Stock (Symbol) |
Hain Celestial (HAIN) |
Stock Price |
$63 |
Sector |
| Food & Necessities |
Data is as of |
| August 21, 2015 |
Expected to Report |
| Feb 2 – Feb 8 |
Company Description |
 The Hain Celestial Group, Inc. manufactures, markets, distributes and sells organic and natural products under brand names, which are sold as better-for-you products. The Company operates in five segments: the United States, the United Kingdom, Canada, Europe and Hain Pure Protein. The Company’s brands include Almond Dream, Arrowhead Mills, BluePrint, Celestial Seasonings, Cully & Sully, Danival, DeBoles, Earth’s Best, Ella’s Kitchen, Europe’s Best, Farmhouse Fare, Frank Cooper’s, Gale’s, Garden of Eatin’, GG UniqueFiber, Hartley’s, Health Valley, Imagine, Johnson’s Juice Co., Lima, Linda McCartney, MaraNatha, New Covent Garden Soup Co., Rice Dream, Robertson’s, Rudi’s Organic Bakery, Rudi’s Gluten-Free Bakery, Sensible Portions, Spectrum, Spectrum Essentials and Soy Dream, among others. Its markets its personal care products under the Alba Botanica, Avalon Organics, Earth’s Best, JASON and Queen Helene brands. In addition, it offers the Joya and Happy brands. Source: Thomson Financial
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Sharek’s Take |
 Hain Celestial (HAIN) is really the market leader in organic food. Known for its Celestial Seasonings tea, the company now has 47 different brands — and the list is growing. Its distribution network includes big boys like Walmart, Kroger, Safeway and Wegmans as well as health food stores such as Whole Foods (through distributor United Natural Foods). Organic and natural foods are popular in the U.S. and now International sales are really taking off, accounting for around half Hain’s sales, up from around 10% in 2011. HAIN had been a hot stock for the last 5 years, but recently fell due to a stock market correction and is now $52 — 37% below the All-Time High of $71 it hit in August — and I will take advantage of this opportunity to buy Hain in the Growth Portfolio today. |
One Year Chart |
 These charts and tables are as of 8/21 when the stock was $63. Today with the stock selling for $52 the P/E is just 24. Yes, that’s still high considering HAIN’s Est. LTG of 15% but this stock always sells for a premium, the sector (food) is dependable, and the company is always acquiring other brands which boosts its growth rate. |
Fair Value |
 Last qtr HAIN posted 22% profit growth on a 20% gain in revenue.The company beat or met profit estimates ever qtr since at least 2012. Annual Profit Estimates have been steady all year. Typical food stock. The company just closed its 2015 fiscal year and is working in 2016 now. Qtrly estimates show some slowing growth compared to what we are used to, this may have been a reason for the stock’s fall. Still, 17% growth on average isn’t bad. |
Bottom Line |
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Hain Celestial is the leader in the growing field of organic food, and I feel lucky to be able to nab it here almost 40% off its highs. Although the P/E of 25 is high compared to its estimated long-term growth rate of 15% a year, this stock has sold for around 30x earnings the past few years. HAIN will be ranked 16th in the 28 stock Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
16 of 28Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
Hain Celestial has been an amazing investment since 2010. Do note however this isn’t a typical food stock, as profits fell during the recession when people bought cheaper groceries. Overall the stock has grown around 20% a year during the decade.