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Hain Celestial (HAIN) AI Stock Analysis

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HAIN

Hain Celestial

(NASDAQ:HAIN)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
$1.50
▼(-9.09% Downside)
Hain Celestial's overall stock score reflects significant financial and operational challenges. The company's declining revenue, negative profitability, and liquidity concerns weigh heavily on its financial performance. Technical analysis suggests a bearish trend, and valuation metrics are unattractive due to the negative P/E ratio. While the earnings call indicates some positive strategic initiatives, the overall outlook remains cautious.
Positive Factors
Innovation Pipeline
A strong innovation pipeline with new product launches can drive future growth by meeting consumer demand and differentiating the brand.
Cost Reduction Initiatives
Cost reduction initiatives enhance financial flexibility and operational efficiency, supporting long-term profitability improvements.
Leverage Management
Effective leverage management reduces financial risk and increases the company's ability to invest in growth opportunities.
Negative Factors
Decline in Organic Net Sales
A decline in organic net sales indicates challenges in maintaining market share and revenue growth, impacting long-term business stability.
Decreased Adjusted Gross Margin
Decreased margins suggest cost pressures and inefficiencies, which can hinder profitability and competitiveness over time.
Challenges in Snack Segment
Significant sales decline in a key segment indicates potential issues in product appeal or market positioning, affecting overall growth.

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

Hain Celestial Business Overview & Revenue Model

Company DescriptionThe 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 MoneyHain Celestial generates revenue primarily through the sale of its branded organic and natural products across multiple channels, including supermarkets, health food stores, and online retailers. The company's revenue model is supported by a combination of direct sales to retailers and distribution partnerships that expand its market reach. Key revenue streams include sales of food and beverage products, personal care items, and household goods. Additionally, Hain Celestial benefits from strategic partnerships and collaborations with retailers that enhance brand visibility and accessibility, as well as ongoing consumer trends towards healthier eating and sustainable living which drive demand for its product offerings.

Hain Celestial Earnings Call Summary

Earnings Call Date:Sep 15, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant challenges faced by Hain Celestial, including declines in sales and margins, particularly in the snacks segment. However, the company is taking decisive actions to reduce costs and enhance operational efficiency, with a strong focus on innovation to drive future growth.
Q4-2025 Updates
Positive Updates
Strong Innovation Pipeline
The company has launched new products across various categories, including Garden Veggie snacks and Celestial Seasonings teas. The innovation pipeline is stated to be one of the strongest in recent history, with a focus on brand renovation and innovation to drive growth.
Cost Reduction Initiatives
Hain Celestial is implementing a 12% cost reduction in people-related SG&A by restructuring the operating model to be more regional and streamlined, which is expected to improve overall financial flexibility.
Productivity Achievements
The company delivered $67 million in productivity savings in fiscal 2025, with a pipeline in place to achieve more than $60 million in gross savings for fiscal 2026.
Leverage Management
The company managed to reduce net debt by $14 million in the quarter, with an amended credit agreement providing increased financial flexibility.
Negative Updates
Decline in Organic Net Sales
The company reported an 11% decline in organic net sales year-over-year for the fourth quarter, driven by lower sales in both North America and International segments.
Decreased Adjusted Gross Margin
Adjusted gross margin was 20.5%, a decrease of approximately 290 basis points year-over-year, primarily due to lower volume mix, cost inflation, and higher trade spend.
Challenges in Snack Segment
Snacks experienced a 19% decline in organic net sales due to velocity challenges and distribution losses. The segment's adjusted gross margin decreased by 340 basis points.
Ongoing Restructuring Charges
The company took $5 million in restructuring charges in the fourth quarter, with total expected restructuring charges now increased to $100-$110 million by fiscal 2027.
Company Guidance
During the Hain Celestial Fiscal Fourth Quarter 2025 Earnings Call, the company provided guidance focused on several key metrics aimed at improving financial health and operational efficiency. The company reported an organic net sales decline of 11% year-over-year for the fourth quarter, with adjusted gross margin falling to 20.5%, a decrease of 290 basis points. Adjusted EBITDA for the quarter was $20 million, down from $40 million in the previous year, resulting in an adjusted EBITDA margin of 5.5%. Hain Celestial outlined its strategy to drive growth, which includes a 12% cost reduction in people-related SG&A, a restructuring program with anticipated charges of $100 million to $110 million by fiscal 2027, and revenue growth management initiatives to address flat pricing and improve margins. The company also plans to streamline its portfolio by exiting low-margin SKUs and focuses on accelerating brand innovation and digital capabilities to stabilize sales and improve profitability. Additionally, Hain reduced its net debt by $14 million during the quarter, with a leverage ratio of 4.7x, and aims to achieve a long-term leverage ratio of 3x adjusted EBITDA or less.

Hain Celestial Financial Statement Overview

Summary
Hain Celestial faces significant financial challenges across all verticals. The income statement shows declining revenue and profitability, with negative margins indicating operational inefficiencies. The balance sheet reflects reduced leverage but ongoing profitability issues, as evidenced by a negative return on equity. Cash flow analysis reveals liquidity concerns, with negative free cash flow and weak cash generation. The company needs to address these issues to improve its financial health and stability.
Income Statement
45
Neutral
Hain Celestial's income statement reveals significant challenges. The company has experienced a consistent decline in revenue over the past few years, with a negative revenue growth rate of -3.43% in the latest period. Gross profit margins have decreased slightly, and the net profit margin has turned negative, indicating substantial losses. The EBIT and EBITDA margins are also low, reflecting operational inefficiencies. Overall, the income statement suggests declining performance and profitability issues.
Balance Sheet
55
Neutral
The balance sheet shows a mixed picture. The debt-to-equity ratio has improved significantly, dropping from 0.89 to 0.15, indicating reduced leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio remains stable, suggesting a reasonable level of financial stability. While the reduction in debt is a positive sign, the negative ROE highlights ongoing profitability challenges.
Cash Flow
40
Negative
Cash flow analysis indicates deteriorating cash generation capabilities. Free cash flow has turned negative, and the free cash flow growth rate is significantly negative, suggesting cash flow issues. The operating cash flow to net income ratio is low, indicating weak cash flow relative to net income. The negative free cash flow to net income ratio further underscores cash flow challenges. Overall, the cash flow statement highlights liquidity concerns and inefficient cash management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.62B1.56B1.74B1.80B1.89B1.97B
Gross Profit357.71M334.06M380.83M396.41M427.44M491.62M
EBITDA-161.47M62.23M21.60M-33.02M162.91M167.02M
Net Income-261.16M-530.84M-75.04M-116.54M77.87M77.36M
Balance Sheet
Total Assets1.84B1.60B2.12B2.26B2.46B2.21B
Cash, Cash Equivalents and Short-Term Investments44.42M54.35M54.31M53.36M65.51M75.87M
Total Debt774.96M72.94M835.71M929.25M1.01B327.82M
Total Liabilities1.15B1.13B1.17B1.24B1.38B683.02M
Stockholders Equity696.71M475.00M942.91M1.02B1.08B1.52B
Cash Flow
Free Cash Flow36.41M-3.17M82.89M38.94M40.28M125.21M
Operating Cash Flow64.16M22.11M116.36M66.82M80.24M196.76M
Investing Cash Flow-1.03M3.62M-23.92M-19.64M-288.31M-2.36M
Financing Cash Flow-70.10M-43.89M-89.73M-63.06M212.79M-162.44M

Hain Celestial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.65
Price Trends
50DMA
1.73
Negative
100DMA
1.76
Negative
200DMA
3.23
Negative
Market Momentum
MACD
-0.05
Positive
RSI
46.22
Neutral
STOCH
30.22
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 1.65 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.73, and below the 200-day MA of 3.23, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 30.22 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
289.58M22.028.95%4.33%-6.33%
75
Outperform
437.79M94.4915.29%19.34%-12.64%
64
Neutral
406.85M38.6612.55%9.19%-23.91%
51
Neutral
66.55M-59.77-13.79%22.79%74.00%
47
Neutral
$148.98M-74.88%-10.17%-609.02%
39
Underperform
222.27M-1.3623.13%-5.17%56.19%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HAIN
Hain Celestial
1.65
-6.01
-78.46%
LWAY
Lifeway Foods
26.72
0.42
1.60%
NATR
Nature's Sunshine Products
16.42
3.10
23.27%
BYND
Beyond Meat
2.90
-3.85
-57.04%
MAMA
Mama's Creations
10.81
3.23
42.61%
LSF
Laird Superfood
6.24
1.34
27.35%
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: Sep 17, 2025