Herbalife (HOO) AI Stock Analysis

Herbalife

(Frankfurt:HOO)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Sustained Sales and Volume GrowthFour consecutive quarters of reported and constant-currency sales growth, supported by 5.8% worldwide volume growth, indicate improving demand and distributor activity. This provides a durable foundation for revenue expansion and suggests recent performance is broader than a one-time pricing benefit.

Negative Factors

Aggressive Capital StructurePersistently negative equity and sizable debt reduce financial flexibility and increase the consequences of any operating downturn. Although debt has declined from 2021 levels, the aggressive capital structure leaves less capacity for investment and makes deleveraging an important continuing requirement.

Herbalife (HOO) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.35B
Dividend Yield: ―
Average Volume (3M): 334
Price to Earnings (P/E): 8.2
Beta (1Y): 0.33
Revenue Growth: -1.62%
EPS Growth: -54.25%
Country: Germany
Employees: 8,500
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

Herbalife Business Overview & Revenue Model

Company Description

Herbalife Nutrition Ltd. is a global enterprise dedicated to providing comprehensive nutritional solutions. Its market presence extends across various international regions, including North America, Mexico, Central and South America, Europe, the Midd...

Herbalife Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:3.89%|Next Earnings Date:Nov 01, 2026

Earnings Call SentimentPositive

The call was broadly positive. Herbalife reported four consecutive quarters of net sales growth, strong worldwide volume growth, robust performance in India, Asia Pacific, and Latin America, improved cash generation, lower interest expense, and progress on personalized nutrition initiatives. The company also maintained full-year growth guidance and raised the constant-currency adjusted EBITDA midpoint. These positives outweighed the reported GAAP loss, lower gross margin, higher tax rate, foreign-exchange headwinds, regional declines in EMEA and China, and input-cost pressure.

Positive Updates

Net Sales Growth Exceeds Guidance

Second-quarter net sales were $1.3 billion, up 5.4% year over year and at the high end of the 1.5% to 5.5% guidance range. Constant-currency net sales increased 5.8%, approximately 80 basis points above the high end of guidance. This was the fourth consecutive quarter of year-over-year reported and constant-currency net sales growth.

Negative Updates

Gross Margin Decline

Second-quarter gross profit margin was 77.7%, down 30 basis points year over year. The decline reflected approximately 50 basis points from country mix, 20 basis points from higher other costs, 20 basis points from higher inventory reserves, and 10 basis points from changes related to self-manufacturing and sourcing, partially offset by 60 basis points of pricing benefits.

Company Guidance

For the third quarter, Herbalife expects foreign exchange to be a modest headwind to net sales and adjusted EBITDA, with reported net sales to increase 0.5% to 4.5% year over year including a 100 basis point currency headwind, constant currency net sales to increase 1.5% to 5.5% year over year, reported adjusted EBITDA in the range of $160 million to $180 million, constant currency adjusted EBITDA in the range of $165 million to $185 million, and capital expenditures in the range of $15 million to $25 million; for the full year, reported and constant currency net sales are expected to increase 2.5% to 5.5% year over year, reported adjusted EBITDA is expected to be in the range of $670 million to $690 million, constant currency adjusted EBITDA in the range of $690 million to $710 million, 2026 capital expenditures are expected to be $50 million to $70 million, capitalized SaaS implementation costs are expected to be $35 million to $55 million incremental to CapEx, the adjusted effective tax rate is expected to be approximately 35%, the company is still targeting a net leverage ratio below 2.0x by the end of the year, and its commitment to repay more than $600 million by the end of 28 remains a core priority.

Herbalife Risk Analysis

Herbalife disclosed 35 risk factors in its most recent earnings report. Herbalife reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Herbalife Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

DE:HOO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LFVN	59Neutral	$74.03M	14.70	15.25%	3.23%	-20.10%	-49.17%
BRBR	58Neutral	$1.07B	6.41	-35.53%	―	5.86%	-19.48%
SMPL	54Neutral	$977.20M	-6.58	-10.23%	―	-6.51%	-266.08%
NATR	51Neutral	$215.55M	12.01	11.00%	―	6.77%	34.53%
NAII	40Underperform	$6.71M	-0.31	-33.23%	―	9.08%	-52.59%

* Consumer Defensive Sector Average

Performance Comparison

DE:HOO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:HOO	Herbalife Ltd	11.49	4.46	63.54%
SMPL	The Simply Good Foods Company	11.25	-8.58	-43.27%
NAII	Natural Alternatives International	1.07	-1.66	-60.81%
NATR	Nature's Sunshine Products	12.25	-1.51	-10.97%
LFVN	LifeVantage Corp	5.88	-1.24	-17.39%
BRBR	Bellring Brands Inc Class A	9.17	-21.22	-69.83%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Herbalife AI Stock Analysis