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The Hain Celestial (HAIN)
:HAIN
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Hain Celestial
(NASDAQ:HAIN)44Neutral
Positive Factors
Distribution Expansion
HAIN announced the planned launch of a fourth regional distribution center based in Savannah, GA, which is expected to double the company's US network capacity and reduce delivery distances by 66% annually.
Recovery Signs
Analyst reiterates a buy recommendation based on early signs of recovery in the second half of fiscal year 2025.
Negative Factors
Earnings Miss
The company's GAAP loss per share was significantly wider than estimates, with adjusted EBITDA below expectations.
Sales Decline
N. America sales were lighter, with organic sales down 9%.
Hain Celestial (HAIN) vs. S&P 500 (SPY)
Market Cap
$342.04M
Dividend YieldN/A
Average Volume (3M)1.99M
Price to Earnings (P/E)―
Beta (1Y)0.22
Revenue Growth-6.68%
EPS Growth-9.71%
CountryUS
Employees2,786
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)-1.94
Shares Outstanding90,246,860
10 Day Avg. Volume2,170,636
30 Day Avg. Volume1,994,848
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.21
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.11Price Target Upside67.40% Upside
Rating ConsensusHold
Number of Analyst Covering10
Hain Celestial Business Overview & Revenue Model
Company DescriptionHain Celestial Group, Inc. (HAIN) is a leading natural and organic food and personal care products company. Operating primarily in North America and Europe, Hain Celestial offers a broad portfolio of products across various categories, including snacks, plant-based foods, tea, personal care, and baby food. The company is known for its commitment to health and wellness, providing consumers with high-quality, environmentally friendly, and sustainable options.
How the Company Makes MoneyHain 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 financial challenges with declining revenues and profitability concerns. While the balance sheet is moderately stable with low leverage, negative net income impacts the return on equity. Cash flows are positive, providing some cushion but highlighting a need for improved operational efficiency.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.40
Negative
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.45
Neutral
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.50
Neutral
| 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 |
| 367.43M | 380.83M | 396.41M | 427.44M | 491.62M | 465.77M | EBIT |
| -30.97M | -18.95M | -85.62M | 104.68M | 193.67M | 203.47M | EBITDA |
| -45.69M | 27.85M | -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 | ||||
| 56.20M | 54.31M | 53.36M | 65.51M | 75.87M | 37.77M | Total Assets |
| 1.96B | 2.12B | 2.26B | 2.46B | 2.21B | 2.19B | Total Debt |
| 82.38M | 835.71M | 918.76M | 996.12M | 316.95M | 365.74M | Net Debt |
| 26.18M | 781.41M | 865.40M | 930.61M | 241.08M | 327.96M | Total Liabilities |
| 1.16B | 1.17B | 1.24B | 1.38B | 683.02M | 744.90M | Stockholders Equity |
| 804.73M | 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
Negative
3.65
Price Trends
4.93
Negative
6.55
Negative
7.01
Negative
Market Momentum
-0.40
Negative
32.34
Neutral
16.67
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 3.65 is below the 20-day moving average (MA) of 4.12, below the 50-day MA of 4.93, and below the 200-day MA of 7.01, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAIN.
Hain Celestial Risk Analysis
Hain Celestial disclosed 33 risk factors in its most recent earnings report. Hain Celestial 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
Hain Celestial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $22.09B | 28.16 | 15.23% | 2.08% | 0.92% | 15.79% | |
72 Outperform | $14.33B | 38.54 | 30.81% | ― | 12.90% | 50.20% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% | |
61 Neutral | $59.36M | ― | -23.75% | ― | -9.51% | 83.29% | |
54 Neutral | $670.43M | ― | -6.77% | ― | -5.50% | 89.98% | |
54 Neutral | $1.54B | 56.52 | 1.74% | ― | -4.59% | -42.81% | |
44 Neutral | $342.04M | ― | -19.41% | ― | -6.68% | -9.71% |
* Consumer Defensive Sector Average
Performance Comparison
HAIN
Hain Celestial
3.65
-5.67
-60.84%
FARM
Farmer Brothers Company
2.61
-1.01
-27.90%
MKC
McCormick & Company
82.73
15.87
23.74%
STKL
SunOpta
5.68
-1.22
-17.68%
THS
TreeHouse Foods
30.33
-5.51
-15.37%
SFM
Sprouts Farmers
144.71
81.40
128.57%
Hain Celestial Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -22.17% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements in operating cash flow, adjusted EBITDA margin improvement, and recovery in certain segments, these were partially offset by challenges in organic net sales, in-store performance issues in snacks, and supply chain problems. The call indicates cautious optimism for a pivot to growth in the second half, but acknowledges the volatile macroeconomic environment.Highlights
Strong Operating Cash Flow and Debt Reduction
Despite a disappointing revenue quarter, the company generated strong operating cash flow of $25 million and reduced net debt by $12 million.
Adjusted EBITDA Improvement
Adjusted EBITDA in the quarter was $38 million, with an adjusted EBITDA margin increase of 350 basis points from the first quarter.
Baby and Kids Segment Recovery
Sequential improvement in baby and kids, with Earth's Best infant formula supply fully recovered, leading to a 29% year-on-year increase in consumption.
Positive Developments in Snacks Distribution
Garden Veggie delivered mid-single-digit distribution growth, and Terra saw strong base unit velocities up 9%. Distribution expansion up 17% year on year expected in the back half.
Away From Home Sales Growth
Away from home net sales grew 38% in North America and 52% internationally.
Lowlights
Organic Net Sales Decline
Organic net sales declined 7% in the second quarter, driven by a 5-point decrease in volume mix and a 2-point decrease in price.
In-Store Performance Issues in Snacks
Sales growth hindered by poor in-store performance in snacks, driven by marketing and promotion effectiveness.
Short-Term Supply Challenges
Supply challenges in the international segment, where demand outpaced supply in several core categories and brands.
Impact of Restructuring Charges
Charges totaling $7 million associated with actions under the restructuring program impacted financial results.
Lower Sales in Personal Care
North American segment saw a decline in personal care sales, partly due to SKU simplification initiatives.
Company Guidance
During The Hain Celestial Group's fiscal second quarter 2025 earnings call, the company provided guidance that indicated a cautious outlook for the full year due to a softer than expected front half and a volatile macro environment. Organic net sales declined by 7% in the second quarter, with free cash flow reaching $25 million and net debt reduced by $12 million. Adjusted EBITDA was reported at $38 million, with a margin increase of 350 basis points from the first quarter. The company anticipates organic net sales to be down 2% to 4% for fiscal 2025 with adjusted EBITDA expected to be flat year over year. They foresee gross margin expanding by at least 90 basis points and free cash flow of at least $60 million. Looking forward, Hain aims for a 3% plus sustainable organic net sales growth rate by fiscal 2027, with a gross margin target of at least 26% and adjusted EBITDA margins exceeding 12% by the same year.Hain Celestial Corporate Events
Executive/Board ChangesShareholder Meetings
Hain Celestial Expands Share Plan and Approves Key Proposals
Positive
Nov 5, 2024
The Hain Celestial Group, Inc. expanded its 2022 Long Term Incentive and Stock Award Plan by increasing the shares available for issuance from 9.2 million to 12.95 million, following shareholder approval at the 2024 Annual Meeting. Key proposals such as the election of directors, executive compensation approval, and the ratification of Ernst & Young LLP as independent accountants were also passed, reflecting strong shareholder support.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.