Want to see HLF full AI Analyst Report?
Top Page
Herbalife
(NYSE:HLF)
Select Model
Select Model
Rating:55Neutral
Price Target:
$12.50
▲(0.89% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by balance-sheet risk (negative equity and high debt) and weaker profitability versus earlier years, partially offset by improving cash generation and a low P/E valuation. Technical signals are neutral and corporate updates are broadly constructive but not enough to overcome leverage-related risk.
Positive Factors
Sustained revenue growth
Repeated year-on-year sales growth indicates improving demand and broader commercial momentum rather than a single-quarter rebound. Continued growth supports distributor activity, strengthens the revenue base, and gives Herbalife a platform to fund product development and debt reduction over the coming quarters.
Negative Factors
Negative equity and high debt
Persistently negative equity and substantial debt leave Herbalife with limited balance-sheet flexibility and increase vulnerability to operating setbacks. Although debt has declined from 2021 levels, the aggressive capital structure can constrain investment choices and make downturns or weaker cash generation more consequential.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Repeated year-on-year sales growth indicates improving demand and broader commercial momentum rather than a single-quarter rebound. Continued growth supports distributor activity, strengthens the revenue base, and gives Herbalife a platform to fund product development and debt reduction over the coming quarters.
Read all positive factors
Herbalife Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows the share of sales coming from each region, revealing where Herbalife depends on distributors and which countries drive growth or decline. Heavy concentration in a few markets increases exposure to local economic swings, currency moves, and regulatory or political risk, while rising sales in new regions point to expansion opportunities. Comparing regional trends also highlights whether management’s growth strategy is gaining traction or if the business is retrenching in certain areas.
Shows the share of sales coming from each region, revealing where Herbalife depends on distributors and which countries drive growth or decline. Heavy concentration in a few markets increases exposure to local economic swings, currency moves, and regulatory or political risk, while rising sales in new regions point to expansion opportunities. Comparing regional trends also highlights whether management’s growth strategy is gaining traction or if the business is retrenching in certain areas.
Data provided by:
The Fly
The FlyHerbalife (HLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend Yield1.8%
Average Volume (3M)1.69M
Price to Earnings (P/E)7.7
Beta (1Y)0.45
Revenue Growth5.52%
EPS Growth-50.47%
CountryUS
Employees8,500
SectorGeneral
Sector StrengthN/A
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.60
Shares Outstanding104,803,380
10 Day Avg. Volume1,990,378
30 Day Avg. Volume1,685,883
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)-2.57
Price to Sales (P/S)0.26
P/FCF Ratio5.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.00Price Target Upside37.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.37
Revenue Forecast (FY)$5.26B
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 M...
How the Company Makes Money
Herbalife makes money primarily by selling nutrition and personal care products through a direct selling/distributor network. Revenue is generated when products are purchased from Herbalife by its independent Members (distributors) and by wholesal...
Herbalife Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized clear operational and financial progress—including net sales and adjusted EBITDA beating guidance, strong India performance, meaningful refinancing savings (~$45M annualized), improved cash generation ($114M operating cash flow), and strategic M&A and digital initiatives to accelerate personalized nutrition. Offsetting these positives were region-specific challenges: softness in EMEA and North America (weather and timing), a notable decline in China (volume -18%), modest gross margin pressure from mix and input cost dynamics, and an expected $20–25M FY EBITDA headwind from India GST mismatches. On balance, the company presented multiple durable positives that outweighed the localized and timing-related headwinds, while setting conservative guidance assumptions for FX and tax impacts.Positive Updates
Revenue Growth Above Guidance
First quarter net sales of $1.3 billion, up 7.8% year-over-year and up 5.4% on a constant currency basis, exceeding guidance and marking the third consecutive quarter of year-over-year net sales growth.
Negative Updates
EMEA Weakness
EMEA reported net sales up 1% year-over-year but constant currency net sales declined 6%, driven by an 11% decline in volume that outweighed favorable pricing and FX tailwinds.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
First quarter net sales of $1.3 billion, up 7.8% year-over-year and up 5.4% on a constant currency basis, exceeding guidance and marking the third consecutive quarter of year-over-year net sales growth.
Read all positive updates
Company Guidance
Herbalife reiterated a disciplined outlook anchored by a strong Q1 (net sales $1.3B, +7.8% YoY / +5.4% cc; adjusted EBITDA $176M; cash from operations $114M; adjusted diluted EPS $0.64), and guided Q2 net sales to +1.5%–5.5% reported (+1%–5% cc) with adjusted EBITDA $150M–$170M, and full‑year 2026 net sales to +1.5%–5.5% reported (+1%–5% cc) and adjusted EBITDA $675M–$705M; management noted a reduced FX tailwind (now ~50 bps vs. prior 100 bps) and specific headwinds including an ~ $10M QoQ EBITDA impact in Q2 ($5M China grant timing, $5M India GST mismatch) and an expected India GST-related drag of ~$20M–$25M (≈40–50 bps) on full‑year adjusted EBITDA. They reaffirmed capex of $50M–$80M (Q2 $15M–$25M), capitalized SaaS $35M–$55M, an anticipated adjusted effective tax rate of ~30%, and balance‑sheet targets following a $1.45B refinancing (including $800M 7.75% notes) that should yield ~ $45M of annual cash interest savings; leverage stood at 2.7x total (net leverage 2.1x) with a target to get net leverage below 2.0x by year‑end and reduce gross debt to ~ $1.4B by 2028.Herbalife Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.20B | 5.04B | 4.99B | 5.06B | 5.20B | 5.80B |
| Gross Profit | 3.95B | 3.81B | 3.89B | 3.87B | 4.03B | 4.56B |
| EBITDA | 527.90M | 610.70M | 509.10M | 482.20M | 679.50M | 821.50M |
| Net Income | 164.20M | 228.30M | 254.30M | 142.20M | 321.30M | 447.20M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 2.79B | 2.73B | 2.81B | 2.73B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 370.50M | 353.10M | 415.30M | 575.20M | 508.00M | 601.50M |
| Total Debt | 2.20B | 2.34B | 2.47B | 2.77B | 2.92B | 3.01B |
| Total Liabilities | 3.32B | 3.30B | 3.53B | 3.87B | 4.00B | 4.21B |
| Stockholders Equity | -474.50M | -515.10M | -801.10M | -1.06B | -1.27B | -1.39B |
Cash Flow | ||||||
| Free Cash Flow | 425.20M | 252.90M | 163.40M | 222.50M | 196.10M | 308.90M |
| Operating Cash Flow | 497.60M | 333.30M | 285.40M | 357.50M | 352.50M | 460.30M |
| Investing Cash Flow | -83.30M | -108.70M | -84.60M | -134.80M | -156.20M | -156.40M |
| Financing Cash Flow | -241.80M | -295.50M | -335.30M | -148.30M | -264.70M | -728.60M |
Herbalife Technical Analysis
Positive
12.39
Price Trends
12.37
Positive
13.00
Negative
14.07
Negative
Market Momentum
-0.06
Positive
51.80
Neutral
70.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLF, the sentiment is Positive. The current price of 12.39 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 12.37, and below the 200-day MA of 14.07, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLF.
Herbalife Risk Analysis
Herbalife disclosed 35 risk factors in its most recent earnings report. Herbalife reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Herbalife Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $1.21B | 7.27 | -35.53% | ― | 5.86% | -19.48% | |
58 Neutral | $78.30M | 15.63 | 15.25% | 3.04% | -20.10% | -49.17% | |
57 Neutral | $1.01B | -5.28 | -12.33% | 3.00% | -4.48% | -250.67% | |
57 Neutral | $246.69M | 13.75 | 11.00% | 5.48% | 6.77% | 34.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $1.30B | 7.74 | -32.15% | 1.80% | 5.52% | -50.47% | |
38 Underperform | $13.05M | -0.88 | -21.48% | ― | 12.37% | -69.61% |
* General Sector Average
HLF
Herbalife
12.38
2.50
25.30%
SMPL
Simply Good Foods
11.45
-16.73
-59.37%
NAII
Natural Alternatives International
2.08
-1.33
-39.00%
NATR
Nature's Sunshine Products
14.02
-3.12
-18.20%
LFVN
LifeVantage
6.25
-4.85
-43.67%
BRBR
BellRing Brands
10.39
-25.38
-70.95%
Herbalife Corporate Events
Business Operations and StrategyExecutive/Board Changes
Herbalife Announces Upcoming CEO Leadership Transition
Neutral
Aug 31, 2026
On August 31, 2026, Herbalife announced that Chief Executive Officer Stephan Gratziani will transition out of his role, effective October 31, 2026. The planned leadership change marks a significant governance event that could influence the company...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Herbalife Reports Q2 Growth and Updates Financial Guidance
Positive
Aug 5, 2026
In the second quarter ended June 30, 2026, Herbalife reported net sales of $1.3 billion, up 5.4% year-on-year and marking a fourth consecutive quarter of topline growth, while adjusted EBITDA of $166.6 million and adjusted EPS of $0.51 came in tow...
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.