HLFHerbalife Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.0×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HLF?
Herbalife Ltd. earns 33% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 24 points above what the capital costs: growth creates value
- Operating margin
- 9.5%
Operating margin · Packaged Foods median 7.6% · 12 months to Q2 2026
- Cash conversion
- 1.02×
Cash conversion · 0.69× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.2%
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 Q2 2026
- 78%
- Operating margin12 months to Q2 2026
- 9.5%
- Net margin12 months to Q2 2026
- 3.2%
- Free cash flow margin
- 6.2%
- Revenue, trailing twelve months
- $5.20B
- Free cash flow, trailing twelve months
- $322M
- Net income, trailing twelve months
- $164M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 33%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.