Herbalife (HLF) AI Stock Analysis

• Market Cap: $822.78M
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.49
• Revenue Growth: -0.78%
• EPS Growth: 265.56%
• Country: US
• Employees: 8,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.50
• Shares Outstanding: 103,105,680
• 10 Day Avg. Volume: 1,351,158
• 30 Day Avg. Volume: 1,248,577
• PEG Ratio: 0.03
• Price to Book (P/B): -0.84
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 4.12
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $10.50
• Price Target Upside: 14.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $10.00 ▲(8.70% Upside)

Herbalife's overall stock score reflects a combination of undervaluation and positive technical momentum, tempered by financial leverage risks and regional performance challenges. The earnings call provided optimism with strategic growth initiatives, but the financial performance remains a significant concern.

Positive Factors

Operational Efficiency

Exceeding EBITDA guidance indicates strong operational efficiency, which can lead to improved profitability and competitive positioning.

Product Innovation

Launching new products enhances market presence and can drive long-term revenue growth by meeting evolving consumer demands.

Investment in R&D

Investing in R&D facilities supports innovation and quality assurance, crucial for maintaining competitive advantage and product development.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Declining Sales

Declining sales indicate challenges in market demand or competition, which can impact long-term revenue and profitability.

Currency Headwinds

Currency headwinds can erode international revenue and profit margins, affecting global financial performance and strategic planning.

Herbalife Business Overview & Revenue Model

Company Description

Herbalife Nutrition Ltd. is a global nutrition company that sells dietary supplements and personal care products. Founded in 1980, Herbalife operates in the health and wellness sector, focusing on weight management, nutrition, and personal care. The company offers a range of products including protein shakes, vitamins, herbal teas, and skincare items, all aimed at promoting a healthy lifestyle. Herbalife primarily markets its products through a multi-level marketing (MLM) model, utilizing a network of independent distributors to reach consumers worldwide.

How the Company Makes Money

Herbalife generates revenue primarily through the sale of its products, which are distributed by independent distributors who earn commissions based on their sales and the sales of their recruits. This MLM structure creates multiple revenue streams: direct sales to consumers, commissions from distributor sales, and bonuses for distributors based on their sales performance and team sales. Additionally, Herbalife benefits from retail sales through its branded stores and online platforms. The company's earnings are also influenced by promotional partnerships and sponsorships within the fitness and wellness industries, reinforcing its brand presence and driving product demand.

Herbalife Financial Statement Overview

Summary

Herbalife's financial performance is challenged by declining revenues and high financial leverage. Despite strong profitability margins, the negative equity position and high debt levels pose significant risks. Cash flow generation shows some positive signs, but the company needs to address its leverage and revenue growth to improve financial stability.

Income Statement

Herbalife's income statement shows a declining revenue trend with a negative growth rate of -44.4% TTM. Despite this, the company maintains a strong gross profit margin of 78.1% and a net profit margin of 6.6% TTM, indicating efficient cost management. However, the declining EBIT and EBITDA margins suggest pressure on operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative equity position, resulting in a high debt-to-equity ratio of -3.55 TTM. The return on equity is also negative, reflecting challenges in generating returns for shareholders. The equity ratio is negative due to the negative stockholders' equity, indicating potential financial instability.

Cash Flow

Herbalife's cash flow statement shows a modest free cash flow growth of 4.3% TTM, indicating some improvement in cash generation. The operating cash flow to net income ratio of 0.24 TTM suggests moderate cash conversion efficiency. However, the free cash flow to net income ratio of 0.65 TTM highlights a reliance on cash flow for sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.99B	5.06B	5.20B	5.80B	5.54B
Gross Profit	3.87B	3.89B	3.87B	4.03B	4.56B	4.39B
EBITDA	585.30M	509.10M	482.20M	672.70M	854.60M	740.90M
Net Income	320.80M	254.30M	142.20M	321.30M	447.20M	372.60M
Balance Sheet
Total Assets	2.70B	2.73B	2.81B	2.73B	2.82B	3.08B
Cash, Cash Equivalents and Short-Term Investments	305.50M	415.30M	575.20M	508.00M	601.50M	1.05B
Total Debt	177.70M	2.47B	2.77B	2.88B	2.96B	2.64B
Total Liabilities	3.30B	3.53B	3.87B	4.00B	4.21B	3.93B
Stockholders Equity	-612.00M	-801.10M	-1.06B	-1.27B	-1.39B	-856.10M
Cash Flow
Free Cash Flow	217.00M	163.40M	222.50M	196.10M	308.90M	516.60M
Operating Cash Flow	304.60M	285.40M	357.50M	352.50M	460.30M	628.60M
Investing Cash Flow	-115.60M	-84.60M	-134.80M	-156.20M	-156.40M	-123.20M
Financing Cash Flow	-271.80M	-335.30M	-148.30M	-264.70M	-728.60M	-320.90M

Herbalife Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.2 is above the 20-day moving average (MA) of 8.42, above the 50-day MA of 8.89, and above the 200-day MA of 8.18, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLF.

Herbalife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	69 Neutral	$242.49M	18.95	9.15%	―	4.33%	-6.33%
CENT	67 Neutral	$1.78B	14.29	8.70%	―	-4.90%	0.29%
JJSF	67 Neutral	$1.64B	19.68	8.79%	3.75%	0.50%	-4.46%
HLF	65 Neutral	$822.78M	2.59	―	―	-0.78%	265.56%
SMPL	63 Neutral	$2.02B	20.22	5.86%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$375.49M	23.09	3.20%	―	5.88%	-68.62%

Herbalife Corporate Events

Herbalife Ltd Reports Sales Growth Amidst Mixed Regional Performance

Herbalife Ltd’s recent earnings call conveyed a generally positive sentiment, highlighting a return to net sales growth, robust financial performance, and successful product innovations. Despite these achievements, the company faces challenges in the Chinese market and exhibits mixed regional performances. Nonetheless, Herbalife’s strategic initiatives and engagement efforts are gaining positive traction.

Herbalife Reports Q3 Growth and Exceeds Guidance

Herbalife Ltd. is a global health and wellness company that offers nutrition products and a business opportunity for independent distributors across more than 90 markets worldwide. The company focuses on providing science-backed products and fostering a supportive community to promote healthier lifestyles.

Herbalife Reports Q3 2025 Sales Growth and New Launches

Herbalife reported a 2.7% increase in net sales for the third quarter of 2025, reaching $1.3 billion, with North America showing growth for the first time since 2021. The company exceeded its adjusted EBITDA guidance and reduced its leverage ratio, reflecting strong financial performance and strategic distributor engagement. Recent developments include the expansion of the Pro2col app and the launch of a new skincare line, HL/Skin, in select European markets. These initiatives highlight Herbalife’s focus on product innovation and digital transformation, aiming to support distributor growth and enhance shareholder value.

The most recent analyst rating on (HLF) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Herbalife stock, see the HLF Stock Forecast page.

Herbalife Ltd’s Earnings Call: Innovation Amid Challenges

Herbalife Ltd’s recent earnings call painted a mixed picture, with a blend of optimism and challenges. The company celebrated significant product innovation and positive momentum in North America, driven by strong distributor engagement and financial performance that exceeded expectations. However, it also faced hurdles, including a decline in net sales and regional difficulties in EMEA and China.

Herbalife Ltd. Reports Strong Q2 Earnings and Raises Guidance

Herbalife Ltd., a global health and wellness company, specializes in nutrition products and offers a business opportunity for independent distributors across more than 90 markets.