HELE appears cheap but the author warns against buying until management demonstrates business stability given earnings misses and refinancing risk.
HELE — AVOID HELE is cheap but should not be bought while it continues to miss earnings guidance. Management lacks a grasp on the business, so outside observers cannot reliably judge business trends. An $800mm loan due 2030 with a below-6% coupon would likely need 8%+ if refinanced tomorrow, adding $16mm+ of incremental interest expense (about one-third of trailing twelve-month net income); the company must first demonstrate stability.
HELE is cheap but you cannot buy it while it continues to miss earnings guidance.