Herbalife Ltd (HLF)
NYSE:HLF
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Herbalife
(NYSE:HLF)
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Rating:63Neutral
Price Target:
$15.00
▲(7.99% Upside)
Action:ReiteratedDate: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
Consistent cash generation and free cash flow
Herbalife's multi-year positive operating cash flow and recurring free cash flow create durable financial flexibility. Reliable cash conversion funds capex, SaaS rollouts and marketing, supports continued debt repayment and cushions the business against regional volatility without needing frequent external financing.
Negative Factors
Persistent negative shareholders' equity
Negative equity is a structural weakness that constrains financial flexibility and heightens vulnerability to shocks. Even with recent debt paydown, persistent negative net worth can limit access to capital, increase covenant/default risk in stress scenarios, and restrict strategic options like large M&A or buybacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation and free cash flow
Herbalife's multi-year positive operating cash flow and recurring free cash flow create durable financial flexibility. Reliable cash conversion funds capex, SaaS rollouts and marketing, supports continued debt repayment and cushions the business against regional volatility without needing frequent external financing.
Read all positive factors
Herbalife (HLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)5.8
Beta (1Y)0.45
Revenue Growth-0.78%
EPS Growth265.56%
CountryUS
Employees8,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.45
Shares Outstanding103,365,560
10 Day Avg. Volume1,365,092
30 Day Avg. Volume1,783,682
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 Cap2.38
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit0.89
Enterprise Value/Ebitda5.85
Forecast
1Y Price Target
$17.50Price Target Upside25.99% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.55
Revenue Forecast (FY)$5.23B
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
Negative
13.89
Price Trends
16.53
Negative
14.72
Negative
11.90
Positive
Market Momentum
-0.68
Positive
34.27
Neutral
26.88
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 13.89 is below the 20-day moving average (MA) of 15.09, below the 50-day MA of 16.53, and above the 200-day MA of 11.90, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 34.27 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.01B | 73.36 | 9.90% | ― | -2.23% | 57.16% | |
64 Neutral | $1.51B | 491.43 | 6.48% | 3.53% | 0.54% | -24.42% | |
63 Neutral | $1.44B | 5.80 | -36.19% | ― | -0.78% | 265.56% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.31B | 19.23 | 5.04% | ― | 8.98% | -26.29% | |
61 Neutral | $424.56M | 22.99 | 12.18% | ― | 6.62% | -7.85% | |
53 Neutral | $311.92M | 33.56 | 2.03% | ― | 5.88% | -68.62% |
* Consumer Defensive Sector Average
HLF
Herbalife
13.89
5.62
67.96%
CENT
Central Garden Pet
35.81
0.58
1.65%
JJSF
J & J Snack Foods
79.22
-50.54
-38.95%
SMPL
Simply Good Foods
14.16
-19.69
-58.17%
NATR
Nature's Sunshine Products
24.25
12.47
105.86%
USNA
USANA Health
16.90
-8.58
-33.67%
Herbalife Corporate Events
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.