Herbalife Ltd. Common Shares (HLF)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look first for durable earnings and a margin of safety. Herbalife sells health and wellness products globally, but the filed record is uneven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.3B and net income was -$26.3M, with diluted EPS of -$0.25. That followed fiscal Q1 2026, ended 2026-03-31, with net income of $61.9M and diluted EPS of $0.57. For fiscal year 2025, ended 2025-12-31, revenue was $5.0B and net income $228.3M; fiscal 2024, ended 2024-12-31, had revenue of $5.0B and net income $254.3M. So revenue is flat and profits have not compounded. FairStock's Lynch category is SLOW GROWER — Shrinking: profit -9.3% a year over five years and revenue -1.9%. That is not the profile of a stalwart. The brand and global scale may help, but I see no clear proof of a durable moat in these numbers. Valuation looks cheap at first glance: at the 2026-10-13 close of $14.21, FairStock shows a P/E of 9.05, EV/EBITDA of 6.29, and FCF yield of 21.6% on trailing free cash flow of $322.3M. ROCE of 11.27% is decent. But financial health is questionable: Piotroski F-Score 3/9 and Altman Z-Score 0.70. A low multiple can be a value trap if earnings are deteriorating. I would demand evidence that the Q2 loss is temporary and that cash flow remains durable before calling this a bargain.

In plain English: Herbalife sells health and wellness products such as meal replacements, protein shakes, and supplements around the world. The business looks under pressure: it lost money in the latest reported quarter and profits have been uneven, though it still produces cash. At the recent price, the shares look cheap compared with that cash, but the mixed numbers mean the cheapness may reflect real problems rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer