Skip to Content

The Hain Celestial Group Inc HAIN

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

We Don’t Think Hain Celestial’s Shares Reflect the Full Potential of Its Turnaround Efforts

Analyst Note

| Rebecca Scheuneman, CFA |

We think investors underestimate the degree of improvements to result from Hain Celestial’s turnaround, which has been underway since Mark Schiller took the helm in fiscal 2019 after a string of acquisitions left the firm with onerous complexity and a lack of focus. To date, the firm has undergone significant portfolio reshaping (it divested 20% of its sales base) and overhauled its marketing and innovation practices, leading to improved sales trends (excluding product discontinuations) and a 440-basis-point improvement in operating margins. Over the long term, we think Hain will enjoy 7% organic sales growth (in line with category growth), and 15% operating margins, driven by $200 million in cost savings we expect by fiscal 2025. This is above the 5% growth and 13% operating margins implied in current FactSet consensus.

Read Full Analysis

Company Profile

Business Description

Hain Celestial makes better-for-you natural and organic consumer products, with 67% of fiscal 2021 revenue considered grocery, 16% snacks, 10% personal care, and 7% tea. Some of the company’s most recognized U.S. brands (48% of sales) are Celestial Seasonings, Terra, Garden of Eatin’, Sensible Portions, Greek Gods yogurt, and Earth’s Best baby food. Hain also maintains several market-leading brands in the U.K. (31% of sales), such as Ella’s Kitchen baby food, New Covent Garden soup, Linda McCartney's plant-based meats, Sun-Pat nut butters, and Hartley's fruit spreads. Its products can be found in traditional grocery stores, natural foods supermarkets, specialty health stores, mass-market retailers, club warehouses, drugstores, convenience stores, restaurants, and e-commerce sites.

Contact
1111 Marcus Avenue, Lake Success
New York, NY, 11042
T +1 516 587-5000
Sector Consumer Defensive
Industry Packaged Foods
Most Recent Earnings Jun 30, 2021
Fiscal Year End Jun 30, 2021
Stock Type Slow Growth
Employees 3,087