Hain Celestial (HAIN) AI Stock Analysis

• Market Cap: $159.75M
• Dividend Yield: N/A
• Average Volume (3M): 3.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: -8.50%
• EPS Growth: -186.18%
• Country: US
• Employees: 2,786
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Packaged Foods
• EPS (TTM): 0.07
• Shares Outstanding: 90,253,490
• 10 Day Avg. Volume: 5,837,129
• 30 Day Avg. Volume: 3,033,093
• PEG Ratio: <0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.07
• Enterprise Value/Market Cap: 5.57
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 31.37
• 1Y Price Target: $3.44
• Price Target Upside: 94.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Hain Celestial's overall stock score reflects substantial challenges, primarily driven by weak financial performance due to declining revenues and profitability. The technical analysis further suggests a bearish outlook, compounded by negative valuation metrics. The earnings call provides cautious optimism but is overshadowed by current underperformance and strategic uncertainties.

Positive Factors

Financial Stability

The business is projected to remain free cash flow positive and not in violation of debt covenants.

International Business

The international business is stabilized and returning to growth, and a turnaround in North America is anticipated, presenting an opportunity to purchase shares at a significant valuation discount.

Product Trends

Despite disappointing results, the company's on-brand products in on-trend categories are expected to facilitate a move back to profitability.

Negative Factors

Financial Performance

Hain Celestial Group reported weaker-than-expected results for the quarter, with revenue and adjusted EBITDA below estimates.

Leadership and Strategic Uncertainty

The immediate departure of the CEO has led to a comprehensive review of the company's portfolio, with limited visibility into the strategic process.

Market Perception

Shares are trading at a significant discount compared to peers, with market perceptions of the company being structurally challenged.

Hain Celestial Business Overview & Revenue Model

Company Description

The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices. In addition, the company offers hot-eating desserts, cookies, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips, whole grain chips, pita chips, and puffs; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, body washes, sunscreens, and lotions under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores in approximately 80 countries worldwide. The company was incorporated in 1993 and is headquartered in Lake Success, New York.

How the Company Makes Money

Hain Celestial generates revenue by manufacturing, marketing, distributing, and selling a diverse range of natural and organic products. Its key revenue streams include the sales of packaged grocery products, snacks, beverages, and personal care items through various retail channels such as supermarkets, health food stores, and online platforms. The company leverages strategic partnerships and acquisitions to expand its portfolio and market reach, enhancing its brand presence and competitive edge. Factors such as increased consumer demand for organic and health-focused products and the company's global distribution network contribute significantly to its earnings.

Hain Celestial Financial Statement Overview

Summary

Hain Celestial faces significant financial challenges with declining revenues and profitability concerns. The balance sheet is moderately stable with low leverage, but the negative net income impacts the return on equity. Cash flows remain positive, providing some cushion, but the company needs to address operational inefficiencies and cost management to improve its financial health.

Income Statement

Hain Celestial has experienced declining revenues over the years, with a noticeable drop in revenue from $1.89 billion in 2022 to $1.66 billion in TTM 2024. The company has faced challenges in maintaining profitability, evident from negative net income in recent periods. The gross profit margin stands at 22.1% for TTM 2024, indicating pressure on cost management. EBIT and EBITDA margins are also weak, reflecting operational inefficiencies and challenges in generating positive earnings.

Balance Sheet

The balance sheet shows a mixed picture, with a debt-to-equity ratio of 0.10 for TTM 2024, which indicates low leverage. However, the return on equity is concerning due to negative net income, suggesting inefficiencies in generating returns for shareholders. The equity ratio is healthy at 41.0%, showcasing a solid equity base relative to total assets.

Cash Flow

Hain Celestial's cash flow position is relatively stable, with positive operating cash flow of $101.8 million in TTM 2024. The free cash flow to net income ratio is not meaningful due to negative net income, but the positive free cash flow of $68.9 million indicates decent cash generation capacity. The company needs to enhance its profitability to improve cash flow metrics further.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.66B	1.74B	1.80B	1.89B	1.97B	2.05B
	Gross Profit
369.74M	380.83M	396.41M	427.44M	491.62M	465.77M
	EBIT
-104.73M	-18.95M	-85.62M	104.68M	193.67M	203.47M
	EBITDA
-59.80M	21.60M	-31.04M	158.46M	160.04M	94.33M
	Net Income Common Stockholders
-174.77M	-75.04M	-116.54M	77.87M	77.36M	27.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.55M	54.31M	53.36M	65.51M	75.87M	37.77M
	Total Assets
2.15B	2.12B	2.26B	2.46B	2.21B	2.19B
	Total Debt
859.95M	835.71M	918.76M	996.12M	316.95M	365.74M
	Net Debt
810.40M	781.41M	865.40M	930.61M	241.08M	327.96M
	Total Liabilities
1.20B	1.17B	1.24B	1.38B	683.02M	744.90M
	Stockholders Equity
944.49M	942.91M	1.02B	1.08B	1.52B	1.44B
Cash Flow		Free Cash Flow
68.92M	82.89M	38.94M	40.28M	125.21M	90.27M
	Operating Cash Flow
101.79M	116.36M	66.82M	80.24M	196.76M	151.17M
	Investing Cash Flow
-8.32M	-23.92M	-19.64M	-288.31M	-2.36M	252.46M
	Financing Cash Flow
-82.69M	-89.73M	-63.06M	212.79M	-162.44M	-404.28M

Hain Celestial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAIN, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 3.41, and below the 200-day MA of 6.12, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 28.54 is Positive, neither overbought nor oversold. The STOCH value of 18.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAIN.

Hain Celestial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	74 Outperform	$264.99M	26.98	6.42%	―	2.00%	-37.09%
LWAY	71 Outperform	$371.11M	41.20	13.64%	―	16.67%	-20.96%
MAMA	69 Neutral	$249.64M	70.71	16.69%	―	19.41%	-43.88%
Sector *	64 Neutral	$8.72B	14.80	5.05%	174.27%	3.54%	3.26%
LSF	58 Neutral	$78.68M	―	-7.38%	―	25.04%	87.51%
HAIN	42 Neutral	$159.75M	―	-31.83%	―	-8.50%	-186.18%
BYND	20 Underperform	$176.65M	―	44.21%	―	-2.19%	55.86%

Hain Celestial Corporate Events

Hain Celestial Announces CEO Departure Amidst Challenges

On May 7, 2025, Hain Celestial announced the departure of Wendy P. Davidson as President and CEO, with Alison E. Lewis stepping in as Interim President and CEO. This leadership change comes amid disappointing fiscal third-quarter results, highlighted by an 11% year-over-year decline in net sales and a significant net loss. Despite challenges, the company is focusing on strategic initiatives to improve value, including simplifying operations, enhancing brand innovation, and strengthening digital capabilities. The transition and strategic review aim to address underperformance in North America and leverage growth in international markets.

Spark’s Take on HAIN Stock

According to Spark, TipRanks’ AI Analyst, HAIN is a Neutral.

Hain Celestial faces significant financial challenges with declining revenues and negative earnings, reflected in a weak financial performance score. Technical indicators further suggest a bearish trend, with the stock underperforming major moving averages. Valuation metrics are unattractive due to negative earnings, while the earnings call provides only cautious optimism for future improvements. Overall, the stock’s score reflects these substantial challenges.

To see Spark’s full report on HAIN stock, click here.