Hain Celestial Group – Glaucus Research

THE HAIN CELESTIAL GROUP, INC. (“Hain” or the “Company”) is a $3 billion roll-up of disparate food brands that we believe is masquerading as a healthy/organic food company. In this report we present compelling evidence (based on independent lab tests and other due diligence) suggesting that products representing 85% of the Company’s 2012 internal growth are beset by quality control issues and/or deceptive marketing practices. We believe that once the Company’s exaggerated claims are exposed, Hain will revert to its historical internal growth rate of 3% and eventually trade in-line with mature packaged goods companies at a 15.5x forward p/e multiple. As Hain currently trades at 24x forward earnings, this implies downside of 35%.

Company Name
Ticker
Investment Thesis
Exchange
Initiation Date
Initiation Market Cap (in USDmm)
Initiation Avg Volume (Shares per day)
Price at Initiation
Price Target
Current Price
% Change
Hain Celestial Group – Glaucus Research
HAIN
consumer watchdog
nasdaq
2/21/2013
$2,700
1,000,000
USD 29.03
USD 16