Herbalife (HLF) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.44
• Revenue Growth: -0.78%
• EPS Growth: 265.56%
• Country: US
• Employees: 8,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.45
• Shares Outstanding: 103,365,560
• 10 Day Avg. Volume: 1,531,712
• 30 Day Avg. Volume: 1,771,777
• PEG Ratio: -0.47
• Price to Book (P/B): -2.57
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 5.24
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 5.99
• 1Y Price Target: $17.00
• Price Target Upside: 15.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.62
• Revenue Forecast (FY): $5.15B

• Rating: 63 Neutral
• Price Target: $15.50 ▲(5.37% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by mixed fundamentals: strong and consistent cash generation is offset by deteriorating operating profitability and a structurally weak balance sheet (negative equity). Technicals are moderately supportive with price above key long-term averages, and valuation looks inexpensive on a low P/E. The latest earnings call was broadly positive (return to growth, margin/cash-flow improvement, leverage reduction), but near-term risks remain from China weakness, FX and investment-related margin pressure.

Positive Factors

Cash generation

Consistently positive operating and free cash flow provide durable internal funding for operations, debt paydown and strategic investments. Reliable cash generation reduces reliance on external financing, supports capitalized SaaS and product programs, and underpins long-term financial resilience.

Leverage reduction

Meaningful debt paydown and lower leverage materially reduce refinancing and interest-rate risk, improving financial flexibility. Lower gross debt supports continued investment in digital initiatives and product launches while easing covenant and liquidity pressure over the medium term.

Product & digital platform strategy

Building a personalized digital platform and securing high-profile endorsement represent structural shifts toward higher-margin, data-driven offerings. Pro2col can improve distributor engagement, retention and recurring consumption, creating a differentiated channel and longer-term revenue diversification.

Negative Factors

Negative equity

Persistent negative shareholders' equity constrains financial flexibility and raises structural solvency concerns even after recent debt reduction. Negative equity can limit strategic options, heighten creditor scrutiny in stress, and makes the company more sensitive to shocks or weaker profits over time.

Operating profitability deterioration

An EBIT loss despite healthy gross margins signals rising operating costs, investment spend and mix/FX pressures that compress operating leverage. Sustained volatility or erosion in operating profit risks undermining margin durability and limits the pace at which cash flow can rebuild equity.

China volume weakness

Material weakness in China reduces near-term growth runway in a key region and increases geographic concentration risk. A multi-year China recovery timeline delays revenue diversification and can amplify volatility in consolidated results amid FX and local regulatory shifts.

Herbalife Business Overview & Revenue Model

Company Description

Herbalife Nutrition Ltd. offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and rest of Asia Pacific. The company provides products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition. It offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. The company also provides literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. It offers its products through independent service providers and sales representatives, as well as through company-operated retail platforms. The company was formerly known as Herbalife Ltd. and changed its name to Herbalife Nutrition Ltd. in April 2018. Herbalife Nutrition Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

How the Company Makes Money

Herbalife primarily makes money by selling nutrition, supplement, and personal care products through a direct selling model. Revenue is recognized largely from product sales to its distributor/member network (i.e., the company sells products to distributors and members, who may then consume them personally or resell them to end customers). Key revenue streams include: (1) Product sales across major categories such as Weight Management (meal replacements and shakes), Nutrition (dietary supplements), and Energy/Sports/Fitness products; the exact category mix varies by period and region. (2) Price tiers/discount structures tied to distributor or member status and purchasing volume—participants may earn discounts on products and, for eligible distributors, compensation tied to sales activity under the company’s marketing plan; these mechanics can drive recurring purchasing and ordering patterns. (3) Geography: the company generates sales across multiple regions globally, so earnings are influenced by regional demand, currency movements, local regulations, and market-specific distributor activity. Significant factors affecting earnings include the size and productivity of the distributor network, customer retention and reorder rates, product mix, promotional activity, and compliance with direct selling regulations. Specific material partnerships contributing to earnings: null.

Herbalife Financial Statement Overview

Summary

Cash generation is consistently positive (operating cash flow and free cash flow positive across years), but operating profitability has deteriorated and turned into an EBIT loss in 2025. The balance sheet remains a major constraint due to persistent negative equity, despite a notable debt reduction shown in 2025.

Income Statement

Revenue has been roughly flat to modestly down over 2021–2024, with a sharp rebound shown in 2025 (annual report data). Profitability has weakened materially versus 2020–2022: net margin fell from ~7.7% (2021) / ~6.2% (2022) to ~2.8% (2023) and ~5.1% (2024), and 2025 shows a negative operating profit (EBIT) despite a still-healthy gross margin (~77–79%). Strengths are consistently strong gross profitability and generally positive net income; the key weakness is the volatility/erosion in operating profitability culminating in an operating loss in 2025.

Balance Sheet

The balance sheet is the primary concern: stockholders’ equity is negative in every year provided (ranging from about -$0.5B to -$1.4B), which meaningfully reduces financial flexibility. Total debt was very high in 2020–2024 (roughly $2.5B–$3.0B) relative to the asset base (~$2.7B–$3.1B), although 2025 shows a large step-down in debt to ~$0.18B. Despite that improvement, negative equity and negative return on equity across all years signal an elevated leverage/structure risk profile.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow is consistently positive ($285M–$629M) and free cash flow is also consistently positive ($163M–$517M), with a notable improvement in 2025 to ~$253M and strong free-cash-flow growth that year. Free cash flow has generally been a meaningful portion of net income (~0.56–0.82). The main weakness is volatility in free cash flow (several down years) and operating cash flow that is not consistently strong relative to reported earnings in the provided coverage figures.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.04B	4.99B	5.06B	5.20B	5.80B
Gross Profit	3.81B	3.89B	3.87B	4.03B	4.56B
EBITDA	562.70M	509.10M	482.20M	679.50M	821.50M
Net Income	228.30M	254.30M	142.20M	321.30M	447.20M
Balance Sheet
Total Assets	2.79B	2.73B	2.81B	2.73B	2.82B
Cash, Cash Equivalents and Short-Term Investments	353.10M	415.30M	575.20M	508.00M	601.50M
Total Debt	2.34B	2.47B	2.77B	2.92B	3.01B
Total Liabilities	3.30B	3.53B	3.87B	4.00B	4.21B
Stockholders Equity	-515.10M	-801.10M	-1.06B	-1.27B	-1.39B
Cash Flow
Free Cash Flow	252.90M	163.40M	222.50M	196.10M	308.90M
Operating Cash Flow	333.30M	285.40M	357.50M	352.50M	460.30M
Investing Cash Flow	-108.70M	-84.60M	-134.80M	-156.20M	-156.40M
Financing Cash Flow	-295.50M	-335.30M	-148.30M	-264.70M	-728.60M

Herbalife Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLF, the sentiment is Negative. The current price of 14.71 is below the 20-day moving average (MA) of 16.91, below the 50-day MA of 16.79, and above the 200-day MA of 11.60, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 20.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLF.

Herbalife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CENT	65 Neutral	$1.99B	73.36	9.90%	―	-2.23%	57.16%
JJSF	64 Neutral	$1.42B	491.43	6.48%	3.53%	0.54%	-24.42%
HLF	63 Neutral	$1.52B	5.80	-36.19%	―	-0.78%	265.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SMPL	62 Neutral	$1.31B	19.23	5.04%	―	8.98%	-26.29%
NATR	61 Neutral	$415.46M	19.90	12.18%	―	6.62%	-7.85%
USNA	53 Neutral	$312.11M	33.56	2.03%	―	5.88%	-68.62%

Herbalife Corporate Events

Herbalife Gains Cristiano Ronaldo Backing for Pro2col Platform

Herbalife reported that for the fourth quarter of 2025, net sales rose 6.3% year over year to $1.3 billion, with net income of $85.4 million and adjusted EBITDA of $156.1 million, all above guidance. For full-year 2025, net sales edged up 0.9% to $5.0 billion despite foreign-exchange headwinds, while adjusted EBITDA climbed to $657.6 million and leverage was kept at 2.8 times, supported by strong cash generation.

Operationally, the company highlighted distributor momentum in North America and Latin America, as well as progress in its Pro2col personalized wellness platform, including the December 2025 release of Pro2col Beta 2.0 in the U.S., Canada, and Puerto Rico. In February 2026, Cristiano Ronaldo invested $7.5 million for a 10% stake in Pro2col Software and agreed to provide sponsorship rights, signaling strategic endorsement of Herbalife’s push into technology-driven, personalized nutrition and potentially enhancing the platform’s global visibility and appeal to consumers and distributors.

The most recent analyst rating on (HLF) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Herbalife stock, see the HLF Stock Forecast page.