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1. Company Snapshot

1.a. Company Description

Herbalife Nutrition Ltd.offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and rest of Asia Pacific.The company provides products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.


It offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products.The company also provides literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials.It offers its products through independent service providers and sales representatives, as well as through company-operated retail platforms.


The company was formerly known as Herbalife Ltd.and changed its name to Herbalife Nutrition Ltd.in April 2018.


Herbalife Nutrition Ltd.was founded in 1980 and is headquartered in Los Angeles, California.

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1.b. Last Insights on HLF

Herbalife's recent performance has been hindered by a rare triangle pattern formation, indicating a potential drop to $5. The company's stock price has already plummeted from $61.65 in February 2019 to $6.25, its lowest level since 2009. Furthermore, Herbalife's performance has lagged behind its retail-wholesale peers, with its stock price underperforming compared to Alibaba and other sector leaders. The company's upcoming first-quarter earnings release on April 30 may provide further insight into its current financial situation.

1.c. Company Highlights

2. Herbalife's Q3 2025 Earnings: A Turning Point

Herbalife reported a net sales growth of 2.7% year-over-year to $1.3 billion in Q3 2025, above the midpoint of its guidance range. Adjusted EBITDA was $163 million, exceeding the high end of the guidance range of $150 million to $160 million. The company's adjusted diluted EPS was $0.5, beating analyst estimates of $0.47. The adjusted EBITDA margin was 12.8%, down 60 basis points year-over-year.

Publication Date: Nov -26

📋 Highlights
  • Net Sales Growth:: Q3 net sales reached $1.3 billion, up 2.7% YoY, surpassing guidance midpoint.
  • Adjusted EBITDA Performance:: Adjusted EBITDA hit $163 million, exceeding the high end of guidance ($150–$160M).
  • Debt Reduction Milestone:: Fully repaid $343 million in debt since 2024, achieving $500 million debt repayment goal ahead of schedule.
  • Pro2col Engagement:: The new digital health platform generated over 100,000 app scans in its first weeks, showing strong user adoption.
  • Mastermind Program Expansion:: 10,700 distributors globally enrolled in the leadership program, with expansion to India and plans for 2026 growth.

Regional Performance

Latin America delivered a strong quarter, with reported and local currency net sales up 11% year-over-year, driven by favorable pricing, improved sales mix, and a 2% increase in volume. North America returned to growth, with net sales up 1% year-over-year in both reported and local currency, primarily driven by favorable pricing on flat volumes. EMEA and Asia-Pacific also reported positive growth, while China saw a decline in net sales due to a 12% decline in volumes.

Strategic Progress

The company made significant progress on its strategic initiatives, including the launch of Pro2col, its next-generation digital personalized health operating system, which has seen strong engagement and enthusiasm. The Mastermind program, which celebrated its first anniversary in August, has expanded to India and is expected to be rolled out to additional markets in 2026. As Stephan Gratziani mentioned, "having 2 million distributors who are mostly focused on skin care creates a demand for certain products," highlighting the company's focus on finding the best technology and clinically proven products.

Valuation and Outlook

With a P/E Ratio of 3.74 and an EV/EBITDA of 5.24, the market appears to have factored in some of the company's challenges. Analysts estimate revenue growth of 3.5% for next year, which, combined with the company's commitment to reducing gross debt to $1.4 billion by the end of 2028, suggests a positive outlook. The company's strong cash generation, with operating cash flows up 40% year-over-year, and its focus on subscription revenue growth, with the introduction of Multiburn in the U.S., are also expected to drive future growth.

Debt Reduction and Cash Generation

The company has made significant progress in reducing its debt, having repaid $343 million in debt since announcing its debt reduction goal and over $500 million since the beginning of last year. With a Net Debt / EBITDA ratio of 3.27, the company remains committed to reducing its gross debt to $1.4 billion by the end of 2028. The company's strong cash generation and excess cash position are expected to support its debt reduction goals.

3. NewsRoom

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Herbalife Family Foundation Awards $5 Million to Support Underserved Children and Families

Dec -02

Source: businesswire.com

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Herbalife Ltd. (HLF) Presents at Bank of America Leveraged Finance Conference Transcript

Dec -02

Source: seekingalpha.com

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Herbalife CFO Fireside Chat Webcast from Furey Research Partners Hidden Gems Conference Available

Nov -25

Source: businesswire.com

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Stock Traders Buy Large Volume of Herbalife Call Options (NYSE:HLF)

Nov -25

Source: defenseworld.net

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Herbalife CEO and CFO to Participate in BofA Securities Leveraged Finance Conference on December 2

Nov -19

Source: businesswire.com

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Herbalife Expands Liftoff® Energy Line with New Cola and Ginger Beer Flavors

Nov -12

Source: businesswire.com

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High Liner Foods Incorporated (HLF:CA) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Herbalife Ltd. (HLF) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Primary Reporting Segment

Expected Growth: 3%

Herbalife Nutrition Ltd.'s 3% growth in Primary Reporting Segment is driven by increasing demand for nutrition and wellness products, particularly in emerging markets. Strong sales in Asia Pacific and Latin America, coupled with the company's strategic investments in e-commerce and digital marketing, have contributed to this growth. Additionally, the company's focus on product innovation and expansion of its product portfolio have also driven sales.

China

Expected Growth: 3%

China's 3% growth for Herbalife Nutrition Ltd. is driven by increasing health awareness, rising middle-class disposable income, and a growing demand for nutrition products. Government support for the health and wellness industry, coupled with the company's strong distribution network and localized product offerings, also contribute to this growth.

7. Detailed Products

Weight Management

Herbalife Nutrition's weight management products are designed to help individuals achieve and maintain a healthy weight. The products include meal replacement shakes, protein bars, and supplements that support weight loss and maintenance.

Targeted Nutrition

Herbalife Nutrition's targeted nutrition products are designed to support specific health needs, such as heart health, digestive health, and immune system function.

Energy and Fitness

Herbalife Nutrition's energy and fitness products are designed to support energy levels, endurance, and athletic performance.

Outer Nutrition

Herbalife Nutrition's outer nutrition products are designed to support skin, hair, and nail health.

Herbal Tea Concentrate

Herbalife Nutrition's herbal tea concentrate is a low-calorie, caffeine-free beverage that supports hydration and overall health.

8. Herbalife Nutrition Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Herbalife Nutrition Ltd. faces moderate threat from substitutes due to the presence of alternative health and wellness products in the market.

Bargaining Power Of Customers

Herbalife Nutrition Ltd. has a large customer base, but individual customers do not have significant bargaining power due to the company's strong brand presence and distribution network.

Bargaining Power Of Suppliers

Herbalife Nutrition Ltd. has a moderate dependence on suppliers for raw materials, but the company's large scale of operations and diversified supply chain mitigate the bargaining power of suppliers.

Threat Of New Entrants

Herbalife Nutrition Ltd. operates in a highly regulated industry, and new entrants face significant barriers to entry, including high capital requirements and complex regulatory compliance.

Intensity Of Rivalry

Herbalife Nutrition Ltd. operates in a highly competitive industry, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 162.03%
Debt Cost 8.55%
Equity Weight -62.03%
Equity Cost 10.21%
WACC 7.52%
Leverage -261.20%

11. Quality Control: Herbalife Nutrition Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Herbalife Nutrition

A-Score: 4.9/10

Value: 9.5

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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USANA Health Sciences

A-Score: 3.6/10

Value: 8.0

Growth: 2.2

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

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NAI

A-Score: 3.3/10

Value: 9.5

Growth: 2.9

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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BRC

A-Score: 3.2/10

Value: 7.0

Growth: 6.4

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

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Beyond Meat

A-Score: 3.0/10

Value: 9.0

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Real Good Food

A-Score: 2.8/10

Value: 9.8

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.3$

Current Price

14.3$

Potential

-0.00%

Expected Cash-Flows