Herbalife (HLF) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.35
• 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: 103,310,720
• 10 Day Avg. Volume: 2,521,739
• 30 Day Avg. Volume: 2,384,607
• 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: 1.87
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 0.73
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $14.33
• Price Target Upside: 0.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $4.99B

• Rating: 71 Outperform
• Price Target: $15.00 ▲(4.90% Upside)

Herbalife's overall stock score reflects strong technical momentum and positive earnings call highlights, including sales growth and strategic initiatives. However, financial performance concerns, particularly high leverage and liquidity issues, weigh on the score. The low P/E ratio supports a favorable valuation.

Positive Factors

Net Sales Growth

The return to net sales growth in key markets indicates a recovery in demand and effective sales strategies, supporting long-term revenue stability.

Debt Reduction

Reducing debt levels enhances financial stability and flexibility, allowing for reinvestment in growth initiatives and reducing interest expenses.

Product Innovation

Innovative products and technology adoption can drive future growth by meeting evolving consumer demands and enhancing distributor capabilities.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting the company's ability to invest in growth and handle economic downturns.

Decline in China

Sales decline in China, a significant market, could hinder overall growth and reflects challenges in adapting to local market conditions.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests volatility in market demand or execution, potentially impacting long-term financial planning and investor confidence.

Herbalife Business Overview & Revenue Model

Company Description

Herbalife Nutrition Ltd. is a global nutrition company that offers a wide range of dietary supplements, weight management products, and personal care items. Founded in 1980, the company operates in multiple sectors, including health and wellness, fitness, and skincare. Herbalife's core products include protein shakes, meal replacement bars, vitamins, and herbal tea concentrates, which are marketed through a network of independent distributors in over 90 countries.

How the Company Makes Money

Herbalife generates revenue primarily through the sale of its nutrition products to independent distributors, who then sell these products directly to consumers. This multi-level marketing model allows distributors to earn commissions based on their sales and the sales of their recruited team members. Key revenue streams include product sales, membership fees for distributors, and incentives for achieving sales milestones. Additionally, Herbalife benefits from partnerships with various fitness and health organizations, enhancing its brand visibility and credibility. Factors contributing to its earnings include a strong global presence, a loyal customer base, and ongoing product innovation aimed at meeting consumer demands in the health and wellness sector.

Herbalife Financial Statement Overview

Summary

Herbalife's financial performance is mixed. Strong gross profit margins are overshadowed by low net profit margins and inconsistent revenue growth. The balance sheet shows high leverage and financial risk, while cash flow metrics indicate some positive trends but also liquidity concerns.

Income Statement

Herbalife's income statement shows a mixed performance. The TTM gross profit margin is strong at 78.12%, indicating efficient cost management. However, the net profit margin is relatively low at 6.59%, suggesting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a notable decline in recent years, but a slight recovery in the TTM period. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but room for improvement.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity leading to a concerning debt-to-equity ratio. The return on equity is negative, indicating losses relative to shareholder investment. The equity ratio is also negative, highlighting potential financial instability and risk.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth in the TTM period, recovering from previous declines. The operating cash flow to net income ratio is moderate, suggesting reasonable cash generation from operations. However, the free cash flow to net income ratio indicates that a significant portion of earnings is not translating into free cash flow, which could impact liquidity.

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	3.83B	3.89B	3.87B	4.03B	4.56B	4.39B
EBITDA	618.00M	509.10M	482.20M	679.50M	821.50M	749.70M
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	309.20M	415.30M	575.20M	508.00M	601.50M	1.05B
Total Debt	2.21B	2.47B	2.77B	2.92B	3.01B	2.67B
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: 14.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 14.3 is above the 20-day moving average (MA) of 12.65, above the 50-day MA of 10.25, and above the 200-day MA of 8.90, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 70.38 is Negative, neither overbought nor oversold. The STOCH value of 82.61 is Negative, 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	80 Outperform	$391.55M	27.57	9.52%	―	6.62%	-7.85%
CENT	73 Outperform	$1.94B	13.22	10.38%	―	-2.23%	57.16%
HLF	71 Outperform	$1.49B	4.57	―	―	-0.78%	265.56%
JJSF	69 Neutral	$1.82B	28.09	6.82%	3.34%	0.54%	-24.42%
SMPL	63 Neutral	$1.91B	19.31	5.86%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$371.65M	23.01	3.20%	―	5.88%	-68.62%

Herbalife Corporate Events

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.