📊 HLF Key Takeaways
Is Herbalife Ltd.. (HLF) a Good Investment?
Herbalife exhibits a fundamentally distressed capital structure with negative stockholders' equity of -$441.5M, liabilities exceeding assets by $400M, and $2.0B in long-term debt against only $61.9M in annual net income. Revenue growth is anemic at 0.9% YoY with net income essentially flat, while quick ratio of 0.74x signals liquidity constraints. Though operating cash flow remains positive, the company is overleveraged and highly vulnerable to operational disruptions.
Herbalife generates steady gross profit and positive free cash flow, with operating profitability intact despite flat revenue. However, the balance sheet is strained with negative equity, high leverage, weak liquidity, and thin interest coverage, leaving little cushion against shocks. With muted growth and EPS pressure, risk outweighs fundamentals until leverage and liquidity improve.
Why Buy Herbalife Ltd.. Stock? HLF Key Strengths
- Strong gross margins of 77.9% indicate pricing power and operational efficiency
- Positive operating cash flow of $113.8M and free cash flow of $102.9M provide debt service capability
- Quality of earnings evidenced by operating cash flow exceeding net income by 84%
- High gross margin (~78%) supports profitability
- Consistent positive free cash flow (~5% FCF margin)
- Solid operating income and ROA (8.2%)
HLF Stock Risks: Herbalife Ltd.. Investment Risks
- Negative stockholders' equity of -$441.5M indicates balance sheet insolvency and eliminated shareholder value
- Debt-to-asset ratio critically unfavorable with $2.0B long-term debt versus $2.9B total assets; interest coverage of only 3.0x leaves minimal cushion
- Revenue and earnings growth essentially flat (0.9% and 0.2% YoY respectively) while EPS declined 12% YoY, indicating stagnation with share dilution
- Quick ratio of 0.74x and current ratio of 1.23x signal near-term liquidity stress and limited financial flexibility
- Negative equity and heavy leverage heighten financial risk
- Low interest coverage (2.2x) and weak quick ratio (0.62x)
- Flat revenue (+0.9% YoY) and declining EPS (-12% YoY)
Key Metrics to Watch
- Operating cash flow trajectory relative to debt service obligations
- Debt covenant compliance and covenant amendment negotiations
- Revenue growth acceleration or further deceleration; any negative net income would breach equity solvency
- Interest Coverage
- Free Cash Flow Margin
Herbalife Ltd.. (HLF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Herbalife Ltd.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HLF Profit Margin, ROE & Profitability Analysis
HLF vs Market Sector: How Herbalife Ltd.. Compares
How Herbalife Ltd.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Herbalife Ltd.. Stock Overvalued? HLF Valuation Analysis 2026
Based on fundamental analysis, Herbalife Ltd.. has mixed fundamental signals relative to the Market 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.
Herbalife Ltd.. Balance Sheet: HLF Debt, Cash & Liquidity
HLF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Herbalife Ltd..'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $1.42 reflects profitable operations.
HLF Revenue Growth, EPS Growth & YoY Performance
HLF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $50.4M | $0.49 |
| Q3 2025 | $1.2B | $43.2M | $0.42 |
| Q2 2025 | $1.3B | $4.7M | $0.05 |
| Q1 2025 | $1.2B | $24.3M | $0.24 |
| Q3 2024 | $1.2B | $42.8M | $0.43 |
| Q2 2024 | $1.3B | $4.7M | $0.05 |
| Q1 2024 | $1.3B | $24.3M | $0.24 |
| Q3 2023 | $1.3B | $42.8M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Herbalife Ltd.. Dividends, Buybacks & Capital Allocation
HLF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Herbalife Ltd.. (CIK: 0001180262)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HLF
What is the AI rating for HLF?
Herbalife Ltd.. (HLF) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLF's key strengths?
Claude: Strong gross margins of 77.9% indicate pricing power and operational efficiency. Positive operating cash flow of $113.8M and free cash flow of $102.9M provide debt service capability. ChatGPT: High gross margin (~78%) supports profitability. Consistent positive free cash flow (~5% FCF margin).
What are the risks of investing in HLF?
Claude: Negative stockholders' equity of -$441.5M indicates balance sheet insolvency and eliminated shareholder value. Debt-to-asset ratio critically unfavorable with $2.0B long-term debt versus $2.9B total assets; interest coverage of only 3.0x leaves minimal cushion. ChatGPT: Negative equity and heavy leverage heighten financial risk. Low interest coverage (2.2x) and weak quick ratio (0.62x).
What is HLF's revenue and growth?
Herbalife Ltd.. reported revenue of $1.3B.
Does HLF pay dividends?
Herbalife Ltd.. does not currently pay dividends.
Where can I find HLF SEC filings?
Official SEC filings for Herbalife Ltd.. (CIK: 0001180262) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLF's EPS?
Herbalife Ltd.. has a diluted EPS of $0.57.
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 HLF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Herbalife Ltd.. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HLF stock overvalued or undervalued?
Valuation metrics for HLF: ROE of N/A (sector avg: 15%), net margin of 4.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HLF stock in 2026?
Our dual AI analysis gives Herbalife Ltd.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HLF's free cash flow?
Herbalife Ltd..'s operating cash flow is $113.8M, with capital expenditures of $10.9M. FCF margin is 7.8%.
How does HLF compare to other Market stocks?
Vs Default sector averages: Net margin 4.7% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.23 (avg: 1.8).