Helen Of Troy Stock Has Lost 27% Since Late 2019 – Here’s Why

0
34

Helen of Troy (NASDAQ: WHOLE) The stock price lost 27% from $180 in 2019 to approximately $131 today, mainly due to unfavorable changes in the P/S multiple. During this period, the company saw a strong revenue increase of 28%, and combined with a decrease in the number of outstanding shares, the revenue per share even increased by 35%. In addition, the S&P 500 returned around 30% over the same period, meaning HELE stock has lagged the broader markets sharply since the end of 2019.

In our interactive dashboard, Why Helen of Troy Stock moved: WHOLE stock has lost 27% since 2019we break down the factors behind this movement.

Helen of Troy’s total revenue grew 28% from $1.7 billion in FY 2019 to $2.2 billion on an LTM basis

  • HELE’s total revenue has grown from $1.7 billion in 2020 to $2.1 billion in 2021 (HELE’s fiscal year ends in February), driven primarily by strong revenue growth from Health & Home and Housewares, each of which has added $200 million in sales since FY ’19.
  • These segments helped Helen of Troy achieve strong sales growth in both the United States and international markets.
  • In addition, sales of HELE’s beauty products have increased by approximately $150 million since FY ’19, further increasing the company’s revenue.
  • For more information on HELE earnings and peer comparison, see: Helen of Troy Income Comparison

Revenue per share increased 35% from $67.92 in FY 2019 to $91.72 currently

  • Helen of Troy’s revenue increased from $1.7 billion in FY ’19 to $2.2 billion currently, while the number of shares outstanding fell from approximately 25.1 million in 2019 to just under 24 million currently.
  • As a result, the RPS has risen from $67.92 in FY ’19 to $91.72 currently.

Price-to-Sales (P/S) multiple for Helen of Troy rose sharply from 2.5x at the end of 2019 to 3.1x at the end of 2020, but has now declined to 1.4x, about 44% lower than at the end of 2019

  • Helen of Troy’s exceptional performance since the end of 2019 first saw its P/S multiple increase from 2.5x in 2019 to more than 3x in 2020, but currently stands at around 1.4x.
  • Despite HELE’s strong sales performance and increased demand, the P/S multiple has declined steadily since late 2020 as rising demand for household items is expected to slow down.
  • For more information on the company’s historical returns and comparison with peers, see: Helen of Troy Stock Return.

What if you’re looking for a more balanced portfolio instead? U.S high-quality wallet and multi-strategy portfolio have consistently beaten the market since late 2016.

Invest with Trefis Wallets that beat the market

See everything Trefis Price estimates

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here