Natural Health Trends (NHTC) AI Stock Analysis

• Market Cap: $58.14M
• Dividend Yield: 15.47%
• Average Volume (3M): 24.00K
• Price to Earnings (P/E): 101.4
• Beta (1Y): 0.50
• Revenue Growth: -2.19%
• EPS Growth: 0.60%
• Country: US
• Employees: 139
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Retail - Discretionary
• EPS (TTM): 0.05
• Shares Outstanding: 11,513,075
• 10 Day Avg. Volume: 19,780
• 30 Day Avg. Volume: 23,999
• PEG Ratio: 167.66
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.39
• Price to Cash Flow (P/CF): 169.10
• P/FCF Ratio: 218.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

NHTC's stock score of 54.8 reflects the company's struggles with declining revenue and profitability issues, despite maintaining a stable balance sheet. Technical analysis shows neutral momentum, and while the high dividend yield is a positive, the high P/E ratio suggests overvaluation. Earnings call insights indicate mixed performance with market growth in some regions but overall stagnant sales and increased operating losses.

Natural Health Trends Business Overview & Revenue Model

Company Description

Natural Health Trends Corp (NHTC) is a direct-selling and e-commerce company that focuses on providing premium health and wellness products. The company's core product offerings include personal care, wellness, and lifestyle products, marketed under various brand names. Operating in the global market, NHTC primarily targets consumers seeking holistic and natural health solutions.

How the Company Makes Money

Natural Health Trends generates revenue through its direct-selling business model, where independent distributors sell their health and wellness products directly to consumers. These distributors, who are part of a multi-level marketing network, earn commissions on their sales and the sales made by their recruited team members. NHTC's revenue streams are significantly influenced by the number of active distributors and the volume of product sales they achieve. The company also leverages e-commerce platforms to expand its reach and facilitate product sales. Additionally, strategic partnerships and international market expansions contribute to its financial performance, allowing NHTC to tap into new consumer bases and diversify its revenue sources.

Natural Health Trends Financial Statement Overview

Summary

NHTC faces significant challenges with declining revenues and profitability issues. The income statement reflects declining revenue and negative margins, indicating difficulties in operational efficiency. The balance sheet shows low leverage but declining equity, pointing to potential long-term concerns. Cash flow problems are evident with consistent negative free cash flow and struggles in generating cash from operations.

Income Statement

NHTC's revenue has been declining over the years, with a revenue decrease from $62.07M in 2020 to $42.96M in 2024. The company has faced challenges in maintaining profitability, as evidenced by negative EBIT and EBITDA margins in recent years. However, there is a slight improvement in net profit margin in 2024 compared to the previous year, indicating some cost control. The declining revenue and negative margins suggest difficulties in operational efficiency.

Balance Sheet

NHTC maintains a strong equity position with a healthy equity ratio, though it has decreased from 2020. The company's debt-to-equity ratio remains low, indicating conservative leverage usage. However, the declining stockholders' equity over the years reflects potential erosion of shareholder value. Despite this, the low debt level and substantial cash reserves suggest financial stability.

Cash Flow

NHTC's cash flow situation is concerning, with consistent negative free cash flow over the years. The operating cash flow is negative, indicating challenges in generating cash from core operations. The significant negative investing cash flow in 2024 suggests high capital investments or other cash outflows. The negative free cash flow to net income ratio highlights inefficiencies in cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.96M	43.92M	49.13M	60.01M	62.07M
	Gross Profit
31.79M	32.75M	36.47M	44.99M	45.08M
	EBIT
-1.30M	-1.67M	-270.00K	1.57M	669.00K
	EBITDA
-1.30M	-1.51M	-66.00K	1.87M	1.08M
	Net Income Common Stockholders
572.00K	568.00K	313.00K	1.08M	843.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.94M	56.18M	69.67M	83.84M	92.37M
	Total Assets
55.36M	69.09M	82.82M	98.36M	105.94M
	Total Debt
2.64M	3.46M	4.12M	3.17M	3.94M
	Net Debt
-10.89M	-52.71M	-65.54M	-80.68M	-88.43M
	Total Liabilities
22.49M	27.49M	32.67M	38.87M	38.24M
	Stockholders Equity
32.87M	41.60M	50.15M	59.49M	67.70M
Cash Flow		Free Cash Flow
-3.42M	-4.32M	-5.00M	791.00K	1.67M
	Operating Cash Flow
-3.37M	-4.28M	-4.85M	1.02M	1.89M
	Investing Cash Flow
-30.07M	-46.00K	-143.00K	-225.00K	-211.00K
	Financing Cash Flow
-9.21M	-9.21M	-9.14M	-9.14M	-9.14M

Natural Health Trends Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Positive. The current price of 5.17 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.72, and below the 200-day MA of 5.60, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NHTC.

Natural Health Trends Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRN	75 Outperform	$6.13B	22.27	22.95%	―	13.13%	56.75%
NATR	74 Outperform	$262.91M	16.43	11.19%	―	1.36%	114.50%
USNA	73 Outperform	$619.25M	15.05	8.17%	―	-7.10%	-8.45%
HLF	66 Neutral	$892.56M	3.55	-31.74%	―	-1.37%	75.47%
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%
MED	55 Neutral	$154.11M	72.67	1.02%	―	-43.80%	-97.89%
NHTC	55 Neutral	$58.14M	101.41	1.54%	15.47%	-2.19%	0.60%