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Why NYSE:NUS is a Top Pick for Dividend Investors.

By Mill Chart

Last update: Nov 13, 2023

NU SKIN ENTERPRISES INC - A (NYSE:NUS) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:NUS demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:NUS

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:NUS has achieved a 7 out of 10:

  • With a Yearly Dividend Yield of 9.40%, NUS is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 4.74, NUS pays a better dividend. On top of this NUS pays more dividend than 94.87% of the companies listed in the same industry.
  • NUS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.74.
  • NUS has been paying a dividend for at least 10 years, so it has a reliable track record.
  • NUS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Examination for NYSE:NUS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:NUS, the assigned 5 for health provides valuable insights:

  • An Altman-Z score of 3.44 indicates that NUS is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.44, NUS is doing good in the industry, outperforming 74.36% of the companies in the same industry.
  • NUS has a Debt to FCF ratio of 257.22. This is in the better half of the industry: NUS outperforms 61.54% of its industry peers.
  • NUS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:NUS was assigned a score of 5 for profitability:

  • NUS's Return On Assets of 3.70% is fine compared to the rest of the industry. NUS outperforms 66.67% of its industry peers.
  • NUS's Return On Equity of 7.83% is fine compared to the rest of the industry. NUS outperforms 69.23% of its industry peers.
  • The 3 year average ROIC (10.53%) for NUS is well above the current ROIC(5.42%). The reason for the recent decline needs to be investigated.
  • With an excellent Gross Margin value of 71.08%, NUS belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of NUS contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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