Herbalife Nutrition Ltd. (HLF) is a Packaged Foods company in the Consumer Defensive sector, currently trading at $16.67. It has a SharesGrow Score of 55/100, indicating a above average investment profile with 3 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of HLF = $103.37 (+520.1% from the current price, the stock appears undervalued). Analyst consensus target is HLF = $16 (-4% upside).
Valuation: HLF trades at a trailing Price-to-Earnings (P/E) of 6.7 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.36.
Financials: revenue is $5.0B, -1.1%/yr average growth. Net income is $228M, growing at +4.3%/yr. Net profit margin is 4.5% (thin). Gross margin is 75.6% (-1.8 pp trend).
Balance sheet: total debt is $2.3B with negative equity of -$515M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.13 (adequate). Debt-to-assets is 84%. Total assets: $2.8B.
Analyst outlook: 15 / 25 analysts rate HLF as buy (60%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 80/100 (Pass), Growth 30/100 (Fail), Past 100/100 (Pass), Health 25/100 (Fail), Moat 70/100 (Pass), Future 47/100 (Partial), Income 30/100 (Fail).
