	320.90M	415.30M	575.20M	508.00M	601.50M	1.05B
Total Debt	2.35B	2.47B	2.77B	2.88B	2.96B	2.64B
Total Liabilities	3.39B	3.53B	3.87B	4.00B	4.21B	3.93B
Stockholders Equity	-660.50M	-801.10M	-1.06B	-1.27B	-1.39B	-856.10M
Cash Flow
Free Cash Flow	171.40M	163.40M	222.50M	196.10M	308.90M	516.60M
Operating Cash Flow	265.30M	285.40M	357.50M	352.50M	460.30M	628.60M
Investing Cash Flow	-85.00M	-84.60M	-134.80M	-156.20M	-156.40M	-123.20M
Financing Cash Flow	-227.50M	-335.30M	-148.30M	-264.70M	-728.60M	-320.90M

Herbalife Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLF, the sentiment is Negative. The current price of 7.75 is below the 20-day moving average (MA) of 8.54, below the 50-day MA of 8.98, and below the 200-day MA of 8.14, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLF.

Herbalife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	―	$237.73M	18.07	9.15%	―	4.33%	-6.33%
CENT	―	$1.78B	13.98	8.70%	―	-4.90%	0.29%
JJSF	―	$1.65B	19.72	8.79%	3.61%	0.50%	-4.46%
SMPL	―	$1.95B	19.23	5.86%	―	8.98%	-26.29%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	―	$386.45M	23.76	3.20%	―	5.88%	-68.62%
HLF	―	$824.85M	2.52	―	―	-2.25%	288.79%

Herbalife Corporate Events

Herbalife Ltd’s Earnings Call: Innovation Amid Challenges

Herbalife Ltd’s recent earnings call painted a mixed picture, with a blend of optimism and challenges. The company celebrated significant product innovation and positive momentum in North America, driven by strong distributor engagement and financial performance that exceeded expectations. However, it also faced hurdles, including a decline in net sales and regional difficulties in EMEA and China.

Herbalife Ltd. Reports Strong Q2 Earnings and Raises Guidance

Herbalife Ltd., a global health and wellness company, specializes in nutrition products and offers a business opportunity for independent distributors across more than 90 markets.

Herbalife Reports Q2 2025 Financial Results and Innovations

Herbalife reported its financial results for the second quarter of 2025, with net sales of $1.3 billion, slightly down by 1.7% compared to the previous year, impacted by foreign currency headwinds. The company exceeded its adjusted EBITDA guidance and raised its full-year net sales and adjusted EBITDA outlook. Recent developments include the launch of MultiBurn, a new weight-loss supplement, and the unveiling of the beta version of the Pro2col app, indicating a focus on innovation and expanding product offerings. These initiatives, along with strong distributor engagement programs, are expected to drive future growth and enhance Herbalife’s market position.

The most recent analyst rating on (HLF) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Herbalife stock, see the HLF Stock Forecast page.