📊 HLF Key Takeaways
Is HLF a Good Investment? Thesis Analysis
Herbalife faces severe balance sheet distress with negative stockholders' equity of -$515.1M and excessive leverage ($2.0B debt vs. $353.1M cash), creating material financial risk despite positive operating cash flows. Stagnant revenue growth (+0.9%) and declining EPS (-12.0%) indicate deteriorating fundamental momentum, while weak liquidity ratios (Quick Ratio 0.62x) and thin interest coverage (2.2x) leave minimal cushion for operational disruption.
Why Buy HLF? Key Strengths
- Strong gross margins of 77.9% demonstrate pricing power and operational efficiency
- Positive operating cash flow of $333.3M and free cash flow of $252.9M provide near-term liquidity
- Established revenue base of $5.0B across global distribution network
HLF Investment Risks to Consider
- Critical: Negative stockholders' equity of -$515.1M indicates insolvency on book basis and unsustainable capital structure
- Excessive leverage: $2.0B long-term debt with only 2.2x interest coverage leaves minimal margin for error
- Stagnant growth trajectory: Revenue growth of 0.9% YoY and flat net income (+0.2%) with declining EPS (-12.0%) suggest deteriorating business quality
- Weak liquidity: Quick ratio of 0.62x and current ratio of 1.13x create vulnerability to cash flow disruptions
- Multi-level marketing business model exposed to regulatory and reputational risks
Key Metrics to Watch
- Debt reduction and path to positive equity restoration
- Revenue growth acceleration above 5% YoY
- Interest coverage ratio improvement above 3.5x
- Quarterly operating cash flow sustainability and capital allocation decisions
HLF Financial Metrics
💡 AI Analyst Insight
HERBALIFE LTD. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HLF Profitability Ratios
HLF vs Default Sector
How HERBALIFE LTD. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HLF Overvalued or Undervalued?
Based on fundamental analysis, HERBALIFE LTD. has mixed fundamental signals 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.
HLF Balance Sheet & Liquidity
HLF 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HLF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.3B | $59.9M | $0.60 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HLF Capital Allocation
HLF SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLF's key strengths?
Claude: Strong gross margins of 77.9% demonstrate pricing power and operational efficiency. Positive operating cash flow of $333.3M and free cash flow of $252.9M provide near-term liquidity.
What are the risks of investing in HLF?
Claude: Critical: Negative stockholders' equity of -$515.1M indicates insolvency on book basis and unsustainable capital structure. Excessive leverage: $2.0B long-term debt with only 2.2x interest coverage leaves minimal margin for error.
What is HLF's revenue and growth?
HERBALIFE LTD. reported revenue of $5.0B.
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 $2.20.
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 April 2026, HERBALIFE LTD. has a SELL rating with 78% 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 4.5% (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 $333.3M, with capital expenditures of $80.4M. FCF margin is 5.0%.
How does HLF compare to other Default stocks?
Vs Default sector averages: Net margin 4.5% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.13 (avg: 1.8).