NU SKIN ENTERPRISES INC - A (NUS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NUS - US67018T1051 - Common Stock
11.06 USD
+0.03 (+0.27%)
11.06 USD
0 (0%)
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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year NUS was profitable.
- In the past year NUS had a positive cash flow from operations.
- 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
- NUS's Return On Assets of 7.69% is fine compared to the rest of the industry. NUS outperforms 75.00% of its industry peers.
- NUS has a Return On Equity of 13.70%. This is amongst the best in the industry. NUS outperforms 80.56% of its industry peers.
- NUS's Return On Invested Capital of 4.08% is in line compared to the rest of the industry. NUS outperforms 55.56% of its industry peers.
- NUS had an Average Return On Invested Capital over the past 3 years of 5.22%. This 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.
- Looking at the Operating Margin, with a value of 3.87%, NUS is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of NUS has declined.
- Looking at the Gross Margin, with a value of 67.20%, NUS is in line with its industry, outperforming 52.78% of the companies in the same industry.
- 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.
- Compared to 1 year ago, NUS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.82 indicates that NUS is not in any danger for bankruptcy at the moment.
- NUS has a better Altman-Z score (3.82) than 72.22% of its industry peers.
- 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.
- NUS has a Debt to FCF ratio of 4.29. This is amongst the best in the industry. NUS outperforms 83.33% of its industry peers.
- 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 Debt to Equity ratio of 0.26. This is in the better half of the industry: NUS outperforms 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
WACC8.32%
2.3 Liquidity
- NUS has a Current Ratio of 2.15. This indicates that NUS is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.15, NUS is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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.
- NUS has a Quick ratio (1.45) which is in line with its industry peers.
| 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.
- The earnings per share for NUS have been decreasing by -22.85% on average. This is quite bad
- Looking at the last year, NUS shows a very negative growth in Revenue. The Revenue has decreased by -12.10% 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)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
- Based on estimates for the next years, NUS will show a very strong growth in Earnings Per Share. The EPS will grow by 29.90% on average per year.
- NUS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.77% yearly.
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
- With a Price/Earnings ratio of 8.01, the valuation of NUS can be described as very 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.
- The Price/Forward Earnings ratio is 7.71, which indicates a rather cheap valuation of NUS.
- Based on the Price/Forward Earnings ratio, NUS is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of NUS to the average of the S&P500 Index (25.98), we can say NUS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 7.71 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NUS indicates a rather cheap valuation: NUS is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| 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%. Purely for dividend investing, there may be better candidates out there.
- NUS's Dividend Yield is a higher than the industry average which is at 1.90.
- NUS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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 8.01 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%.