Nature's Sunshine Products (NATR) AI Stock Analysis

• Market Cap: $421.64M
• Dividend Yield: N/A
• Average Volume (3M): 87.72K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.41
• Revenue Growth: 6.62%
• EPS Growth: -7.85%
• Country: US
• Employees: 819
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.36
• Shares Outstanding: 17,495,564
• 10 Day Avg. Volume: 112,112
• 30 Day Avg. Volume: 87,718
• PEG Ratio: -0.74
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 19.05
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: 8.58
• 1Y Price Target: $22.50
• Price Target Upside: -9.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $29.00 ▲(16.79% Upside)

Nature's Sunshine Products receives a strong overall score driven by robust financial performance, positive technical indicators, and a highly favorable earnings call. The strategic appointment of a new CEO further supports growth prospects, although valuation metrics suggest moderate pricing relative to peers.

Positive Factors

Strong free cash flow generation

Sustained FCF growth at ~40% TTM supports reinvestment in product development, marketing and international expansion without relying on external financing. Strong cash conversion also provides a buffer for cyclical pressures and funds strategic initiatives over the next 2–6 months.

Very low leverage and strong liquidity

Minimal leverage and a strong equity base give the company durable financial flexibility to fund capex or M&A, withstand margin pressures, and avoid refinancing risk. This conservative capital structure supports stable operations and strategic options over multiple quarters.

High and improving gross margins

Elevated and rising gross margins reflect product quality, formulation control and pricing power, enabling stronger profitability even with modest top-line growth. Durable margin expansion enhances ability to fund SG&A and international expansion while protecting net earnings.

Negative Factors

Modest revenue growth rate

Revenue growth under 3% TTM suggests limited top-line momentum relative to peers and may constrain operating leverage. Without sustained acceleration, scaling investments and margin improvement could be harder to translate into meaningful EPS gains over the medium term.

Low net profit margin despite high gross margin

A low ~4.4% net margin despite >70% gross margins implies high SG&A or distributor costs. This limits retained earnings and sensitivity to cost inflation or tariff pressures, making long-term earnings vulnerability higher if operating expenses cannot be sustainably reduced.

Reliance on MLM distributor model

Dependence on an MLM channel creates structural growth constraints: recruitment-driven sales can be volatile, increase variable compensation costs, and attract regulatory scrutiny. Over months this can limit predictable revenue growth and raise compliance and retention expenses.

Nature's Sunshine Products Business Overview & Revenue Model

Company Description

Nature's Sunshine Products, Inc., a natural health and wellness company, primarily manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature's Sunshine and Synergy WorldWide brands through a sales force of independent consultants. The company was founded in 1972 and is headquartered in Lehi, Utah.

How the Company Makes Money

Nature's Sunshine Products generates revenue through several key streams, primarily by selling its health and wellness products directly to consumers and through a network of independent distributors. This multi-level marketing (MLM) model allows individuals to earn commissions not only on their sales but also on the sales made by their recruited distributors, fostering a community-driven sales strategy. The company also benefits from e-commerce sales through its website, providing a direct-to-consumer channel. Additionally, partnerships with various health and wellness retailers enhance its market reach. The company's ongoing investment in product innovation and marketing further drives sales growth and brand loyalty.

Nature's Sunshine Products Financial Statement Overview

Summary

Nature's Sunshine Products exhibits solid financial health with consistent revenue growth, strong profitability margins, and effective cash flow management. The balance sheet is stable with low leverage, and the company is well-positioned to capitalize on future growth opportunities in the packaged foods industry.

Income Statement

Nature's Sunshine Products shows a steady revenue growth rate of 2.98% TTM, with a strong gross profit margin of 71.91%. The net profit margin has improved to 4.36% TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins, while positive, suggest room for operational efficiency improvements.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.086 TTM, reflecting prudent financial management. Return on Equity (ROE) is at 9.42% TTM, showing a decent return for shareholders. The equity ratio is strong, indicating a solid capital structure with a good proportion of equity financing.

Cash Flow

Free cash flow growth is robust at 39.84% TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.32, indicating healthy cash flow relative to net income. The free cash flow to net income ratio of 0.88 suggests effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	474.54M	454.36M	445.32M	421.91M	444.08M	385.20M
Gross Profit	343.01M	324.69M	321.13M	299.76M	328.62M	283.93M
EBITDA	41.96M	32.79M	32.09M	31.15M	43.23M	33.67M
Net Income	15.09M	7.70M	15.08M	-390.00K	28.85M	21.34M
Balance Sheet
Total Assets	264.81M	240.85M	249.77M	229.78M	258.87M	249.50M
Cash, Cash Equivalents and Short-Term Investments	95.55M	84.70M	82.37M	60.03M	86.18M	92.07M
Total Debt	14.29M	14.20M	14.92M	19.18M	22.99M	26.33M
Total Liabilities	98.10M	79.86M	90.23M	82.73M	97.47M	92.26M
Stockholders Equity	160.50M	155.31M	154.06M	142.91M	158.20M	155.39M
Cash Flow
Free Cash Flow	31.27M	14.33M	30.75M	-6.92M	27.94M	32.75M
Operating Cash Flow	37.61M	25.30M	41.23M	710.00K	34.61M	37.66M
Investing Cash Flow	-6.34M	-10.97M	-10.48M	-7.63M	-6.61M	-4.91M
Financing Cash Flow	-15.82M	-9.90M	-7.96M	-16.25M	-31.72M	3.88M

Nature's Sunshine Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATR, the sentiment is Positive. The current price of 24.83 is above the 20-day moving average (MA) of 22.95, above the 50-day MA of 22.05, and above the 200-day MA of 16.82, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NATR.

Nature's Sunshine Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$421.64M	30.60	9.52%	―	6.62%	-7.85%
HLF	71 Outperform	$1.70B	5.43	―	―	-0.78%	265.56%
LFVN	66 Neutral	$73.54M	7.52	33.31%	2.81%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STKL	58 Neutral	$554.27M	-898.04	2.23%	―	11.31%	99.83%
USNA	56 Neutral	$390.66M	24.36	3.20%	―	5.88%	-68.62%
NAII	48 Neutral	$24.95M	-2.09	-15.93%	―	18.19%	-35.22%