NU SKIN ENTERPRISES INC - A (NUS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NUS - US67018T1051 - Common Stock
11.04 USD
-0.02 (-0.18%)
We assign a fundamental rating of 5 out of 10 to NUS. NUS was compared to 36 industry peers in the Personal Care Products industry. NUS has an excellent financial health rating, but there are some minor 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.
- In the past year NUS had a positive cash flow from operations.
- NUS had positive earnings in 4 of the past 5 years.
- In the past 5 years NUS always reported a positive cash flow from operatings.
1.2 Ratios
- NUS has a better Return On Assets (7.69%) than 75.00% of its industry peers.
- NUS's Return On Equity of 13.70% is amongst the best of the industry. NUS outperforms 80.56% of its industry peers.
- The Return On Invested Capital of NUS (4.08%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for NUS is significantly below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | 13.7% | ||
| ROIC | 4.08% |
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
- NUS's Profit Margin of 7.02% is fine compared to the rest of the industry. NUS outperforms 75.00% of its industry peers.
- The Operating Margin of NUS (3.87%) 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 67.20% is in line compared to the rest of the industry. NUS outperforms 52.78% of its industry peers.
- In the last couple of years the Gross Margin of NUS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.87% | ||
| PM (TTM) | 7.02% | ||
| GM | 67.2% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NUS is destroying value.
- Compared to 1 year ago, NUS has more shares outstanding
- 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 3.82 indicates that NUS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.82, NUS is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- NUS has a debt to FCF ratio of 4.29. This is a neutral value as NUS would need 4.29 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.29, NUS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- NUS has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- NUS has a better Debt to Equity ratio (0.26) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 4.29 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.49
WACC8.33%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that NUS has no problem at all paying its short term obligations.
- NUS's Current ratio of 2.15 is in line compared to the rest of the industry. NUS outperforms 50.00% of its industry peers.
- NUS has a Quick Ratio of 1.45. This is a normal value and indicates that NUS is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of NUS (1.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
- NUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.29%, which is quite impressive.
- 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.
- NUS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.10%.
- Measured over the past years, NUS shows a decrease in Revenue. The Revenue has been decreasing by -6.47% on average per year.
EPS 1Y (TTM)64.29%
EPS 3Y-41.01%
EPS 5Y-22.85%
EPS Q2Q%100%
Revenue 1Y (TTM)-12.1%
Revenue growth 3Y-13.71%
Revenue growth 5Y-6.47%
Sales Q2Q%-15.33%
3.2 Future
- The Earnings Per Share is expected to grow by 29.90% on average over the next years. This is a very strong growth
- Based on estimates for the next years, NUS will show a decrease in Revenue. The Revenue will decrease by -5.77% on average per year.
EPS Next Y54.47%
EPS Next 2Y29.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.05%
Revenue Next 2Y-5.77%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.00, the valuation of NUS can be described as reasonable.
- NUS's Price/Earnings ratio is rather cheap when compared to the industry. NUS is cheaper than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NUS is valued rather cheaply.
- NUS is valuated cheaply with a Price/Forward Earnings ratio of 7.70.
- Based on the Price/Forward Earnings ratio, NUS is valued cheaper than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NUS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.7 |
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 91.67% of the companies listed in the same industry.
- 88.89% of the companies in the same industry are more expensive than NUS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 4.42 |
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 more expensive valuation may be justified as NUS's earnings are expected to grow with 29.90% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y29.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- NUS has a Yearly Dividend Yield of 2.18%.
- NUS's Dividend Yield is a higher than the industry average which is at 1.90.
- Compared to an average S&P500 Dividend Yield of 1.81, NUS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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
- 10.87% of the earnings are spent on dividend by NUS. This is a low number and sustainable payout ratio.
DP10.87%
EPS Next 2Y29.9%
EPS Next 3YN/A
NU SKIN ENTERPRISES INC - A / NUS FAQ
Can you provide the ChartMill fundamental rating for NU SKIN ENTERPRISES INC - A?
ChartMill assigns a fundamental rating of 5 / 10 to NUS.
What is the valuation status of NU SKIN ENTERPRISES INC - A (NUS) stock?
ChartMill assigns a valuation rating of 9 / 10 to NU SKIN ENTERPRISES INC - A (NUS). This can be considered as Undervalued.
How profitable is NU SKIN ENTERPRISES INC - A (NUS) stock?
NU SKIN ENTERPRISES INC - A (NUS) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for NUS stock?
The Price/Earnings (PE) ratio for NU SKIN ENTERPRISES INC - A (NUS) is 8 and the Price/Book (PB) ratio is 0.67.
Can you provide the dividend sustainability for NUS stock?
The dividend rating of NU SKIN ENTERPRISES INC - A (NUS) is 4 / 10 and the dividend payout ratio is 10.87%.