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. NUS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NUS is cheap, but on the other hand it scores bad on growth.
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.
Of the past 5 years NUS 4 years were profitable.
NUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NUS's Return On Assets of -2.77% is on the low side compared to the rest of the industry. NUS is outperformed by 60.00% of its industry peers.
NUS has a Return On Equity of -5.11%. This is comparable to the rest of the industry: NUS outperforms 48.57% of its industry peers.
NUS has a Return On Invested Capital of 3.49%. This is comparable to the rest of the industry: NUS outperforms 48.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
NUS has a Operating Margin (2.98%) which is in line with its industry peers.
NUS's Operating Margin has declined in the last couple of years.
NUS has a Gross Margin (67.57%) which is in line with its industry peers.
NUS's Gross Margin has declined in the last couple of years.
| 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.
NUS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NUS has less shares outstanding
NUS has a better debt/assets ratio than last year.
2.2 Solvency
NUS has an Altman-Z score of 3.75. This indicates that NUS is financially healthy and has little risk of bankruptcy at the moment.
NUS has a Altman-Z score (3.75) which is in line with its industry peers.
The Debt to FCF ratio of NUS is 3.62, which is a good value as it means it would take NUS, 3.62 years of fcf income to pay off 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 | 3.75 |
ROIC/WACC0.39
WACC8.99%
2.3 Liquidity
NUS has a Current Ratio of 2.02. This indicates that NUS is financially healthy and has no problem in meeting its short term obligations.
NUS's Current ratio of 2.02 is in line compared to the rest of the industry. NUS outperforms 57.14% of its industry peers.
NUS has a Quick Ratio of 1.29. This is a normal value and indicates that NUS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.29, NUS perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
NUS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.54%.
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 -11.85% in the last year.
The Revenue has been decreasing by -6.47% on average over the past years.
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 cheaply with a Price/Earnings ratio of 7.64.
Based on the Price/Earnings ratio, NUS is valued cheaper than 97.14% of the companies in the same industry.
NUS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 9.97, the valuation of NUS can be described as reasonable.
85.71% of the companies in the same industry are more expensive than NUS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, NUS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
NUS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NUS is cheaper than 97.14% of the companies in the same industry.
97.14% 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 | 5.67 | ||
| EV/EBITDA | 3.55 |
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)0.43
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 3.00%.
NUS's Dividend Yield is rather good when compared to the industry average which is at 5.65. NUS pays more dividend than 82.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, NUS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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.
Dividend Growth(5Y)-30.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NUS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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
7.56
-0.43 (-5.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners74.72%
Inst Owner Change-1.8%
Ins Owners2.16%
Ins Owner Change26.1%
Market Cap373.54M
Analysts45
Price Target7.65 (1.19%)
Short Float %4.32%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.97 | ||
| P/S | 0.22 | ||
| P/FCF | 5.67 | ||
| P/OCF | 3.43 | ||
| P/B | 0.5 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.99
EY13.1%
EPS(NY)0.76
Fwd EY10.03%
FCF(TTM)1.33
FCFY17.65%
OCF(TTM)2.2
OCFY29.13%
SpS33.99
BVpS15.26
TBVpS12.6
PEG (NY)0.43
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 | 3.75 |
F-Score5
WACC8.99%
ROIC/WACC0.39
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%