| Company name | Herbalife Ltd. |
| Stock ticker | HLF |
| Live stock price | [stckqut]HLF[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $95.25 |
| Target stock price (averages with growth) | $101.04 |
| Target stock price (averages with no growth) | $49.22 |
| Target stock price (manual assumptions) | $84.21 |
The following company description is from Google Finance: http://www.google.com/finance?q=hlf
Herbalife Ltd. is a global nutrition company. The Company sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. It distributes and sells its products through a network of independent distributors, using the direct selling channel. The Company categorizes its science-based products into four principal groups: weight management, targeted nutrition, energy, sports & fitness and Outer Nutrition. As of December 31, 2012, it sold its products in 88 countries to and through a network of approximately 3.2 million independent distributors. In China, in order to comply with local laws and regulations, it sells its products through, sales representatives, sales officers, independent service providers and in retail stores. On December 31, 2012, the Company acquired a manufacturing facility in Winston-Salem, North Carolina.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Herbalife Ltd. as long as the price is correct. Most of the fundamentals of Herbalife Ltd. are good, in fact the company ranks as a Good company, but there are some concerns with the legal problems with the company. For this reason, I am removing the stock from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Herbalife Ltd. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $61.63
Growth: 0.18
Current EPS (TTM): $4.56
P/E: 13
Future EPS Calc: $10.43
Future Stock Price Calc: $135.61
Target stock price: $84.2
I hope that this makes you a better investor. [/s2If]