Herbalife Nutrition Ltd. (NYSE:HLF) has a beta of 1.05, a 12-month trailing P/E ratio of 27.59. The stock’s Relative Strength Index (RSI) is 63.47, with weekly volatility at 2.06% and ATR at 1.39. The HLF stock’s 52-week price range has touched low of $20.73 and a $52.89 high. Its shares traded higher over the last trading session, gaining 0.37% on 07/30/20. The shares fell to a low of $49.96 before closing at $51.07. Intraday shares traded counted 0.66 million, which was 55.07% higher than its 30-day average trading volume of 1.48M. HLF’s previous close was $50.88 while the outstanding shares total 137.80M.
Investors have identified the Packaged Foods company Herbalife Nutrition Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.71 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Herbalife Nutrition Ltd. (HLF) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For HLF, the company has in raw cash 944.2 million on their books with 23.1 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1571700000 million total, with 984400000 million as their total liabilities.
HLF were able to record 117.3 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 104.6 million. In cash movements, the company had a total of 141.7 million as operating cash flow.
Potential earnings growth for Herbalife Nutrition Ltd. (HLF)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Herbalife Nutrition Ltd. recorded a total of 1.26 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.15% coming in sequential stages and their sales for the third quarter increasing by 3.33%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 245.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.02 billion. This allows shareholders to hold on to 137.80M with the revenue now reading 0.33 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.55 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.82 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on HLF sounds very interesting.
Is the stock of HLF attractive?
In related news, Director, Tartol John sold 25,000 shares of the company’s stock in a transaction that recorded on May 15. The sale was performed at an average price of 39.06, for a total value of 976,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.30%.
4 out of 4 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Herbalife Nutrition Ltd.. 0 analysts has assigned a Sell rating on the HLF stock. The 12-month mean consensus price target for the company’s shares has been set at $61.00.