Herbalife Nutrition Ltd.
$11.39
-4.3%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 nutrition; energy, sports, and fitness; and outer nutrition. It offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. The company also provides literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. It offers its products through independent service providers and sales representatives, as well as through company-operated retail platforms. The company was formerly known as Herbalife Ltd. and changed its name to Herbalife Nutrition Ltd. in April 2018. Herbalife Nutrition Ltd. was founded in 1980 and is headquartered in Los Angeles, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 5.1).
Valuation inputs: P/E 5.1, earnings yield +19.5%, momentum -4.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -44.3%, ROIC +20.0%).
Profitability stack: net margin +4.5%, ROE -44.3%, ROIC +20.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +118.3%, momentum -4.3%, net margin +4.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Herbalife Nutrition Ltd. Market vs Earnings Trajectory
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Herbalife Nutrition Ltd. Fair Value Envelope
Herbalife Nutrition Ltd. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Herbalife Nutrition Ltd. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Herbalife Nutrition Ltd. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Herbalife Nutrition Ltd. Street Expectations Map
Wall Street analysts project that HLF stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 18.50, with estimates ranging from a low of 17.00 to a high of 20.00.
The consensus 1-year price target stands at 18.50, with estimates ranging from a low of 17.00 to a high of 20.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Herbalife Nutrition Ltd. Insider Positioning
During the last 12 months, insiders have purchased $192K and sold $3.81M worth of HLF shares, resulting in $3.62M of net selling activity.
3 Months
0
0.00
191.3K
2.55M
-2.6M
-$2.55M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
18.2K
167.94K
3.5K
27.95K
+140K
+$140K
9-12 Months
3.1K
23.57K
125.8K
1.23M
-1.2M
-$1.21M
Top Buyers
Cloud Lynda
Director
$152K
Mendoza Juan Miguel
Director
$24K
L'Helias Sophie
Director
$15K
Top Sellers
Lamberti Frank
Officer: Chief Commercial Officer
$1.93M
Johnson Michael
Director
$1.23M
Hicks Troy
Officer: Chief Operating Officer
$620K
Gratziani Stephan Paulo
Officer: Chief Executive Officer
$28K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $3.62M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
HLF has not reported any dividend yield values in the available annual periods.
hlf Dividend History
Learning Layer
Related Guides
Build conviction on HLF by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.