Investment Thesis
Hain Celestial faces severe fundamental distress despite strong revenue growth, likely driven by a major acquisition undergoing problematic integration. The company is burning significant cash at the operating level with -22.3% net margin, negative ROE of -112.7%, and critically weak liquidity (current ratio 0.52x), indicating inability to cover short-term obligations. While positive operating cash flow of $66.8M provides modest resilience, the combination of deep operational losses and liquidity crisis signals imminent financial stress.
Strengths
- Positive operating cash flow of $66.8M despite net losses, indicating underlying business generates cash
- Gross profit of $212.9M with 19.5% gross margin shows core product business contributes positively
- Minimal long-term debt of $312K eliminates financial leverage risk
Risks
- Critical liquidity crisis with current ratio of 0.52x—current liabilities exceed current assets by 2:1, threatening debt service and operations
- Operating income of -$147.8M and net income of -$243.0M indicate severe integration or operational failures following major acquisition
- Negative shareholder returns with ROE of -112.7% and ROA of -20.9% destroy value despite positive cash generation
- Low gross margin of 19.5% for food sector suggests pricing power weakness or elevated cost of goods
Key Metrics to Watch
- Current ratio trend—any further decline below 0.52x signals imminent liquidity event
- Operating margin path to profitability—critical to assess integration success and operational recovery
- Cash burn rate and runway—calculate months of cash coverage given current burn despite positive OCF
Financial Metrics
Revenue
1.1B
Net Income
-243.0M
EPS (Diluted)
$-2.68
Free Cash Flow
66.8M
Total Assets
1.2B
Cash
44.3M
Profitability Ratios
Gross Margin
19.5%
Operating Margin
-13.6%
Net Margin
-22.3%
ROE
-112.7%
ROA
-20.9%
FCF Margin
6.1%
Balance Sheet & Liquidity
Current Ratio
0.52x
Quick Ratio
0.33x
Debt/Equity
0.00x
Debt/Assets
81.5%
Interest Coverage
N/A
Long-term Debt
312.0K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-13T08:33:26.656288 |
Data as of: 2026-03-31 |
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