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 37 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
With a Return On Assets value of -9.98%, NUS is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
NUS's Return On Equity of -22.50% is on the low side compared to the rest of the industry. NUS is outperformed by 62.16% of its industry peers.
NUS has a Return On Invested Capital (3.42%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NUS is significantly below the industry average of 13.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.98% | ||
| ROE | -22.5% | ||
| ROIC | 3.42% |
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 (2.93%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NUS has declined.
NUS's Gross Margin of 68.23% is fine compared to the rest of the industry. NUS outperforms 62.16% of its industry peers.
NUS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.93% | ||
| PM (TTM) | N/A | ||
| GM | 68.23% |
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
NUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for NUS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.41 indicates that NUS is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.41, NUS perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
The Debt to FCF ratio of NUS is 5.61, which is a neutral value as it means it would take NUS, 5.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NUS (5.61) is better than 64.86% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NUS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, NUS is doing worse than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.45
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.82 indicates that NUS should not have too much problems paying its short term obligations.
NUS has a Current ratio (1.82) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that NUS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, NUS is in line with its industry, outperforming 56.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for NUS have decreased strongly by -53.80% in the last year.
NUS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.85% yearly.
NUS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.04%.
The Revenue has been decreasing by -6.47% on average over the past years.
EPS 1Y (TTM)-53.8%
EPS 3Y-41.01%
EPS 5Y-22.85%
EPS Q2Q%2.7%
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y-13.71%
Revenue growth 5Y-6.47%
Sales Q2Q%-8.82%
3.2 Future
Based on estimates for the next years, NUS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.31% on average per year.
Based on estimates for the next years, NUS will show a decrease in Revenue. The Revenue will decrease by -7.77% on average per year.
EPS Next Y24.88%
EPS Next 2Y13.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.4%
Revenue Next 2Y-7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.35, which indicates a very decent valuation of NUS.
Based on the Price/Earnings ratio, NUS is valued cheaper than 94.59% of the companies in the same industry.
NUS is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.49, which indicates a rather cheap valuation of NUS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NUS indicates a rather cheap valuation: NUS is cheaper than 97.30% of the companies listed in the same industry.
NUS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUS is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NUS is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.63 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
NUS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NUS's earnings are expected to grow with 13.31% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y13.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NUS has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.02, NUS pays a better dividend. On top of this NUS pays more dividend than 83.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, NUS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of NUS decreases each year by -30.50%.
NUS has paid a dividend for at least 10 years, which is 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.
Dividend Growth(5Y)-30.5%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
NUS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.14%
EPS Next 2Y13.31%
EPS Next 3YN/A
7.95
-0.09 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-2.11%
Ins Owners1.92%
Ins Owner Change21.95%
Market Cap395.27M
Analysts46.67
Price Target7.4 (-6.92%)
Short Float %4.39%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.24
Dividend Growth(5Y)-30.5%
DP-8.14%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)31.4%
Min EPS beat(2)-13.83%
Max EPS beat(2)76.64%
EPS beat(4)3
Avg EPS beat(4)40.45%
Min EPS beat(4)-13.83%
Max EPS beat(4)76.64%
EPS beat(8)6
Avg EPS beat(8)23.83%
EPS beat(12)9
Avg EPS beat(12)18.45%
EPS beat(16)13
Avg EPS beat(16)17.68%
Revenue beat(2)1
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)1.17%
Revenue beat(4)2
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)1.17%
Revenue beat(8)3
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.93%
Revenue beat(16)6
Avg Revenue beat(16)-1.1%
PT rev (1m)4.82%
PT rev (3m)-12.12%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-26.88%
EPS NY rev (1m)24.82%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)-11.38%
Revenue NQ rev (3m)-14.02%
Revenue NY rev (1m)-8.94%
Revenue NY rev (3m)-11.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 7.49 | ||
| P/S | 0.23 | ||
| P/FCF | 5.63 | ||
| P/OCF | 3.54 | ||
| P/B | 0.61 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.85
EY10.69%
EPS(NY)1.06
Fwd EY13.35%
FCF(TTM)1.41
FCFY17.75%
OCF(TTM)2.25
OCFY28.27%
SpS34.84
BVpS13.1
TBVpS9.93
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.98% | ||
| ROE | -22.5% | ||
| ROCE | 4.33% | ||
| ROIC | 3.42% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.91% | ||
| OM | 2.93% | ||
| PM (TTM) | N/A | ||
| GM | 68.23% | ||
| FCFM | 4.05% |
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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.61 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 59.57% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 92.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.41 |
F-Score5
WACC7.67%
ROIC/WACC0.45
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)-53.8%
EPS 3Y-41.01%
EPS 5Y-22.85%
EPS Q2Q%2.7%
EPS Next Y24.88%
EPS Next 2Y13.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y-13.71%
Revenue growth 5Y-6.47%
Sales Q2Q%-8.82%
Revenue Next Year-10.4%
Revenue Next 2Y-7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.4%
EBIT growth 3Y-43.79%
EBIT growth 5Y-28.27%
EBIT Next Year117.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.64%
FCF growth 3Y-1.31%
FCF growth 5Y-8.9%
OCF growth 1Y-5.81%
OCF growth 3Y-7.59%
OCF growth 5Y-8.88%