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The Hain Celestial Group (HAIN)
NASDAQ:HAIN

Hain Celestial (HAIN) AI Stock Analysis

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Hain Celestial

(NASDAQ:HAIN)

Rating:44Neutral
Price Target:
$2.00
▲(20.48%Upside)
Hain Celestial faces multiple challenges impacting its stock score. The most significant factor is its poor financial performance with declining revenues and negative profit margins. Technical analysis indicates strong bearish momentum. Valuation is weak with a negative P/E ratio. The recent earnings call and corporate events also reflect significant operational and leadership challenges, further weighing down the score.
Positive Factors
Financial Health
Based on assumptions, there is sufficient capital to support current operations, with free cash flow prioritized to repay debt.
Market Potential
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 Portfolio
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
The Hain Celestial Group reported weaker-than-expected results for the quarter, with revenue and adjusted EBITDA below estimates.
Leadership Instability
The abrupt CEO transition and strategic review of the portfolio indicate instability within the company.
Sales Decline
There is an ongoing decline in snack sales, raising concerns about potential workplace culture or management changes.

Hain Celestial (HAIN) vs. SPDR S&P 500 ETF (SPY)

Hain Celestial Business Overview & Revenue Model

Company DescriptionHain Celestial (HAIN) is a leading organic and natural products company with a focus on health and wellness. The company operates across several sectors, including food and beverages, personal care, and household products. Hain Celestial's core products include organic snacks, plant-based beverages, and natural personal care items under various brand names such as Terra, Celestial Seasonings, and Earth's Best, catering to health-conscious consumers globally.
How the Company Makes MoneyHain Celestial makes money primarily through the sale of its diverse range of organic and natural products. The company's revenue model is centered on retail and wholesale distribution channels, including supermarkets, health food stores, and online platforms. Key revenue streams include packaged foods, teas, snacks, and personal care items. Hain Celestial benefits from strategic partnerships with major retailers and a strong brand portfolio, which helps in expanding its market reach and enhancing brand recognition. Furthermore, the company's focus on innovation and sustainability aligns with consumer trends, contributing to its earnings.

Hain Celestial Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2025)
|
% Change Since: -40.07%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Negative
The earnings call reflects significant challenges in the company's performance, particularly in North America, with declines in key segments like Snacks and an overall decline in organic net sales. While there are some positive strides in international sales and cost-saving measures, the leadership transition and strategic review indicate deeper issues. The highlights are overshadowed by the multiple areas of concern and underperformance.
Q3-2025 Updates
Positive Updates
International Business Recovery
The international segment returned to organic net sales growth, having resolved first half service level challenges. Organic net sales grew 0.5% in the quarter.
Reduction in Lease Expenses
Since fiscal year 2023, lease expenses have been reduced by over $5 million annually due to the consolidation of office footprints in Canada and the U.K.
Productivity and Efficiency Initiatives
Productivity and efficiency savings continued to partially offset other headwinds in the business, enabling ongoing reduction of working capital to improve cash generation and reduce net debt.
Negative Updates
Decline in Organic Net Sales
Reported a 5% decline in organic net sales for the third quarter, with adjusted EBITDA of $34 million, over 20% below last year's performance.
Underperformance in Key Segments
Underperformance was primarily driven by Snacks, delayed recovery in Earth's Best formula, challenges in the hot tea segment with Celestial Seasonings, and trade investment and inflation impacts.
Leadership and Strategic Review Announced
A leadership transition was announced with Wendy Davidson stepping down. A formal strategic review of the company's portfolio was initiated, indicating potential structural issues.
Adjusted Gross Margin Decline
Adjusted gross margin fell 50 basis points to 21.8% in the third quarter.
Company Guidance
During the Hain Celestial Group's Fiscal Third Quarter 2025 Earnings Call, the company provided guidance and insights into its current challenges and strategic focus. The company reported a 5% decline in organic net sales and an adjusted EBITDA of $34 million, which is over 20% below last year's performance. The shortfall was attributed primarily to four factors: underperformance in Snacks, particularly Garden Veggie, delayed recovery in Earth's Best formula, a challenging start to the hot tea season for Celestial Seasonings, and trade investment and inflation impacts ahead of pricing. The company plans to address these issues by focusing on five key drivers: simplifying the business, accelerating brand renovation and innovation, implementing strategic revenue growth management and pricing actions, driving operational productivity and working capital reduction, and strengthening digital capabilities. Additionally, Hain Celestial has adjusted its financial outlook for fiscal 2025, now expecting organic net sales to decline by approximately 5% to 6%, with adjusted EBITDA of approximately $125 million.

Hain Celestial Financial Statement Overview

Summary
Hain Celestial is experiencing significant challenges in profitability and growth, with declining revenues and negative profit margins. Despite a positive operating cash flow, the company's financial health is under pressure due to reduced equity and financial stability. Improved leverage management with a lower debt-to-equity ratio provides a slight positive.
Income Statement
45
Neutral
Hain Celestial has faced declining revenues over the years, with the TTM showing a notable drop from previous periods. Gross profit margin has decreased to 22.14% in TTM from 22.93% last year, and net profit margin is negative, indicating losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved in the TTM, standing at 0.11, down from 0.89 last year, suggesting better leverage management. However, the return on equity is negative due to losses, and the equity ratio has declined from 44.54% to 37.78% over the year, indicating reduced financial stability.
Cash Flow
55
Neutral
Despite declining net income, operating cash flow remains positive, and the operating cash flow to net income ratio improved to 0.25 in TTM. Free cash flow has decreased, and the free cash flow to net income ratio is positive but lower than previous years, indicating some cash flow challenges.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.62B1.74B1.80B1.89B1.97B2.05B
Gross Profit357.71M380.83M396.41M427.44M491.62M465.77M
EBITDA-161.47M21.60M-33.02M162.91M167.02M104.17M
Net Income-261.16M-75.04M-116.54M77.87M77.36M-80.41M
Balance Sheet
Total Assets1.84B2.12B2.26B2.46B2.21B2.19B
Cash, Cash Equivalents and Short-Term Investments44.42M54.31M53.36M65.51M75.87M37.77M
Total Debt73.55M835.71M929.25M1.01B327.82M378.07M
Total Liabilities1.15B1.17B1.24B1.38B683.02M744.90M
Stockholders Equity696.71M942.91M1.02B1.08B1.52B1.44B
Cash Flow
Free Cash Flow36.41M82.89M38.94M40.28M125.21M90.27M
Operating Cash Flow64.16M116.36M66.82M80.24M196.76M151.17M
Investing Cash Flow-1.03M-23.92M-19.64M-288.31M-2.36M252.46M
Financing Cash Flow-70.10M-89.73M-63.06M212.79M-162.44M-404.28M

Hain Celestial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.66
Price Trends
50DMA
2.04
Negative
100DMA
2.97
Negative
200DMA
5.16
Negative
Market Momentum
MACD
-0.14
Negative
RSI
44.46
Neutral
STOCH
31.69
Neutral
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 1.66 is below the 20-day moving average (MA) of 1.67, below the 50-day MA of 2.04, and below the 200-day MA of 5.16, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 31.69 is Neutral, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$309.16M74.6418.79%17.04%-23.81%
77
Outperform
$274.18M27.756.42%2.00%-37.09%
73
Outperform
$375.67M37.1214.73%12.84%-22.88%
65
Neutral
$27.29B15.33-4.01%3.21%1.02%-0.84%
LSLSF
53
Neutral
$67.44M-7.38%25.04%87.51%
44
Neutral
$149.82M-31.83%-8.50%-186.18%
44
Neutral
$263.83M44.21%-2.19%55.86%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HAIN
Hain Celestial
1.66
-5.32
-76.22%
LWAY
Lifeway Foods
24.91
12.55
101.54%
NATR
Nature's Sunshine Products
14.85
-0.15
-1.00%
BYND
Beyond Meat
3.45
-3.38
-49.49%
MAMA
Mama's Creations
8.64
1.15
15.35%
LSF
Laird Superfood
6.38
1.59
33.19%

Hain Celestial Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Hain Celestial Announces CEO Departure Amidst Challenges
Negative
May 7, 2025

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.

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.Date of analysis: Jun 14, 2025