Are Organic Earnings Worth More?
Hain Celestial Group (HAIN), the New York-based natural and organic foods company, and seller of Celestial Seasonings teas, wrapped up its fiscal year in June and announced the results this Wednesday. Net sales rose 22.3% for the year to $1.4 billion, net income rose 44% to $79.2 million. Investors were pleased as pesticide-free punch.
So what’s not to like about a fast-growing company that sells healthy food for a healthy profit? For one thing, profit hasn’t kept up with revenues.
YCharts Pro considers the stock considerably overvalued. It doesn’t pay a dividend, and its cash pile has shrunk to $41 million. It’s also not generating much cash.
Consumers may be willing to pay extra for more natural food, but investors may prefer theirs with chemicals.