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Natural Health Trends Corp (NHTC)
:NHTC
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Natural Health Trends
(NASDAQ:NHTC)
Rating:48Neutral
Price Target:
$4.50
▲(3.21% Upside)
Natural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.20M
Dividend Yield18.35%
Average Volume (3M)32.56K
Price to Earnings (P/E)143.9
Beta (1Y)0.29
Revenue Growth-2.07%
EPS Growth-61.05%
CountryUS
Employees133
SectorConsumer Cyclical
Sector Strength75
IndustrySpecialty Retail
Share Statistics
EPS (TTM)<0.01
Shares Outstanding11,513,075
10 Day Avg. Volume71,713
30 Day Avg. Volume32,556
Financial Highlights & Ratios
PEG Ratio230.16
Price to Book (P/B)1.61
Price to Sales (P/S)1.23
P/FCF Ratio-15.47
Enterprise Value/Market Cap0.35
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit0.57
Enterprise Value/Ebitda-14.19
Forecast
1Y Price Target
$4.50Price Target Upside3.21% Upside
Rating ConsensusHold
Number of Analyst Covering1
Natural Health Trends Business Overview & Revenue Model
Company DescriptionNatural Health Trends Corp (NHTC) is a global direct-selling company that specializes in the development and marketing of premium wellness and personal care products. The company operates primarily in the health and wellness sector, offering a range of products that include dietary supplements, skincare, and other personal care items. NHTC's product lines are designed to promote overall health and well-being, positioning the company as a key player in the growing health-conscious consumer market.
How the Company Makes MoneyNHTC generates revenue primarily through direct sales of its products to consumers, leveraging a multi-level marketing (MLM) model that allows independent distributors to earn commissions on their sales and the sales made by their recruits. This creates a tiered income structure that incentivizes distributors to grow their networks. Key revenue streams include wholesale product sales to distributors, retail sales through the company's e-commerce platform, and potential international market expansion. Additionally, NHTC may engage in strategic partnerships and collaborations to enhance its product offerings and market presence, contributing to its overall earnings.
Natural Health Trends Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -2.02%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company facing significant challenges with declining sales and increased operating losses amid economic uncertainty and trade tensions. However, strategic initiatives like supply chain realignment and market expansion in Colombia, coupled with a steady dividend, indicate efforts to stabilize and grow the business.Q2-2025 Updates
Positive Updates
Strategic Supply Chain Realignment
Natural Health Trends is transitioning its U.S.-based supply chain to trusted manufacturing partners in Asia to mitigate tariff exposure, streamline logistics, and lower costs, thereby enhancing access to R&D resources and maintaining quality control.
Launch in Colombia
The company celebrated the official launch of its newest market, Colombia, with a well-attended grand opening event, signaling strong enthusiasm for growth across South America.
Dividend Announcement
The Board of Directors declared a cash dividend of $0.20 per share, payable on August 22, 2025, to stockholders of record as of August 12, 2025.
Negative Updates
Decrease in Net Sales
Net sales were $9.8 million, a 6% decrease compared to the second quarter of 2024, primarily due to heightened economic uncertainty and evolving trade tensions.
Operating Loss Increase
Operating loss for the quarter was $333,000 compared to $238,000 in the second quarter of 2024, indicating increased financial pressure.
Significant Cash Outflow
Net cash used in operating activities was $5.2 million during the first half of 2025 compared to $3 million in the same period a year ago, largely due to a required tax installment payment.
Company Guidance
During the second quarter of 2025, Natural Health Trends Corp. reported net sales of $9.8 million, a 6% decline from the same period in 2024. The gross profit margin remained stable at 73.9%, while commissions expenses increased to 40.9% of total sales compared to 40.1% the previous year. Selling, general, and administrative expenses decreased by $235,000 to $3.6 million. The company recorded an operating loss of $333,000, up from $238,000 last year, and net income for the quarter was $15,000, compared to $173,000 in 2024. Net cash used in operating activities was $5.2 million for the first half of 2025, and total cash, cash equivalents, and marketable securities were $34.2 million as of June 30. A dividend of $0.20 per share was declared, payable on August 22. The company is transitioning its supply chain to Asia to mitigate tariff risks, improve efficiencies, and support long-term growth, while also focusing on customer engagement and loyalty initiatives.Natural Health Trends Financial Statement Overview
Summary
Natural Health Trends faces challenges with declining revenue and negative cash flows, despite strong gross margins. The balance sheet is stable with low leverage, but declining equity and assets are concerns. Operational inefficiencies and cash flow issues need addressing.Income Statement
Natural Health Trends' revenue has been on a declining trend from $62 million in 2020 to $42.7 million in the TTM. The gross profit margin remains strong at 73.9% for TTM, but declining revenues are a concern. Net profit margin improved slightly to 1.2% in TTM; however, EBIT and EBITDA margins are negative, indicating operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows stability with a high equity ratio of 58.1% in TTM, reflecting a solid financial position. The debt-to-equity ratio is low at 0.08, indicating minimal leverage. However, stockholders' equity has decreased over time, and declining total assets may pose long-term risks.60
Neutral
Cash Flow
Free cash flow is negative, and there's a concerning trend of negative operating cash flows, which were -$3.43 million in TTM. The operating cash flow to net income ratio is negative, highlighting cash flow issues. However, free cash flow has improved slightly, showing a minor positive trajectory.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.09M | 42.96M | 43.92M | 49.13M | 60.01M | 62.07M |
| Gross Profit | 31.13M | 31.79M | 32.75M | 36.47M | 44.99M | 45.08M |
| EBITDA | -1.25M | -1.30M | -1.51M | -66.00K | 1.87M | 1.08M |
| Net Income | 348.00K | 572.00K | 568.00K | 313.00K | 1.08M | 843.00K |
Balance Sheet | ||||||
| Total Assets | 45.16M | 55.36M | 69.09M | 82.82M | 98.36M | 105.94M |
| Cash, Cash Equivalents and Short-Term Investments | 34.24M | 43.94M | 56.18M | 69.67M | 83.84M | 92.37M |
| Total Debt | 2.25M | 2.64M | 3.46M | 4.12M | 3.17M | 3.94M |
| Total Liabilities | 16.31M | 22.49M | 27.49M | 32.67M | 38.87M | 38.24M |
| Stockholders Equity | 28.86M | 32.87M | 41.60M | 50.15M | 59.49M | 67.70M |
Cash Flow | ||||||
| Free Cash Flow | -5.55M | -3.42M | -4.32M | -5.00M | 791.00K | 1.67M |
| Operating Cash Flow | -5.50M | -3.37M | -4.28M | -4.85M | 1.02M | 1.89M |
| Investing Cash Flow | 9.46M | -30.07M | -46.00K | -143.00K | -225.00K | -211.00K |
| Financing Cash Flow | -9.21M | -9.21M | -9.21M | -9.14M | -9.14M | -9.14M |
Natural Health Trends Technical Analysis
Negative
4.36
Price Trends
4.42
Negative
4.51
Negative
4.53
Negative
Market Momentum
0.03
Positive
43.20
Neutral
20.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Negative. The current price of 4.36 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.42, and below the 200-day MA of 4.53, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHTC.
Natural Health Trends Risk Analysis
Natural Health Trends disclosed 39 risk factors in its most recent earnings report. Natural Health Trends 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
Natural Health Trends Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.48B | ― | -45.59% | ― | ― | ― | |
61 Neutral | $17.23B | 11.51 | -5.97% | 3.09% | 1.47% | -15.79% | |
50 Neutral | $78.79M | ― | -5.10% | ― | -60.59% | 63.86% | |
48 Neutral | $50.20M | 143.89 | 1.05% | 18.35% | -2.07% | -61.05% | |
48 Neutral | $21.70M | 15.02 | 114.41% | ― | -58.30% | ― | |
39 Underperform | $40.67M | ― | ― | -7.15% | -1299.84% |
* Consumer Cyclical Sector Average
Performance Comparison
NHTC
Natural Health Trends
4.31
-1.57
-26.70%
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OCG
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3.56
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Natural Health Trends Corporate Events
Executive/Board ChangesShareholder Meetings
Natural Health Trends Holds Annual Stockholders Meeting
Neutral
May 6, 2025
On May 6, 2025, Natural Health Trends held its annual meeting of stockholders in Rowland Heights, California, with 72.9% of shares represented. During the meeting, Yiu T. Chan, Randall A. Mason, Lucy N. Nduati, Chris T. Sharng, and Ching C. Wong were elected as directors, and the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.
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.