NU SKIN ENTERPRISES INC - A (NUS) Stock Fundamental Analysis
NYSE:NUS - New York Stock Exchange, Inc. - US67018T1051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NUS. NUS was compared to 35 industry peers in the Personal Care Products industry. While NUS seems to be doing ok healthwise, there are quite some concerns on its profitability. NUS is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NUS had positive earnings in the past year.
NUS had a positive operating cash flow in the past year.
NUS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NUS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NUS (-2.77%) is worse than 60.00% of its industry peers.
Looking at the Return On Equity, with a value of -5.11%, NUS is in line with its industry, outperforming 48.57% of the companies in the same industry.
NUS's Return On Invested Capital of 3.49% is in line compared to the rest of the industry. NUS outperforms 48.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NUS is significantly below the industry average of 15.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.77% | ||
| ROE | -5.11% | ||
| ROIC | 3.49% |
ROA(3y)-1.25%
ROA(5y)2.75%
ROE(3y)-3.26%
ROE(5y)5.55%
ROIC(3y)5.22%
ROIC(5y)9.29%
1.3 Margins
The Operating Margin of NUS (2.98%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NUS has declined.
NUS has a Gross Margin (67.57%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NUS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | N/A | ||
| GM | 67.57% |
OM growth 3Y-34.86%
OM growth 5Y-23.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.08%
GM growth 5Y-2.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NUS is destroying value.
The number of shares outstanding for NUS has been increased compared to 1 year ago.
The number of shares outstanding for NUS has been reduced compared to 5 years ago.
Compared to 1 year ago, NUS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.81 indicates that NUS is not in any danger for bankruptcy at the moment.
NUS has a better Altman-Z score (3.81) than 62.86% of its industry peers.
NUS has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as NUS would need 3.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.62, NUS is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
NUS has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
NUS has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: NUS outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.46
WACC7.57%
2.3 Liquidity
A Current Ratio of 2.02 indicates that NUS has no problem at all paying its short term obligations.
NUS has a Current ratio of 2.02. This is comparable to the rest of the industry: NUS outperforms 57.14% of its industry peers.
A Quick Ratio of 1.29 indicates that NUS should not have too much problems paying its short term obligations.
The Quick ratio of NUS (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for NUS have decreased strongly by -36.54% in the last year.
Measured over the past years, NUS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.85% on average per year.
Looking at the last year, NUS shows a very negative growth in Revenue. The Revenue has decreased by -11.85% in the last year.
NUS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.47% yearly.
EPS 1Y (TTM)-36.54%
EPS 3Y-41.01%
EPS 5Y-22.85%
EPS Q2Q%155.56%
Revenue 1Y (TTM)-11.85%
Revenue growth 3Y-13.71%
Revenue growth 5Y-6.47%
Sales Q2Q%-12.66%
3.2 Future
Based on estimates for the next years, NUS will show a decrease in Earnings Per Share. The EPS will decrease by -5.53% on average per year.
NUS is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.06% yearly.
EPS Next Y17.87%
EPS Next 2Y-5.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.91%
Revenue Next 2Y-14.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NUS is valuated reasonably with a Price/Earnings ratio of 9.35.
94.29% of the companies in the same industry are more expensive than NUS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NUS to the average of the S&P500 Index (27.30), we can say NUS is valued rather cheaply.
NUS is valuated correctly with a Price/Forward Earnings ratio of 12.21.
NUS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NUS is cheaper than 80.00% of the companies in the same industry.
NUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NUS indicates a rather cheap valuation: NUS is cheaper than 97.14% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NUS indicates a rather cheap valuation: NUS is cheaper than 97.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as NUS's earnings are expected to decrease with -5.53% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y-5.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NUS has a Yearly Dividend Yield of 2.69%.
NUS's Dividend Yield is rather good when compared to the industry average which is at 5.67. NUS pays more dividend than 82.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NUS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of NUS decreases each year by -30.50%.
NUS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-30.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of NUS are negative and hence is the payout ratio. NUS will probably not be able to sustain this dividend level.
The Dividend Rate of NUS has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-31%
EPS Next 2Y-5.53%
EPS Next 3YN/A
9.26
+0.34 (+3.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners74.72%
Inst Owner Change0%
Ins Owners2.16%
Ins Owner Change25.24%
Market Cap457.54M
Analysts45
Price Target7.65 (-17.39%)
Short Float %3.55%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.24
Dividend Growth(5Y)-30.5%
DP-31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)75.24%
Min EPS beat(2)73.83%
Max EPS beat(2)76.64%
EPS beat(4)3
Avg EPS beat(4)40.23%
Min EPS beat(4)-13.83%
Max EPS beat(4)76.64%
EPS beat(8)6
Avg EPS beat(8)31.67%
EPS beat(12)9
Avg EPS beat(12)24.2%
EPS beat(16)13
Avg EPS beat(16)20.75%
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)1.17%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-1.06%
Revenue beat(12)4
Avg Revenue beat(12)-2%
Revenue beat(16)6
Avg Revenue beat(16)-1.29%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 12.21 | ||
| P/S | 0.27 | ||
| P/FCF | 6.94 | ||
| P/OCF | 4.2 | ||
| P/B | 0.61 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)0.99
EY10.69%
EPS(NY)0.76
Fwd EY8.19%
FCF(TTM)1.33
FCFY14.41%
OCF(TTM)2.2
OCFY23.78%
SpS33.99
BVpS15.26
TBVpS12.6
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.77% | ||
| ROE | -5.11% | ||
| ROCE | 4.42% | ||
| ROIC | 3.49% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 5.03% | ||
| OM | 2.98% | ||
| PM (TTM) | N/A | ||
| GM | 67.57% | ||
| FCFM | 3.93% |
ROA(3y)-1.25%
ROA(5y)2.75%
ROE(3y)-3.26%
ROE(5y)5.55%
ROIC(3y)5.22%
ROIC(5y)9.29%
ROICexc(3y)6.41%
ROICexc(5y)12.52%
ROICexgc(3y)8.32%
ROICexgc(5y)17.24%
ROCE(3y)6.61%
ROCE(5y)11.76%
ROICexcg growth 3Y-45.58%
ROICexcg growth 5Y-28.67%
ROICexc growth 3Y-42.83%
ROICexc growth 5Y-26.9%
OM growth 3Y-34.86%
OM growth 5Y-23.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.08%
GM growth 5Y-2.13%
F-Score5
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 65.4% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.81 |
F-Score5
WACC7.57%
ROIC/WACC0.46
Cap/Depr(3y)74.52%
Cap/Depr(5y)79.94%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.54%
EPS 3Y-41.01%
EPS 5Y-22.85%
EPS Q2Q%155.56%
EPS Next Y17.87%
EPS Next 2Y-5.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-11.85%
Revenue growth 3Y-13.71%
Revenue growth 5Y-6.47%
Sales Q2Q%-12.66%
Revenue Next Year-13.91%
Revenue Next 2Y-14.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.92%
EBIT growth 3Y-43.79%
EBIT growth 5Y-28.27%
EBIT Next Year155.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y262.24%
FCF growth 3Y-1.31%
FCF growth 5Y-8.9%
OCF growth 1Y38.62%
OCF growth 3Y-7.59%
OCF growth 5Y-8.88%