Herbalife Ltd. (HLF) — Stock Score Summary

Herbalife Ltd. (HLF) has a MoatMap StockRank of 100/100 based on Quality (63/100), Value (82/100), and Momentum (61/100) factor scores. The current signal is STRONG BUY. Herbalife Ltd. operates on a multi-level marketing model, which inherently raises questions about its 'quality compounder' characteristics (un-copyable moat, pricing power) and has faced significant regulatory scrutiny. The 'Resilient Consumer Staples (Ex-US)' theme explicitly excludes US-focused companies, and Herbalife's model does not align with the spirit of the 'quality compounder' criteria. It's difficult to argue for an 'un-copyable moat' or a 'destination business' with loyal customers in the Nick Sleep sense, and it could be construed as a 'broken business model' under the Terry Smith lens.

Herbalife Ltd. is a global nutrition company that develops and sells weight management, nutritional, and personal care products through a direct selling model. Its competitive moat is built on its extensive global network of independent distributors, strong brand recognition in the nutrition sector, and a wide array of scientifically backed products. Herbalife is a significant player in the direct selling industry for health and wellness products, with a focus on community and personalized coaching.

Key Financial Metrics

Price$12.43
Market Cap$1.3B
P/E (TTM)5.33
P/E (Forward)3.88
Price/Book-2.44
Return on Invested Capital27.6%
Gross Margin77.8%
Operating Margin10.7%
Revenue Growth7.8%
Free Cash Flow$349M

Herbalife Ltd. operates in the Packaged Foods industry, part of the Consumer Defensive sector (United States).

Frequently Asked Questions

What is Herbalife Ltd.’s (HLF) StockRank?
MoatMap’s StockRank for Herbalife Ltd. (HLF) is 100/100, with a Strong Buy signal. It is a composite of Quality (63), Value (82), and Momentum (61) factor ranks across MoatMap’s 19,000+ stock universe.
Does Herbalife Ltd. have an economic moat?
Herbalife Ltd. (HLF) has a Quality factor score of 63/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Herbalife Ltd. a buy, hold, or sell?
MoatMap’s current signal for Herbalife Ltd. (HLF) is Strong Buy, based on a StockRank of 100/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Herbalife Ltd. in?
Herbalife Ltd. (HLF) operates in the Consumer Defensive sector, specifically the Packaged Foods industry (United States).