Herbalife Ltd (HLF)
NYSE:HLF
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Herbalife
(NYSE:HLF)
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Rating:60Neutral
Price Target:
$13.00
▼(-23.62% Downside)
Action:Reiterated
Date:05/09/26
The score is supported by strong cash generation and a constructive earnings update (beat-and-reiterate guidance plus refinancing-driven interest savings), and by a low P/E valuation. These positives are tempered by a structurally weak balance sheet (negative equity) and currently bearish technical signals with the stock trading below key moving averages.
Positive Factors
Cash Generation
Sustained, sizable free cash flow provides durable flexibility to fund capex, acquisitions, debt paydown and working capital without relying on equity markets. Over the next 2–6 months, strong cash conversion supports deleveraging targets and cushions against regional sales variability.
Negative Factors
Negative Equity
A persistent equity deficit constrains financial flexibility and heightens creditor sensitivity to earnings shocks. Even with lower reported debt, negative equity signals legacy losses that can limit strategic moves, increase covenant scrutiny and amplify downside in an economic downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained, sizable free cash flow provides durable flexibility to fund capex, acquisitions, debt paydown and working capital without relying on equity markets. Over the next 2–6 months, strong cash conversion supports deleveraging targets and cushions against regional sales variability.
Read all positive factors
Herbalife (HLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)6.2
Beta (1Y)0.47
Revenue Growth3.69%
EPS Growth-16.34%
CountryUS
Employees8,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.33
Shares Outstanding103,669,420
10 Day Avg. Volume1,849,005
30 Day Avg. Volume1,303,247
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 Cap0.76
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.26
Enterprise Value/Ebitda1.69
Forecast
1Y Price Target
$21.00Price Target Upside23.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.63
Revenue Forecast (FY)$5.24B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized clear operational and financial progress—including net sales and adjusted EBITDA beating guidance, strong India performance, meaningful refinancing savings (~$45M annualized), improved cash generation ($114M operating cash flow), and strategic M&A and digital initiatives to accelerate personalized nutrition. Offsetting these positives were region-specific challenges: softness in EMEA and North America (weather and timing), a notable decline in China (volume -18%), modest gross margin pressure from mix and input cost dynamics, and an expected $20–25M FY EBITDA headwind from India GST mismatches. On balance, the company presented multiple durable positives that outweighed the localized and timing-related headwinds, while setting conservative guidance assumptions for FX and tax impacts.Positive Updates
Revenue Growth Above Guidance
First quarter net sales of $1.3 billion, up 7.8% year-over-year and up 5.4% on a constant currency basis, exceeding guidance and marking the third consecutive quarter of year-over-year net sales growth.
Negative Updates
EMEA Weakness
EMEA reported net sales up 1% year-over-year but constant currency net sales declined 6%, driven by an 11% decline in volume that outweighed favorable pricing and FX tailwinds.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
First quarter net sales of $1.3 billion, up 7.8% year-over-year and up 5.4% on a constant currency basis, exceeding guidance and marking the third consecutive quarter of year-over-year net sales growth.
Read all positive updates
Company Guidance
Herbalife reiterated a disciplined outlook anchored by a strong Q1 (net sales $1.3B, +7.8% YoY / +5.4% cc; adjusted EBITDA $176M; cash from operations $114M; adjusted diluted EPS $0.64), and guided Q2 net sales to +1.5%–5.5% reported (+1%–5% cc) with adjusted EBITDA $150M–$170M, and full‑year 2026 net sales to +1.5%–5.5% reported (+1%–5% cc) and adjusted EBITDA $675M–$705M; management noted a reduced FX tailwind (now ~50 bps vs. prior 100 bps) and specific headwinds including an ~ $10M QoQ EBITDA impact in Q2 ($5M China grant timing, $5M India GST mismatch) and an expected India GST-related drag of ~$20M–$25M (≈40–50 bps) on full‑year adjusted EBITDA. They reaffirmed capex of $50M–$80M (Q2 $15M–$25M), capitalized SaaS $35M–$55M, an anticipated adjusted effective tax rate of ~30%, and balance‑sheet targets following a $1.45B refinancing (including $800M 7.75% notes) that should yield ~ $45M of annual cash interest savings; leverage stood at 2.7x total (net leverage 2.1x) with a target to get net leverage below 2.0x by year‑end and reduce gross debt to ~ $1.4B by 2028.Herbalife Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.13B | 5.04B | 4.99B | 5.06B | 5.20B | 5.80B |
| Gross Profit | 3.90B | 3.81B | 3.89B | 3.87B | 4.03B | 4.56B |
| EBITDA | 593.30M | 562.70M | 509.10M | 482.20M | 679.50M | 821.50M |
| Net Income | 239.80M | 228.30M | 254.30M | 142.20M | 321.30M | 447.20M |
Balance Sheet | ||||||
| Total Assets | 2.88B | 2.79B | 2.73B | 2.81B | 2.73B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 451.20M | 353.10M | 415.30M | 575.20M | 508.00M | 601.50M |
| Total Debt | 164.40M | 2.34B | 2.47B | 2.77B | 2.92B | 3.01B |
| Total Liabilities | 3.31B | 3.30B | 3.53B | 3.87B | 4.00B | 4.21B |
| Stockholders Equity | -441.50M | -515.10M | -801.10M | -1.06B | -1.27B | -1.39B |
Cash Flow | ||||||
| Free Cash Flow | 373.90M | 252.90M | 163.40M | 222.50M | 196.10M | 308.90M |
| Operating Cash Flow | 446.90M | 333.30M | 285.40M | 357.50M | 352.50M | 460.30M |
| Investing Cash Flow | -101.10M | -108.70M | -84.60M | -134.80M | -156.20M | -156.40M |
| Financing Cash Flow | -221.30M | -295.50M | -335.30M | -148.30M | -264.70M | -728.60M |
Herbalife Technical Analysis
Negative
17.02
Price Trends
15.03
Negative
15.77
Negative
12.90
Negative
Market Momentum
-0.92
Positive
33.76
Neutral
14.99
Positive
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 17.02 is above the 20-day moving average (MA) of 14.59, above the 50-day MA of 15.03, and above the 200-day MA of 12.90, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $384.41M | 20.53 | 12.30% | ― | 7.26% | 104.70% | |
66 Neutral | $2.21B | 7.15 | 10.72% | ― | 0.22% | 46.14% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.38B | 225.07 | 6.24% | 3.53% | -2.04% | -23.39% | |
60 Neutral | $1.32B | 6.17 | -43.03% | ― | 3.69% | -16.34% | |
59 Neutral | $1.05B | -2.47 | -6.15% | ― | 0.34% | -182.07% | |
54 Neutral | $342.67M | 10.34 | 2.03% | ― | 5.67% | -73.96% |
* Consumer Defensive Sector Average
HLF
Herbalife
12.43
5.77
86.64%
CENT
Central Garden Pet
38.58
3.06
8.61%
JJSF
J & J Snack Foods
74.55
-33.30
-30.88%
SMPL
Simply Good Foods
11.86
-22.55
-65.53%
NATR
Nature's Sunshine Products
21.85
7.58
53.12%
USNA
USANA Health
18.74
-10.68
-36.30%
Herbalife Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingShareholder Meetings
Herbalife Shareholders Approve Directors and Executive Compensation
Positive
May 6, 2026
At its 2026 Annual General Meeting on April 30, 2026, Herbalife shareholders elected eleven directors, approved on an advisory basis the compensation of named executive officers, and ratified the appointment of PricewaterhouseCoopers as independen...
Business Operations and StrategyPrivate Placements and Financing
Herbalife Completes Major Refinancing to Extend Debt Maturities
Positive
May 1, 2026
On April 29, 2026, Herbalife closed a $1.45 billion senior secured refinancing, including an $800 million private offering of 7.750% senior secured notes due 2033 and amendments to its 2024 senior secured credit facility, which was replaced with a...
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 ...
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.