3 Reasons HAIN is Risky and 1 Stock to Buy Instead

Hain Celestial has gotten torched over the last six months - since April 2025, its stock price has dropped 61.7% to $1.55 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.

Is now the time to buy Hain Celestial, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think Hain Celestial Will Underperform?

Despite the more favorable entry price, we don't have much confidence in Hain Celestial. Here are three reasons we avoid HAIN and a stock we'd rather own.

1. Core Business Falling Behind as Organic Sales Decline

When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.

Hain Celestial’s demand has been falling over the last eight quarters, and on average, its organic sales have declined by 4.8% year on year.

2. EPS Trending Down

We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Sadly for Hain Celestial, its EPS declined by 55.5% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

3. Short Cash Runway Exposes Shareholders to Potential Dilution

As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by.

Hain Celestial burned through $3.17 million of cash over the last year, and its $704.8 million of debt exceeds the $54.36 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble.

Unless the Hain Celestial’s fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns.

We remain cautious of Hain Celestial until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet.

Final Judgment

Hain Celestial doesn’t pass our quality test. Following the recent decline, the stock trades at 7.3× forward P/E (or $1.55 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We’d suggest looking at a dominant Aerospace business that has perfected its M&A strategy.

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