Helen Of Troy Stock Has Lost 27% Since Late 2019- Here’s Why
Helen of Troy (NASDAQ: HELE) stock price lost 27% from $180 in 2019 end to around $131 currently, primarily due to unfavorable changes in its P/S multiple. During this period, the company witnessed a strong 28% rise in revenues, and combined with a drop in its outstanding share count, its revenue per share actually rose 35%. Additionally, over the same period, the S&P 500 returned around 30%, meaning that HELE stock strongly underperformed the broader markets since 2019-end.
In our interactive dashboard, Why Helen of Troy Stock Moved: HELE Stock Has Lost 27% Since 2019, we break down the factors behind this move.
(A) Helen of Troy’s Total Revenue has grown 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), led primarily by a sharp rise in Health & Home and Housewares revenues, which have each added $200 million in sales since FY ’19.
- These segments helped Helen of Troy post strong sales growth in both the United States and international markets.
- Additionally, HELE’s beauty product sales have also risen around $150 million since FY ’19, further boosting the company’s revenues.
- For details about HELE revenues and comparison to peers, see Helen of Troy (HELE) Revenue Comparison
- Up 7% This Year, Will Halliburton’s Gains Continue Following Q1 Results?
- Here’s What To Anticipate From UPS’ Q1
- Should You Pick Abbott Stock At $105 After An Upbeat Q1?
- Gap Stock Almost Flat This Year, What’s Next?
- With Smartphone Market Recovering, What To Expect From Qualcomm’s Q2 Results?
- Will United Airlines Stock Continue To See Higher Levels After A 20% Rise Post Upbeat Q1?
(B) Revenue per share (RPS) increased 35% from $67.92 in FY 2019 to $91.72 currently
- Helen of Troy revenue rose from $1.7 billion in FY ’19 to $2.2 billion currently, while the outstanding share count decreased from around 25.1 million in 2019 to just a little under 24 million currently.
- Due to this, RPS has jumped from $67.92 in FY ’19 to $91.72 currently.
(C) Price-To-Sales (P/S) multiple for Helen of Troy rose strongly from 2.5x in 2019 end to 3.1x by 2020 end, but has pulled back to 1.4x currently, around 44% lower than what it was in late 2019
- Helen of Troy’s exceptional performance since 2019-end first saw its P/S multiple increase from 2.5x in 2019 to over 3x in 2020, but currently stands at around 1.4x.
- Despite HELE’s strong sales performance and increased demand, the P/S multiple has dropped steadily since late-2020 as the surging demand for housewares is expected to pull back.
- For additional details about the company’s historical returns and comparison to peers, see Helen of Troy (HELE) Stock Return.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
| Returns | Aug 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| HELE Return | -2% | -46% | 56% |
| S&P 500 Return | 1% | -13% | 85% |
| Trefis Multi-Strategy Portfolio | 3% | -11% | 252% |
[1] Month-to-date and year-to-date as of 8/4/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates