Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nutritional-supplement network marketing company Herbalife (HLF 6.12%) has received an alarming one-star ranking.
With that in mind, let's take a closer look at Herbalife and see what CAPS investors are saying about the stock right now.
Herbalife facts
Headquarters (founded) |
Los Angeles, Calif. (1980) |
Market Cap |
$4.0 billion |
Industry |
Personal products |
Trailing-12-Month Revenue |
$4.1 billion |
Management |
Chairman/CEO Michael Johnson CFO John DeSimone |
Return on Capital (average, past 3 years) |
45.2% |
Cash/Debt |
$333.5 million/$489.6 million |
Dividend Yield |
2.9% |
Competitors |
Amway GNC Holdings (GNC) Wal-Mart Stores (WMT -0.91%) |
On CAPS, 32% of the 654 members who have rated Herbalife believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star Brettmj, succinctly summed up the Herbalife bear case for our community: "Overpriced products, even if it isn't classified as a pyramid scheme this one will die off. [Underperform call] might go into the red for awhile but eventually people will come around to much better cheaper alternatives that don't have questionable sales tactics."
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