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Nature's Sunshine Products (NATR)
NASDAQ:NATR
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Nature's Sunshine Products
(NASDAQ:NATR)
Rating:80Outperform
Price Target:
$19.00
▲(9.57% Upside)
Positive Factors
Earnings
Sales of $118.2M beat guidance of $107-112M and were up +8.5% YOY.
Financial Performance
Gross margin increased to 72.1%, driven by price increases and cost-saving initiatives.
Market Expansion
Revenue growth led by Asia Pacific and Europe, marked by ongoing momentum and market expansion.
Negative Factors
Regional Sales Decline
North American sales were down -1.6% YOY and LATAM was down -4.8% YOY.
Tariff Impact
Tariffs could potentially have a $2-3M headwind to gross margin in FY25.
Nature's Sunshine Products (NATR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$296.28M
Dividend YieldN/A
Average Volume (3M)102.82K
Price to Earnings (P/E)23.1
Beta (1Y)0.57
Revenue Growth4.33%
EPS Growth-6.33%
CountryUS
Employees819
SectorConsumer Defensive
Sector Strength48
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.35
Shares Outstanding17,635,551
10 Day Avg. Volume129,331
30 Day Avg. Volume102,818
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit0.67
Enterprise Value/Ebitda6.13
Forecast
1Y Price Target
$20.67Price Target Upside19.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 health and wellness products, which are marketed through a direct selling model. This model allows independent distributors to sell products directly to consumers, creating a network of sales representatives who earn commissions based on their sales volume. Key revenue streams include sales of dietary supplements, herbal products, and essential oils. The company also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, Nature's Sunshine benefits from a loyal customer base and a growing trend towards natural and wellness-related products, which supports its earnings and overall financial performance.
Nature's Sunshine Products Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook, with significant revenue growth, strong digital business performance, and raised full-year guidance. However, challenges in certain regions and increased expenses were noted.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q2 2025 was $115 million, a 4% increase compared to the prior year and a 2% increase in constant currency.
Adjusted EBITDA Increase
Adjusted EBITDA for Q2 2025 was $11 million, an 8% increase compared to the prior year's adjusted EBITDA of $10 million.
Significant Growth in Digital Business
North America's digital business grew by 34%, indicating strong momentum and successful digital transformation efforts.
Record Growth in Japan
Sales in Japan increased by 27%, driven by strong customer and order growth and participation in the Autoship program.
Full-Year Guidance Raised
The company raised its full-year revenue guidance to $460 million-$475 million and adjusted EBITDA guidance to $41 million-$45 million, reflecting confidence in continued business momentum.
Cash Position and Debt Management
The company reported cash and cash equivalents of $81.3 million with zero debt, indicating strong financial health.
Negative Updates
Challenges in Taiwan and South Korea
Sales in Taiwan and South Korea faced difficulties due to a challenging macroeconomic environment, with Taiwan slashing its GDP forecast and South Korea narrowly avoiding recession.
SG&A Expenses Increase
SG&A expenses increased to $43.7 million from $38.6 million in the previous year, primarily due to compensation timing, digital ad spend, and nonrecurring expenses.
Operating Income Decline
Operating income decreased to $4.3 million or 3.7% of net sales compared to $5.6 million or 5.1% of net sales in the year-ago quarter.
Eastern Europe Sales Decline
Sales in Eastern Europe declined by 5%, impacted by the timing of price changes between Q1 and Q2.
Company Guidance
During the second quarter of 2025, Nature's Sunshine achieved a revenue of $115 million, marking a 4% increase compared to the previous year, with a 2% rise in constant currency. The adjusted EBITDA for the quarter reached $11 million, an 8% rise from the previous year's $10 million. The company saw significant growth in Japan with a 27% sales increase and notable digital business growth in North America at 34%. The Subscribe & Thrive Autoship program also expanded, representing over 50% of direct-to-consumer sales. In terms of regional performance, Asia Pacific sales increased by 5%, with Japan as a standout performer, although Taiwan and South Korea experienced softer results. In North America, sales grew by 4%, driven by digital advancements and improved field fundamentals. Europe saw a 1% sales increase, with strong growth in Central Europe. The company raised its full-year guidance, now expecting revenue between $460 million and $475 million and adjusted EBITDA between $41 million and $45 million.Nature's Sunshine Products Financial Statement Overview
Summary
Nature's Sunshine Products demonstrates solid financial health with steady revenue growth, strong margins, and a robust balance sheet. While profitability ratios indicate room for improvement, the company's low leverage and strong cash flow position it well for future growth. Maintaining this trajectory could enhance profitability and shareholder value.Income Statement
The income statement reveals steady revenue growth with a TTM revenue of $460.8 million, marking a 1.42% increase from the previous year. Gross profit margin is robust at 71.78%, indicating effective cost management. However, the net profit margin stands at 3.06%, suggesting limited profitability after expenses. The EBIT margin is 4.40% and EBITDA margin is 6.34%, reflecting moderate operational efficiency. Overall, the company shows a stable growth trajectory with room for improvement in profitability.76
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.10, demonstrating conservative leverage. Return on Equity (ROE) is 8.62%, indicating decent returns for shareholders. Equity ratio stands at 64.22%, highlighting a solid equity position and financial stability. Overall, the company maintains a healthy balance sheet with low risk and good equity utilization.82
Very Positive
Cash Flow
Cash flow analysis shows positive free cash flow growth at 11.52% compared to the prior year, enhancing financial flexibility. The operating cash flow to net income ratio is 1.54, suggesting efficient cash generation relative to its earnings. The free cash flow to net income ratio is robust at 1.13, indicating strong cash conversion. Despite this, the company should focus on sustaining cash flow improvements to support future growth.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 460.82M | 454.36M | 445.32M | 421.91M | 444.08M | 385.20M |
| Gross Profit | 330.72M | 324.69M | 321.13M | 299.76M | 328.62M | 283.93M |
| EBITDA | 35.99M | 32.79M | 32.09M | 31.15M | 45.83M | 32.23M |
| Net Income | 14.11M | 7.70M | 15.08M | -390.00K | 28.85M | 21.34M |
Balance Sheet | ||||||
| Total Assets | 254.88M | 240.85M | 249.77M | 229.78M | 258.87M | 249.50M |
| Cash, Cash Equivalents and Short-Term Investments | 81.34M | 84.70M | 82.37M | 60.03M | 86.18M | 92.07M |
| Total Debt | 15.63M | 14.20M | 14.92M | 19.18M | 22.99M | 26.33M |
| Total Liabilities | 91.19M | 79.86M | 90.23M | 82.73M | 97.47M | 92.26M |
| Stockholders Equity | 157.68M | 155.31M | 154.06M | 142.91M | 158.20M | 155.39M |
Cash Flow | ||||||
| Free Cash Flow | 15.98M | 14.33M | 30.75M | -6.92M | 27.94M | 32.75M |
| Operating Cash Flow | 21.74M | 25.30M | 41.23M | 710.00K | 34.61M | 37.66M |
| Investing Cash Flow | -5.76M | -10.97M | -10.48M | -7.63M | -6.61M | -4.91M |
| Financing Cash Flow | -14.16M | -9.90M | -7.96M | -16.25M | -31.72M | 3.88M |
Nature's Sunshine Products Technical Analysis
Positive
17.34
Price Trends
15.67
Positive
14.67
Positive
14.55
Positive
Market Momentum
0.44
Negative
65.46
Neutral
83.63
Negative
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 17.34 is above the 20-day moving average (MA) of 16.53, above the 50-day MA of 15.67, and above the 200-day MA of 14.55, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NATR.
Nature's Sunshine Products Risk Analysis
Nature's Sunshine Products disclosed 26 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $296.28M | 23.09 | 9.15% | ― | 4.33% | -6.33% | |
80 Outperform | $343.39M | 83.99 | 18.79% | ― | 17.04% | -23.81% | |
75 Outperform | $173.08M | 22.54 | 21.88% | ― | 3.91% | -1.39% | |
74 Outperform | $170.57M | 19.41 | 30.11% | 1.22% | 8.22% | 159.71% | |
63 Neutral | $20.49B | 14.78 | -2.88% | 3.11% | 1.86% | -5.76% | |
46 Neutral | $163.36M | ― | -31.83% | ― | -8.50% | -186.18% | |
42 Neutral | $60.79M | ― | -8.34% | ― | 22.79% | 74.00% |
* Consumer Defensive Sector Average
Performance Comparison
NATR
Nature's Sunshine Products
17.34
4.29
32.87%
HAIN
Hain Celestial
1.86
-6.61
-78.04%
LFVN
LifeVantage
13.46
3.81
39.48%
FTLF
FitLife Brands
18.43
1.71
10.23%
MAMA
Mama's Creations
9.40
1.75
22.88%
LSF
Laird Superfood
5.72
2.14
59.78%
Nature's Sunshine Products Corporate Events
M&A TransactionsStock Buyback
Nature’s Sunshine Buys Out Fosun Pharma’s Joint Ventures
Neutral
Jul 7, 2025
On June 27, 2025, Fosun Pharma sold a significant portion of its shares in Nature’s Sunshine Products, reducing its ownership below 5%. Consequently, on June 30, 2025, Nature’s Sunshine Products agreed to repurchase Fosun Pharma’s interests in their joint ventures in Hong Kong and Shanghai for a total of $7 million, subject to regulatory approvals in China.
Private Placements and FinancingStock Buyback
Nature’s Sunshine Announces Secondary Offering and Buyback
Neutral
Jun 27, 2025
On June 25, 2025, Nature’s Sunshine Products, Inc. entered into an underwriting agreement for a secondary public offering of 2,854,607 shares of common stock at $12.00 per share, with no proceeds going to the company. A concurrent share repurchase agreement was also approved, allowing the company to buy back up to $15 million of its shares, potentially impacting its stock value and market positioning.
Executive/Board ChangesBusiness Operations and Strategy
Nature’s Sunshine CEO Terrence Moorehead Steps Down
Neutral
Jun 2, 2025
On May 28, 2025, Terrence O. Moorehead, the President and CEO of Nature’s Sunshine Products, Inc., announced his decision to step down from his roles, pending the appointment of a successor. This leadership change, announced on June 2, 2025, could impact the company’s strategic direction and stakeholder confidence as it navigates the transition.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.