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The Hain Celestial Group (HAIN)
NASDAQ:HAIN
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Hain Celestial
(NASDAQ:HAIN)
Rating:46Neutral
Price Target:
$1.50
▼(-17.13% Downside)
Positive Factors
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 Portfolio
Despite disappointing results, the company's on-brand products in on-trend categories are expected to facilitate a move back to profitability.
Valuation
HAIN trades at an EV/EBITDA multiple of 6.0x our CY26 EBITDA estimate, below the peer average of 16.8x, excluding HAIN.
Negative Factors
Financial Performance
The Hain Celestial Group reported weaker-than-expected results for the quarter, with revenue and adjusted EBITDA below estimates.
Leadership Stability
The abrupt CEO transition and strategic review of the portfolio indicate instability within the company.
Market Conditions
Reducing F4Q25 Estimates as Challenging Market Conditions Persist.
Hain Celestial (HAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$162.46M
Dividend YieldN/A
Average Volume (3M)1.13M
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-8.50%
EPS Growth-186.18%
CountryUS
Employees2,786
SectorConsumer Defensive
Sector Strength48
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.07
Shares Outstanding90,253,490
10 Day Avg. Volume864,635
30 Day Avg. Volume1,131,486
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap6.82
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit3.10
Enterprise Value/Ebitda-6.86
Forecast
1Y Price Target
$3.00Price Target Upside65.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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: |
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Negative
The earnings call revealed significant challenges, particularly in the North American segment and in snack and beverage categories, with declining sales and margins. Despite some positive developments, such as international growth and cost reductions, the negative aspects outweighed the positives.Q3-2025 Updates
Positive Updates
International Segment Recovery
The international segment returned to year-over-year organic net sales growth, overcoming previous service level challenges.
Reduction in Lease Expenses
Since fiscal year 2023, the company reduced its lease expenses by over $5 million annually, supporting their hub-and-spoke work model.
Decreased Interest Costs
Interest costs fell 16% year-over-year to $12 million in the quarter, driven by lower outstanding borrowings and a reduction in interest rates.
Negative Updates
Decline in Organic Net Sales
The company reported a 5% decline in organic net sales and adjusted EBITDA of $34 million, over 20% below last year's performance.
North America Segment Weakness
Organic net sales in the North America segment declined 10% year-over-year, primarily driven by lower sales in Snacks and Baby and Kids.
Challenges in Snacks and Beverages
Significant underperformance in Snacks and a challenging start to the hot tea season for Celestial Seasonings negatively impacted results.
Impact of Inflation and Trade Investment
Pricing actions did not keep pace with trade investment and cost inflation across the portfolio, contributing to financial underperformance.
Adjusted Gross Margin Decline
Adjusted gross margin fell by 50 basis points to 21.8% in the third quarter.
Company Guidance
During the Hain Celestial Group, Inc. fiscal third quarter 2025 earnings call, the company provided guidance indicating a challenging period with several key metrics falling short of expectations. Organic net sales declined by 5%, with adjusted EBITDA at $34 million, representing a decrease of over 20% compared to the previous year. The company reported an adjusted gross margin of 21.8%, down by 50 basis points from the prior year. The adjusted EBITDA margin was 8.6%, a 140 basis point decrease, while SG&A expenses decreased by 6% to $63 million, which was 16.1% of net sales compared to 15.2% in the previous year. Additionally, Hain Celestial revised their full-year fiscal 2025 outlook, projecting organic net sales growth to decline by approximately 5% to 6%, with an adjusted EBITDA of around $125 million and gross margin of approximately 21.5%. The call also highlighted the company's strategic focus on simplifying operations, accelerating innovation, improving pricing execution, and strengthening digital capabilities to address current challenges and drive future growth.Hain Celestial Financial Statement Overview
Summary
Hain Celestial faces declining revenues and negative profit margins, indicating profitability challenges. While leverage has improved, financial stability is reduced, and there are cash flow challenges despite positive operating cash flow.Income Statement
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.45
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.55
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.74B | 1.80B | 1.89B | 1.97B | 2.05B |
| Gross Profit | 380.83M | 396.41M | 427.44M | 491.62M | 465.77M |
| EBITDA | 21.60M | -33.02M | 162.91M | 167.02M | 104.17M |
| Net Income | -75.04M | -116.54M | 77.87M | 77.36M | -80.41M |
Balance Sheet | |||||
| Total Assets | 2.12B | 2.26B | 2.46B | 2.21B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 54.31M | 53.36M | 65.51M | 75.87M | 37.77M |
| Total Debt | 835.71M | 929.25M | 1.01B | 327.82M | 378.07M |
| Total Liabilities | 1.17B | 1.24B | 1.38B | 683.02M | 744.90M |
| Stockholders Equity | 942.91M | 1.02B | 1.08B | 1.52B | 1.44B |
Cash Flow | |||||
| Free Cash Flow | 82.89M | 38.94M | 40.28M | 125.21M | 90.27M |
| Operating Cash Flow | 116.36M | 66.82M | 80.24M | 196.76M | 151.17M |
| Investing Cash Flow | -23.92M | -19.64M | -288.31M | -2.36M | 252.46M |
| Financing Cash Flow | -89.73M | -63.06M | 212.79M | -162.44M | -404.28M |
Hain Celestial Technical Analysis
Positive
1.81
Price Trends
1.68
Positive
1.97
Negative
3.71
Negative
Market Momentum
0.03
Negative
54.73
Neutral
56.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAIN, the sentiment is Positive. The current price of 1.81 is above the 20-day moving average (MA) of 1.75, above the 50-day MA of 1.68, and below the 200-day MA of 3.71, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $297.16M | 22.59 | 9.15% | ― | 4.33% | -6.33% | |
80 Outperform | $300.13M | 71.76 | 18.79% | ― | 17.04% | -23.81% | |
77 Outperform | $463.95M | 43.08 | 14.46% | ― | 9.19% | -23.91% | |
63 Neutral | $20.41B | 14.67 | -2.93% | 3.10% | 2.04% | -6.12% | |
46 Neutral | $162.46M | ― | -31.83% | ― | -8.50% | -186.18% | |
42 Neutral | $61.75M | ― | -8.34% | ― | 22.79% | 74.00% | |
39 Underperform | $191.62M | ― | 44.21% | ― | -5.17% | 56.19% |
* Consumer Defensive Sector Average
Performance Comparison
HAIN
Hain Celestial
1.81
-6.69
-78.71%
LWAY
Lifeway Foods
29.77
9.80
49.07%
NATR
Nature's Sunshine Products
16.80
3.07
22.36%
BYND
Beyond Meat
2.37
-3.58
-60.17%
MAMA
Mama's Creations
9.13
1.39
17.96%
LSF
Laird Superfood
5.70
1.88
49.21%
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.