Is the business good?
How good a business is HLF?
Herbalife Ltd. earns 36% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
36%
Return on invested capital · cost of capital 9.0% · 27 points above what the capital costs: growth creates value
- Operating margin
- 9.7%
Operating margin · Packaged Foods median 8.2% · 12 months to Q1 2026
- Cash conversion
- 1.56×
Cash conversion · 0.59× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +6.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 13% |
| FY2022 | 10% |
| FY2023 | 7.0% |
| FY2024 | 7.7% |
| FY2025 | 9.6% |
Details›
- Gross margin12 months to Q1 2026
- 78%
- Operating margin12 months to Q1 2026
- 9.7%
- Net margin12 months to Q1 2026
- 4.7%
- Free cash flow margin
- 7.3%
- Revenue, trailing twelve months
- $5.13B
- Free cash flow, trailing twelve months
- $374M
- Net income, trailing twelve months
- $240M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 36%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.