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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 2025 Earnings: A Strong Foundation for Growth

Herbalife's fourth quarter and full year 2025 financial performance was strong, with net sales of $1.3 billion, up 6.3% year-over-year, and adjusted EBITDA of $156 million, exceeding the high end of guidance. The company's adjusted EBITDA margin was 12.2%, down 20 basis points year-over-year. For the full year, net sales were up nearly 1% to just over $5 billion, and adjusted EBITDA was $658 million, with margin at 13.1%. The actual EPS came out at $0.45, slightly below estimates of $0.48.

Publication Date: Mar -02

📋 Highlights
  • Q4 Net Sales Growth:: Achieved $1.3 billion in Q4 2025, a 6.3% year-over-year increase, marking the second consecutive quarter of growth.
  • Full-Year Adjusted EBITDA:: Delivered $658 million in adjusted EBITDA for 2025, with a margin of 13.1%, reflecting margin expansion of 180 basis points over two years.
  • Distributor Network Expansion:: North America saw 19% year-over-year growth in new distributors, while Latin America achieved seven consecutive quarters of year-over-year sales growth (up 18% in Q4).
  • Regional Performance Highlights:: India reported 15% reported net sales growth in Q4 2025, driven by GST benefits, and EMEA delivered 9% reported sales growth for the third consecutive quarter.
  • 2026 Guidance and Strategy:: Anticipated 1–6% reported net sales growth for 2026, with EBITDA margin expansion and new product launches focused on personalized nutrition via Pro2col and partnerships like Cristiano Ronaldo.

Regional Performance

The company's regional performance was mixed, with 3 out of 5 regions delivering year-over-year net sales growth on both a reported and local currency basis. Latin America delivered its second consecutive quarter of double-digit year-over-year growth, with reported net sales increasing 18%. EMEA reported net sales growth for the third consecutive quarter, with reported net sales up 9%. Asia Pacific reported net sales increased 5% year-over-year, while North America sales declined by less than 1% year-over-year.

Guidance and Outlook

For 2026, Herbalife expects to deliver net sales growth of 1% to 6% year-over-year, including an approximately 100 basis point tailwind from currency. The company's adjusted EBITDA margin is expected to continue expanding, improving by 180 basis points over the 2-year period. Analysts estimate next year's revenue growth at 3.9%, which is within the company's guidance range.

Valuation

Herbalife's current valuation metrics indicate a relatively attractive price. The company's P/S Ratio is 0.4, and EV/EBITDA is 6.84, suggesting that the stock may be undervalued. Additionally, the company's ROIC is 20.62%, indicating a strong return on invested capital. However, the ROE is -36.19%, which may be a concern. The Net Debt / EBITDA ratio is 3.39, indicating a manageable debt burden.

Strategic Initiatives

Herbalife is focused on expanding its capabilities in personalized nutrition and health and wellness. The company has partnered with Cristiano Ronaldo to promote its personalized nutrition plans, and is investing in digital technologies to enhance customer engagement. The company's Pro2col platform is a key strategic component of its vision, adding a connective digital layer that enhances distributor engagement and supports customers in building sustainable nutrition and healthy lifestyle habits.

3. NewsRoom

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High Liner Foods Incorporated (HLF:CA) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Herbalife: Executing Well, But No Longer Cheap

Feb -25

Source: seekingalpha.com

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Herbalife Plans to Refinance Senior Secured Debt

Feb -23

Source: businesswire.com

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Herbalife's Turnaround Accelerates With Ronaldo's Pro2col

Feb -22

Source: seekingalpha.com

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NYSE Content Update: Starfighters Space Celebrates NYSE American Listing

Feb -20

Source: prnewswire.com

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Best Value Stocks to Buy for February 20th

Feb -20

Source: zacks.com

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New Strong Buy Stocks for February 20th

Feb -20

Source:

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Cristiano Ronaldo Invests $7.5 Million Into Herbalife—Stock Surges

Feb -19

Source: forbes.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: 4.7/10

Value: 9.0

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
NAI

A-Score: 3.2/10

Value: 9.7

Growth: 2.8

Quality: 2.8

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
BRC

A-Score: 3.2/10

Value: 7.5

Growth: 6.4

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

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USANA Health Sciences

A-Score: 3.2/10

Value: 7.3

Growth: 2.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Real Good Food

A-Score: 3.1/10

Value: 10.0

Growth: 5.2

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Beyond Meat

A-Score: 3.1/10

Value: 9.2

Growth: 3.0

Quality: 5.1

Yield: 0.0

Momentum: 1.0

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

17.22$

Current Price

17.22$

Potential

-0.00%

Expected Cash-Flows