HLF is a high dividend payer that has displayed a decent drawdown over the last year, but year-to-date has been up nicely. HLF is cheap at 8x forward earnings and also pays a nice yield of 4.4%. Sales growth is expected to be minimal over the next two years, but earnings are expected to increase nicely potentially due to margin expansion. Cash from operations and free cash flow were both highly positive for 2023, which was good to see considering these metrics negative in the year prior. Looking at the balance sheet, HLF is high debt but this did decrease significantly from the year prior. Current debt-to-equity is 0.65x which is high, but this is the lowest that HLF has seen in the last five years. We think HLF is an OK income option as the dividned is high and growing while it is also cheap. The detractors here are the high debt and marginal sales growth and outlook.
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