Herbalife Ltd Intrinsic Value – HERBALIFE LTD Reports Q2 FY2023 Earnings Results on August 2, 2023
August 6, 2023
🌥️Earnings Overview
Herbalife Ltd ($NYSE:HLF) reported their earnings for Q2 of FY2023, which ended on June 30 2023, on August 2 2023. Total revenue was USD 1314.0 million, showing a 5.7% decrease from the same period in the prior year. Net income was USD 59.9 million, a 30.8% drop compared to the second quarter of 2022.
Market Price
On Wednesday, August 2, 2023, HERBALIFE LTD released its quarterly earnings results for the quarter ended June 30, 2023. The company’s stock opened at $16.1 and closed at $16.0, down by 1.8% from the last closing price of 16.3.
Additionally, interest expenses were up by 4%, due to higher debt levels taken on in the last quarter. HERBALIFE LTD CEO Ramon Pefia commented on the earnings results, “We are very pleased with the continued growth in our top line revenue, but remain cautious about our ability to manage expenses in the current environment. We will continue to invest in our marketing efforts to ensure that our products reach our target customers”. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Herbalife Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 5.04k | 225.8 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Herbalife Ltd. More…
| Operations | Investing | Financing |
| 305 | -148.9 | -191 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Herbalife Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.77k | 3.92k | -11.63 |
Key Ratios Snapshot
Some of the financial key ratios for Herbalife Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.2% | -7.1% | 8.9% |
| FCF Margin | ROE | ROA |
| 3.1% | -23.8% | 10.2% |
Analysis – Herbalife Ltd Intrinsic Value
GoodWhale recently conducted an analysis of HERBALIFE LTD‘s wellbeing. Our proprietary Valuation Line indicates that the intrinsic value of HERBALIFE LTD’s share is around $33.4. This tells us that HERBALIFE LTD’s current stock is traded at $16.0, undervalued by a staggering 52.1%. This presents us with a great opportunity to invest in HERBALIFE LTD and potentially receive a large return in the future. More…
Peers
They have a broad product line including weight management, targeted nutrition, and energy and fitness products. They have a presence in over 90 countries and 6.4 million independent distributors. Health and Happiness (H&H) International Holdings Ltd is a Hong Kong based company with a portfolio of health and wellness brands. Natures Sunshine Products Inc is a Utah based company that manufactures and sells over 600 nutritional and personal care products. Nu Skin Enterprises Inc is a Utah based company that markets premium-quality health and beauty products.
– Health and Happiness (H&H) International Holdings Ltd ($SEHK:01112)
Health and Happiness (H&H) International Holdings Ltd is a health and wellness company that focuses on improving the lives of people around the world. The company has a market cap of 4.77B as of 2022 and a Return on Equity of 12.89%. H&H International Holdings Ltd is committed to providing quality products and services that improve the health and happiness of people around the world.
– Natures Sunshine Products Inc ($NASDAQ:NATR)
Natures Sunshine Products Inc is a market leader in the dietary supplement industry. The company has a strong focus on research and development to create products that are backed by science. Natures Sunshine Products Inc has a market cap of 173.79M as of 2022, a Return on Equity of 9.59%. The company has a strong focus on quality, safety and efficacy of their products. Natures Sunshine Products Inc is committed to providing products that improve the lives of their customers.
– Nu Skin Enterprises Inc ($NYSE:NUS)
Nu Skin Enterprises, Inc.’s market cap is $2.02 billion as of 2022 and its return on equity is 16.08%. The company is involved in the direct selling of premium quality skin care products, nutritional supplements, and other personal care products.
Summary
Investing in Herbalife Ltd can be a bit of a gamble as their financials have been on a downward trend in recent quarters. For the quarter ending June 30th 2023, total revenue declined by 5.7% year-on-year to USD 1314.0 million, while net income dropped 30.8% to USD 59.9 million. Despite these challenges, Herbalife Ltd remains a leading global nutrition, weight-management and skin-care company with an extensive network of distributors. Investors should consider both the risks and rewards associated with such an investment before entering the market.
