📊 HELE Key Takeaways
Is Helen Of Troy Ltd. (HELE) a Good Investment?
Helen of Troy exhibits severe financial distress with negative operating and free cash flows despite maintaining positive gross margins. The combination of declining revenue (-6.4% YoY), collapsing profitability (-826.4% net income YoY), dangerously thin interest coverage (1.2x), and $691.1M debt against minimal $21.7M cash creates material solvency and refinancing risk.
Fundamentals have deteriorated sharply: revenue is declining while operating and net losses are extreme, yielding deeply negative margins and interest coverage. Although gross margin is strong and free cash flow is positive, cash is thin versus substantial debt, elevating refinancing and covenant risks. Until margins normalize and cash generation materially improves, the risk/reward remains unfavorable.
Helen Of Troy Ltd. Key Strengths (HELE)
- Gross margin of 46% demonstrates underlying product pricing power in housewares sector
- Operating margin of 15% shows profitability at the operating level despite revenue contraction
- Current ratio of 1.78x provides adequate near-term liquidity for payables
- High gross margin (~46%), indicating pricing power/product mix
- Positive operating and free cash flow (FCF margin ~2.2%)
- Adequate current ratio (1.81x) and positive equity base
HELE Stock Risks: Helen Of Troy Ltd. Investment Risks
- Negative operating cash flow (-636K) and free cash flow (-6.4M) indicate inability to self-fund operations or service debt from earnings
- Interest coverage of 1.2x is critically low; minimal margin for error before covenant breaches with $691.1M total debt
- Revenue decline of 6.4% YoY coupled with net income collapse (-826.4%) signals deteriorating competitive position or demand destruction
- Severe operating and net losses with deeply negative margins and returns
- High leverage and minimal cash; negative interest coverage (-13.8x) suggests solvency pressure
- Revenue decline (-4.9% YoY) and sub-1.0 quick ratio limit flexibility
Key Metrics to Watch
- Operating cash flow stabilization - must return to positive territory to support debt servicing
- Interest coverage improvement - target minimum 2.0x to reduce refinancing risk
- Revenue stabilization and growth - current trajectory is unsustainable given leverage level
- Operating margin
- Interest coverage
Helen Of Troy Ltd. (HELE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Helen Of Troy Ltd. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HELE Profit Margin, ROE & Profitability Analysis
HELE vs Utilities Sector: How Helen Of Troy Ltd. Compares
How Helen Of Troy Ltd. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Helen Of Troy Ltd. Stock Overvalued? HELE Valuation Analysis 2026
Based on fundamental analysis, Helen Of Troy Ltd. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Helen Of Troy Ltd. Balance Sheet: HELE Debt, Cash & Liquidity
HELE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Helen Of Troy Ltd.'s revenue has remained relatively flat over the 5-year period, with a 10% decline. The most recent EPS of $7.03 reflects profitable operations.
HELE Revenue Growth, EPS Growth & YoY Performance
HELE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $371.7M | $35.8M | $1.51 |
| Q3 2026 | $512.8M | $49.6M | $2.17 |
| Q2 2026 | $431.8M | $17.0M | $0.74 |
| Q1 2026 | $371.7M | $6.2M | $0.26 |
| Q3 2025 | $530.7M | $49.6M | $2.17 |
| Q2 2025 | $474.2M | $17.0M | $0.74 |
| Q1 2025 | $416.8M | $6.2M | $0.26 |
| Q3 2024 | $549.6M | $51.8M | $2.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Helen Of Troy Ltd. Dividends, Buybacks & Capital Allocation
HELE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Helen Of Troy Ltd. (CIK: 0000916789)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HELE
What is the AI rating for HELE?
Helen Of Troy Ltd. (HELE) has a Combined AI Grade of C from Claude (C) and ChatGPT (D) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HELE's key strengths?
Claude: Gross margin of 46% demonstrates underlying product pricing power in housewares sector. Operating margin of 15% shows profitability at the operating level despite revenue contraction. ChatGPT: High gross margin (~46%), indicating pricing power/product mix. Positive operating and free cash flow (FCF margin ~2.2%).
What are the risks of investing in HELE?
Claude: Negative operating cash flow (-636K) and free cash flow (-6.4M) indicate inability to self-fund operations or service debt from earnings. Interest coverage of 1.2x is critically low; minimal margin for error before covenant breaches with $691.1M total debt. ChatGPT: Severe operating and net losses with deeply negative margins and returns. High leverage and minimal cash; negative interest coverage (-13.8x) suggests solvency pressure.
What is HELE's revenue and growth?
Helen Of Troy Ltd. reported revenue of $402.1M.
Does HELE pay dividends?
Helen Of Troy Ltd. does not currently pay dividends.
Where can I find HELE SEC filings?
Official SEC filings for Helen Of Troy Ltd. (CIK: 0000916789) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HELE's EPS?
Helen Of Troy Ltd. has a diluted EPS of $1.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HELE's fundamental grade?
Based on our AI fundamental analysis in August 2026, Helen Of Troy Ltd. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HELE stock overvalued or undervalued?
Valuation metrics for HELE: ROE of 4.2% (sector avg: 10%), net margin of 8.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is HELE's AI grade for 2026?
Our dual AI analysis gives Helen Of Troy Ltd. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HELE's free cash flow?
Helen Of Troy Ltd.'s operating cash flow is $-636.0K, with capital expenditures of $5.8M. FCF margin is -1.6%.
How does HELE compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 8.9% (avg: 12%), ROE 4.2% (avg: 10%), current ratio 1.78 (avg: 0.8).