📊 HELE Key Takeaways
Is HELE a Good Investment? Thesis Analysis
Helen of Troy is in severe financial distress with a catastrophic operating margin of -55.5% and $843.4M net loss, coupled with declining 4.9% YoY revenue. The company faces acute liquidity stress with only $27.1M cash reserves against $869M long-term debt and negative interest coverage of -13.8x, creating material solvency risk. While positive operating cash flow and 46% gross margin suggest underlying product viability, the mounting operating losses and weak cash position threaten financial stability.
Why Buy HELE? Key Strengths
- 46% gross margin demonstrates viable core products and competitive pricing power
- Positive operating cash flow of $59.8M and free cash flow of $28.8M provide near-term runway
- $2.3B asset base offers restructuring value and potential acquisition appeal
HELE Investment Risks to Consider
- Operating margin of -55.5% reflects severe structural profitability crisis beyond revenue challenges
- Minimal cash position ($27.1M) relative to $869M debt and inability to service debt from operations (-13.8x coverage)
- Declining revenue (-4.9% YoY) combined with deepening losses suggests market demand weakness and failed operational corrections
Key Metrics to Watch
- Operating margin trajectory and operating income path to profitability
- Operating cash flow sustainability given disconnect from operating income
- Quarterly revenue stabilization and debt refinancing/covenant status
HELE Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility.
HELE Profitability Ratios
HELE vs Default Sector
How HELEN OF TROY LTD compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HELE Overvalued or Undervalued?
Based on fundamental analysis, HELEN OF TROY LTD shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HELE Balance Sheet & Liquidity
HELE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HELEN OF TROY LTD's revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $5.95 reflects profitable operations.
HELE Growth Metrics (YoY)
HELE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $512.8M | $49.6M | $2.17 |
| Q2 2026 | $431.8M | $17.0M | $0.74 |
| Q1 2026 | $371.7M | $6.2M | $0.26 |
| Q3 2025 | $530.7M | $49.6M | $2.17 |
| Q2 2025 | $474.2M | $17.0M | $0.74 |
| Q1 2025 | $416.8M | $6.2M | $0.26 |
| Q3 2024 | $549.6M | $51.8M | $2.15 |
| Q2 2024 | $491.6M | $27.4M | $1.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HELE Capital Allocation
HELE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HELEN OF TROY LTD (CIK: 0000916789)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773154355.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773154323.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772760509.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772561568.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772561515.xml | View → |
❓ Frequently Asked Questions about HELE
What is the AI rating for HELE?
HELEN OF TROY LTD (HELE) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HELE's key strengths?
Claude: 46% gross margin demonstrates viable core products and competitive pricing power. Positive operating cash flow of $59.8M and free cash flow of $28.8M provide near-term runway.
What are the risks of investing in HELE?
Claude: Operating margin of -55.5% reflects severe structural profitability crisis beyond revenue challenges. Minimal cash position ($27.1M) relative to $869M debt and inability to service debt from operations (-13.8x coverage).
What is HELE's revenue and growth?
HELEN OF TROY LTD reported revenue of $1.3B.
Does HELE pay dividends?
HELEN OF TROY LTD does not currently pay dividends.
Where can I find HELE SEC filings?
Official SEC filings for HELEN OF TROY LTD (CIK: 0000916789) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HELE's EPS?
HELEN OF TROY LTD has a diluted EPS of $-36.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HELE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HELEN OF TROY LTD has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HELE stock overvalued or undervalued?
Valuation metrics for HELE: ROE of -99.0% (sector avg: 15%), net margin of -64.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HELE stock in 2026?
Our dual AI analysis gives HELEN OF TROY LTD a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HELE's free cash flow?
HELEN OF TROY LTD's operating cash flow is $59.8M, with capital expenditures of $31.0M. FCF margin is 2.2%.
How does HELE compare to other Default stocks?
Vs Default sector averages: Net margin -64.1% (avg: 12%), ROE -99.0% (avg: 15%), current ratio 1.81 (avg: 1.8).