Helen of Troy Limited (HELE): A Bull Case Theory
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Helen of Troy (HELE), owner of steady cash-generating consumer brands like OXO, Hydro Flask, Braun, and Osprey, is trading at just 3.5x adjusted P/E—an irrationally low valuation given the company's underlying fundamentals. Much of this dislocation stems from overblown tariff fears, misunderstood one-time charges like the non-cash Drybar impairment, and temporary headwinds such as lower-margin sales post-COVID.
The company is addressing these issues through Project Pegasus, a multi-year cost-saving initiative expected to deliver $75–85 million annually by 2027, while also reducing its China exposure below 20% of COGS by 2026. Beauty and wellness brands are rebounding, with Olive & June growing 8.7% in Q4, and Drybar's restructuring now complete. At the same time, HELE's $7.17 FY25 EPS and modest leverage (net debt/EBITDA ~3x with 4x interest coverage) highlight its financial resilience.
While the stock was overvalued during the COVID bull run, trading at nearly 30x earnings in December 2021 due to a temporary boost in household items, the nearly 90% decline since then has been largely due to multiple contractions, not a fundamental collapse. Revenue has declined slightly from $2.1B in 2021 to a projected $1.9B in FY2025, but book value has grown by about 40%, showing the business isn't burning cash.
Now trading below book value, HELE is a traditional, cash-generative business with recession-resistant brands that offer stability. With a base-case 50–100% upside and private equity interest a plausible catalyst, this is a classic value play with limited downside and significant rerating potential as execution continues.
Previously, we have covered a bullish thesis on On Holding AG (ONON) in October 2024, written by Sanjiv on Substack, which, like Helen of Troy (HELE), operates in the consumer space with strong brand equity and margin expansion potential. While ONON represents a premium growth story and HELE a classic value opportunity, both showcase how differentiated brands can thrive despite broader market pressures.
Helen of Troy Limited (HELE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held HELE at the end of the first quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of HELE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
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Business Wire
7 days ago
- Business Wire
Helen of Troy Limited Announces G. Scott Uzzell Appointed to Become Chief Executive Officer
EL PASO, Texas--(BUSINESS WIRE)--Helen of Troy Limited (NASDAQ: HELE), designer, developer, and worldwide marketer of branded consumer home, outdoor, beauty, and wellness products, today announced that its Board of Directors has appointed G. Scott Uzzell (Scott) as Chief Executive Officer, effective September 1, 2025. Brian Grass, the Company's current interim CEO, will return to his role as Chief Financial Officer. Timothy F. Meeker, Chairman of the Board, stated: 'Following a vigorous, deliberate, and thoughtful executive search, the Board has unanimously determined that G. Scott Uzzell is the right person to lead Helen of Troy and capitalize on the Company's leading consumer brand platform. He is a strategic leader with a strong track record of building and growing consumer brands. We believe he has the ability to bring people together, develop and retain talent, and enrich our culture and values, all while being a strong allocator of capital with sound risk management. Scott has great sensitivity to the needs, wants, and expectations of consumers and has the ability to grasp the spirit of the times. His intimate knowledge of brand building and his ability to unite and engage teams is exactly what Helen of Troy needs as it enters its next chapter to boost product innovation and growth.' Mr. Meeker continued: 'On behalf of the Board, I want to thank Brian Grass and Tracy Scheuerman for their dedicated leadership as interim CEO and CFO. Their discipline and focus have been a source of stability as we continue the work needed to deliver better execution, rebuild innovation, restore growth, and regain investor confidence. I am confident they will assist Scott in making a smooth transition.' Mr. Uzzell commented: 'I am excited to have the opportunity to lead Helen of Troy and continue to develop its distinguished family of highly trusted brands and innovations that delight consumers. I intend to leverage the Company's durable foundation as a purpose-driven innovation leader to serve the needs of consumers and to elevate lives in moments that matter everywhere, every day. I look forward to working with Helen of Troy's talented associates to return the Company to consistent growth and deliver strong value creation for shareholders. I also want to take this opportunity to thank Tim and the Board of Directors for this honor and I am eager to begin partnering with the team to build a successful future for all stakeholders.' Scott most recently served as Corporate Vice President & General Manager of Nike North America and was a member of the Nike, Inc. Executive Leadership Team. Nike North America generates +$21B revenue with +30,000 employees across all aspects of Nike and Jordan Brands. Prior to Nike North America, Scott was President & CEO of Converse, Inc. for four years where he led a turnaround built on new product innovation and marketplace excellence. Scott joined Converse, Inc. from The Coca-Cola Company, where he served as President of the Venturing & Emerging Brands Group (VEB). He led the development of a portfolio of high growth emerging brands including Honest Tea, Body Armor, Health-Ade Kombucha and Fairlife Milk. Under Scott's leadership, VEB successfully identified and invested in trend-forward brands and categories, closing multiple M&A transactions to enhance shareholder value. Scott began his career in sales and marketing for leading consumer goods companies, including Procter & Gamble, Coca-Cola, and Nabisco, before returning to Coca-Cola in 2001 to step into more prominent leadership roles. In addition, Scott serves on the SC Johnson Company Board of Directors. He is also presently a member of the Florida A&M University Board and University of Chicago Booth School Advisory Board. Scott received his B.S. in business from Florida A&M University and his MBA from the University of Chicago Booth School of Business. About Helen of Troy Limited Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon, and Olive & June. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors. For more information about Helen of Troy, please visit Forward-Looking Statements Certain written and oral statements made by the Company and subsidiaries of the Company may constitute 'forward-looking statements' as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words 'anticipates', 'assumes', 'believes', 'expects', 'plans', 'may', 'will', 'might', 'would', 'should', 'seeks', 'estimates', 'project', 'predict', 'potential', 'currently', 'continue', 'intends', 'outlook', 'forecasts', 'targets', 'reflects', 'could', and other similar words identify forward-looking statements. All statements that address operating results, events or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, including cost reduction measures, earnings per share results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company currently believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. 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UBS Lowers PT on Helen of Troy Limited (HELE) to $29 From $32, Keeps a Neutral Rating
Helen of Troy Limited (NASDAQ:HELE) is one of the best undervalued defensive stocks to buy according to analysts. On July 11, UBS lowered the firm's price target on Helen of Troy Limited (NASDAQ:HELE) to $29 from $32, keeping a Neutral rating on the shares. A woman in a spa setting, using Health & Wellness products. The firm told investors in a research note that Helen of Troy Limited (NASDAQ:HELE) reported a Q1 miss and held off on issuing fiscal 2026 guidance again, primarily due to macro uncertainty and tariffs. It added that conviction in Helen of Troy Limited's (NASDAQ:HELE) return to earnings growth remains limited. Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company with an elaborate portfolio of brands, including Curlsmith, OXO, PUR, Hot Tools, Osprey, and more. While we acknowledge the potential of HELE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
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