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Nature's Sunshine Products (NATR)
NASDAQ:NATR
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Nature's Sunshine Products
(NASDAQ:NATR)
64Neutral
Positive Factors
Digital Business Investment
Management continues to invest in the fast-growing digital business and execute well in key growth regions including in Europe and Asia.
FY24 Guidance
Due to strong 3Q results, management raised FY24 guidance and now expects FY24 sales to range between $443M-$448M.
Sales Performance
Sales of $118.2M beat guidance of $107-112M and were up +8.5% YOY.
Negative Factors
China Market Performance
Management highlighted strong growth in Japan, Taiwan, and healthy consumption in Korea helping offset China sales down -23% constant currency.
North American Sales
In North America, sales were down slightly due to weaker-than-anticipated customer activations.
Tariff Impact
Tariffs could potentially have a $2-3M headwind to gross margin in FY25.
Nature's Sunshine Products (NATR) vs. S&P 500 (SPY)
Market Cap
$211.82M
Dividend YieldN/A
Average Volume (3M)59.75K
Price to Earnings (P/E)28.4
Beta (1Y)0.60
Revenue Growth2.03%
EPS Growth-47.76%
CountryUS
Employees819
SectorConsumer Defensive
Sector Strength92
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.40
Shares Outstanding18,483,501
10 Day Avg. Volume59,920
30 Day Avg. Volume59,748
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)0.51
Price to Cash Flow (P/CF)6.00
P/FCF Ratio7.30
Enterprise Value/Market Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.88K
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.25Price Target Upside88.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Nature's Sunshine Products Business Overview & Revenue Model
Company DescriptionNature'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 MoneyNature's Sunshine Products generates revenue primarily through the sale of its nutritional and personal care products. The company employs a multi-channel distribution strategy, which includes direct sales through a network of independent distributors and direct-to-consumer sales via e-commerce platforms. This diversified approach allows the company to reach a broad customer base both domestically and internationally. Additionally, Nature's Sunshine has established strategic partnerships and alliances to enhance its market presence and expand its product offerings. The company's focus on quality and efficacy contributes to brand loyalty and repeat purchases, which are significant drivers of its revenue.
Nature's Sunshine Products Financial Statement Overview
Summary
Nature's Sunshine Products shows strong profitability with efficient production, but struggles with declining net profit margins and inconsistent revenue growth. The balance sheet is solid, with low leverage and good equity health. However, recent declines in cash flow performance could impact future operations.Income Statement
The company shows a strong gross profit margin consistently above 70%, indicating efficient production. However, the net profit margin has declined significantly in 2024, reflecting a potential issue in managing expenses or sales volume. Revenue growth has been volatile, with a decline in 2023 but a recovery in 2024. EBIT and EBITDA margins have also seen fluctuations, suggesting some operational inefficiencies.72
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage use. The company maintains a strong equity position compared to its assets, suggesting financial stability. The return on equity has been positive, albeit lower in the latest year, hinting at potential challenges in maximizing shareholder value recently.80
Positive
Cash Flow
The cash flow statement shows a concerning trend with zero operating cash flow in 2024, impacting free cash flow. Historically, operating cash flow was strong, showing the potential for recovery. Free cash flow to net income has varied, indicating inconsistent cash generation relative to profits.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 100.00K | 445.32M | 421.91M | 444.08M | 385.20M | Gross Profit |
| 71.50K | 321.13M | 299.76M | 328.62M | 283.93M | EBIT |
| 4.50K | 18.75M | 16.26M | 34.67M | 21.48M | EBITDA |
| 4.50K | 32.09M | 27.28M | 45.83M | 32.23M | Net Income Common Stockholders |
| 1.80K | 15.08M | 550.00K | 28.85M | 21.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 84.70M | 82.37M | 60.03M | 86.18M | 92.07M | Total Assets |
| 240.85M | 249.77M | 229.78M | 258.87M | 249.50M | Total Debt |
| 14.20M | 14.92M | 19.18M | 22.99M | 26.33M | Net Debt |
| -70.50M | -67.45M | -40.85M | -63.20M | -65.74M | Total Liabilities |
| 79.86M | 90.23M | 82.73M | 97.47M | 92.26M | Stockholders Equity |
| 160.99M | 154.06M | 142.91M | 158.20M | 155.39M |
| Cash Flow | Free Cash Flow | |||
| 14.33M | 30.75M | -6.92M | 27.94M | 32.75M | Operating Cash Flow |
| 25.30M | 41.23M | 710.00K | 34.61M | 37.66M | Investing Cash Flow |
| -10.97M | -10.48M | -7.63M | -6.61M | -4.91M | Financing Cash Flow |
| -9.90M | -7.96M | -16.25M | -31.72M | 3.88M |
Nature's Sunshine Products Technical Analysis
Negative
11.82
Price Trends
12.96
Negative
13.96
Negative
14.10
Negative
Market Momentum
-0.39
Negative
44.81
Neutral
32.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATR, the sentiment is Negative. The current price of 11.82 is below the 20-day moving average (MA) of 11.89, below the 50-day MA of 12.96, and below the 200-day MA of 14.10, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATR.
Nature's Sunshine Products Risk Analysis
Nature's Sunshine Products disclosed 25 risk factors in its most recent earnings report. Nature's Sunshine Products reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nature's Sunshine Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.50B | 28.26 | 23.11% | ― | 29.14% | 140.02% | |
64 Neutral | $211.82M | 28.37 | 4.98% | ― | 2.03% | -47.76% | |
64 Neutral | $9.24B | 14.61 | 4.35% | 185.59% | 3.94% | 5.78% | |
63 Neutral | $519.40M | 15.10 | 6.78% | ― | -2.69% | -43.24% | |
53 Neutral | $137.60M | 66.49 | 1.02% | ― | -43.80% | -97.89% | |
53 Neutral | $3.44B | ― | -3.53% | 4.43% | -6.05% | -1677.05% | |
47 Neutral | $698.26M | 2.76 | -31.74% | ― | -1.37% | 75.47% |
* Consumer Defensive Sector Average
Performance Comparison
NATR
Nature's Sunshine Products
11.82
-7.97
-40.27%
HLF
Herbalife
6.90
-1.98
-22.30%
MED
Medifast
12.58
-22.93
-64.57%
PRGO
Perrigo Company
25.19
-6.35
-20.13%
USNA
USANA Health
27.54
-15.44
-35.92%
VITL
Vital Farms
33.64
6.80
25.34%
Nature's Sunshine Products Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: -18.48%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong revenue growth, particularly in Asia-Pacific and digital sales, alongside challenges such as declining sales in North America, increased SG&A expenses, and potential tariff impacts. The positive highlights were significant but were counterbalanced by these challenges.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue
The fourth quarter of 2024 saw a reported revenue of $118 million or $120 million on a constant currency basis, marking the largest single quarter in the company's 52-year history and reflecting a 10% increase versus the prior year.
Strong Performance in Asia-Pacific
Asia-Pacific reported growth of 18% to $56.3 million, or 21% excluding foreign exchange impacts, driven by Taiwan, Japan, and Korea with local currency sales increases of 29%, 27%, and 21%, respectively.
Digital Sales Growth
Digital sales increased by 17% in the fourth quarter and 22% for the full year 2024, which is more than double the supplement industry's digital growth rate.
European Market Success
Sales in Europe during Q4 increased 8% on both a reported and local currency basis, with Central Europe seeing a 17% increase driven by Power Line products and effective field initiatives.
Negative Updates
North America Sales Decline
North America sales declined by 2% in the fourth quarter and 1% for the full year 2024, attributed to weaker-than-expected customer activation in the core business.
Operating Income Decrease
Operating income decreased to $4.6 million or 3.8% of net sales in Q4, compared to $5.7 million or 5.2% of net sales in the previous year.
Impact of Tariffs
The potential impact of tariffs could result in a $2 million to $3 million hit to gross margins if proposed tariffs, including retaliatory ones, are enacted for the entire year.
Increased SG&A Expenses
Selling, general, and administrative expenses rose to $43.7 million in Q4 from $39.9 million in the previous year, due to variable costs and onetime costs related to initiatives in Asia.
Company Guidance
During the conference call, Nature's Sunshine provided guidance for the fiscal year 2025, projecting net sales to range between $445 million and $470 million, which accounts for an estimated $5 million negative impact due to foreign exchange, implying growth between negative 1% and 5% excluding this impact. The company anticipates adjusted EBITDA to be between $38 million and $44 million, expecting a modest increase in gross margin and quarterly SG&A expenses slightly above $40 million. The guidance reflects a cautious outlook due to macroeconomic uncertainties, including potential tariff impacts on raw material costs and geopolitical factors, particularly in Eastern Europe and China. The company continues to focus on strategic initiatives such as enhancing digital capabilities, which contributed to a 17% increase in digital sales in North America during the fourth quarter of 2024.Nature's Sunshine Products Corporate Events
Executive/Board Changes
Nature’s Sunshine Products Announces Executive Salary Increases
Neutral
Mar 11, 2025
On March 4, 2025, Nature’s Sunshine Products announced salary increases for key executives. The Chief Financial Officer, Mr. L. Shane Jones, received a salary increase from $460,000 to $478,400, and the Executive Vice President, Global Supply Chain, Mr. Martin Gonzalez, had his salary raised from $390,000 to $405,600. These adjustments reflect the company’s commitment to retaining top talent and may impact its operational costs.
Executive/Board ChangesShareholder Meetings
Nature’s Sunshine Appoints Katie May to Board
Neutral
Feb 5, 2025
On January 30, 2025, Nature’s Sunshine Products announced the appointment of Ms. Katie A. May to its Board of Directors. Ms. May, a seasoned executive with a rich background in online publishing and ecommerce, will serve until the next shareholders’ meeting. Her extensive experience includes leading roles at Kidspot, ShippingEasy, and participation on various corporate boards. Additionally, Mr. Richard D. Moss has decided not to stand for re-election at the upcoming 2025 annual shareholder meeting, citing no disagreements with the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.