Herbalife Ltd (HLF)
NYSE:HLF
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Herbalife
(NYSE:HLF)
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Rating:61Neutral
Price Target:
$18.00
▲(5.76% Upside)
Action:ReiteratedDate:04/17/26
The score is held back primarily by balance-sheet risk (persistent negative equity) and uneven operating profitability, even as cash generation remains solid. Offsetting these concerns are improving growth/margin commentary and debt-reduction progress from the earnings call and recent refinancing events, plus supportive price trend and a low P/E valuation.
Positive Factors
Consistent Cash Generation
Herbalife has delivered consistently positive operating cash flow and improving free cash flow, including a notable uplift in 2025. Durable cash generation funds capex, SaaS implementation and debt paydown, reducing reliance on external financing and enabling strategic investments over the medium term.
Negative Factors
Persistent Negative Equity
Herbalife reports negative stockholders' equity across all provided years, a structural capital shortfall that constrains financial flexibility. Even with recent debt paydowns, persistent negative equity raises creditor sensitivity and limits the company's ability to absorb shocks or pursue aggressive M&A without refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Herbalife has delivered consistently positive operating cash flow and improving free cash flow, including a notable uplift in 2025. Durable cash generation funds capex, SaaS implementation and debt paydown, reducing reliance on external financing and enabling strategic investments over the medium term.
Read all positive factors
Herbalife (HLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)1.31M
Price to Earnings (P/E)5.8
Beta (1Y)0.57
Revenue Growth0.89%
EPS Growth-11.91%
CountryUS
Employees8,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.45
Shares Outstanding103,409,870
10 Day Avg. Volume1,166,786
30 Day Avg. Volume1,305,522
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)-2.57
Price to Sales (P/S)0.26
P/FCF Ratio5.24
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit0.94
Enterprise Value/Ebitda6.22
Forecast
1Y Price Target
$17.50Price Target Upside2.82% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.53
Revenue Forecast (FY)$5.21B
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 nu...
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 di...
Herbalife Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call struck a constructive tone: Herbalife showed a clear return to growth with Q4 net sales up 6.3% and full-year adjusted EBITDA/margin expansion, meaningful cash generation (Q4 operating cash flow +41% YoY; full year +17% YoY) and continued debt reduction (leverage reduced to 2.8x). Operational momentum in India, Latin America and product innovation (MultiBurn, HL/Skin, Life I/O Baseline) and the Pro2col digital initiative (including Cristiano Ronaldo partnership) provide upside. Offsetting items include regional weakness in China (volumes −11% YoY), margin pressure from FX, GST-related transition costs and bonus accrual timing, plus modest near-term guidance reflecting cautious assumptions and planned investments (SaaS, events). Overall the positives—growth resumption, margin/cashflow improvement, balance sheet repair and strategic digital/product initiatives—outweigh the challenges noted.Positive Updates
Quarterly Net Sales Growth
Q4 net sales of $1.3B, up 6.3% year-over-year and +5.5% on a constant currency basis; second consecutive quarter of YoY net sales growth and strongest YoY increase since Q2 2021.
Negative Updates
China Volumes and Sales Weakness
China net sales down 4% YoY (−6% in local currency) in Q4; volume decline approximately 11% YoY—management expects China to be a 2027 recovery story, not 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Net Sales Growth
Q4 net sales of $1.3B, up 6.3% year-over-year and +5.5% on a constant currency basis; second consecutive quarter of YoY net sales growth and strongest YoY increase since Q2 2021.
Read all positive updates
Company Guidance
Herbalife guided Q1 2026 net sales growth of 3%–7% (0.5%–4.5% constant currency), noting an approximately $31M FX benefit and ~250 bps currency tailwind to the quarter; Q1 adjusted EBITDA is expected at $155M–$175M and Q1 CapEx $10M–$20M. For full-year 2026, reported net sales growth is guided to 1%–6% (flat to +5% constant currency) with ~100 bps FX tailwind, adjusted EBITDA $670M–$710M (or $665M–$705M C.C.), CapEx $50M–$80M, capitalized SaaS $40M–$60M (incremental), an adjusted tax rate of ~30%, tariffs expected immaterial, and a corporate objective to reduce gross debt to $1.4B by end-2028.Herbalife Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
66
Positive
| 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
Positive
17.02
Price Trends
16.26
Positive
15.36
Positive
12.26
Positive
Market Momentum
0.16
Negative
61.41
Neutral
82.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLF, the sentiment is Positive. The current price of 17.02 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 16.26, and above the 200-day MA of 12.26, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLF.
Herbalife Risk Analysis
Herbalife disclosed 35 risk factors in its most recent earnings report. Herbalife 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
Herbalife Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.15B | 73.36 | 9.90% | ― | -4.11% | 33.62% | |
64 Neutral | $1.66B | 491.43 | 6.48% | 3.53% | -1.55% | -27.49% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.65B | 5.80 | -36.19% | ― | 0.89% | -11.91% | |
61 Neutral | $473.23M | 19.90 | 12.18% | ― | 5.67% | 162.31% | |
59 Neutral | $1.23B | -2.47 | -6.15% | ― | 0.34% | -182.07% | |
53 Neutral | $345.51M | 33.56 | 2.03% | ― | 8.28% | -74.46% |
* Consumer Defensive Sector Average
HLF
Herbalife
15.98
9.35
141.03%
CENT
Central Garden Pet
37.47
3.56
10.50%
JJSF
J & J Snack Foods
87.06
-35.50
-28.97%
SMPL
Simply Good Foods
13.59
-22.37
-62.21%
NATR
Nature's Sunshine Products
27.03
14.75
120.11%
USNA
USANA Health
18.72
-9.32
-33.24%
Herbalife Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Herbalife Prices $800 Million Senior Secured Notes Offering
Positive
Apr 16, 2026
On April 15, 2026, Herbalife announced that subsidiaries HLF Financing SaRL, LLC and Herbalife International, Inc. had priced an $800 million offering of senior secured notes due 2033, carrying a fixed annual coupon of 7.750% and sold at par to in...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Herbalife Posts Strong Q1 Sales and Refinancing Update
Positive
Apr 14, 2026
On April 14, 2026, Herbalife reported preliminary first-quarter 2026 results showing net sales growth of 7.5% to 8.0% year-over-year, above the high end of prior guidance, with constant-currency growth of 5.0% to 5.5% and adjusted EBITDA expected ...
Business Operations and StrategyFinancial Disclosures
Herbalife Gains Cristiano Ronaldo Backing for Pro2col Platform
Positive
Feb 18, 2026
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 ...
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.