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Natural Health Trends (NHTC)
NASDAQ:NHTC
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Natural Health Trends
(NASDAQ:NHTC)
Rating:52Neutral
Price Target:
$4.50
▼(-1.96%Downside)
Natural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.85M
Dividend Yield17.43%
Average Volume (3M)13.61K
Price to Earnings (P/E)104.1
Beta (1Y)0.26
Revenue Growth-0.62%
EPS Growth1.15%
CountryUS
Employees133
SectorConsumer Cyclical
Sector Strength71
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.01
Shares Outstanding11,513,075
10 Day Avg. Volume13,201
30 Day Avg. Volume13,614
Financial Highlights & Ratios
PEG Ratio-7.86
Price to Book (P/B)1.65
Price to Sales (P/S)0.00
P/FCF Ratio-14.63
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.02
Enterprise Value/Ebitda-7.39
Forecast
1Y Price Target
$4.50Price Target Upside-1.96% Downside
Rating ConsensusHold
Number of Analyst Covering0
Natural Health Trends Business Overview & Revenue Model
Company DescriptionNatural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted, and powder dietary and nutritional supplements, as well as vitamins and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements. In addition, the company offers home appliances; daily products, such as oral care, hair care, and body care; and home appliances products. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, Vietnam, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.
How the Company Makes MoneyNatural Health Trends generates revenue primarily through direct sales and e-commerce channels, leveraging a network marketing model. The company relies on a global network of independent distributors who sell its products directly to consumers, earning commissions on their sales. This multi-level marketing approach allows NHTC to expand its market reach without the need for traditional retail storefronts. Revenue is further supported by the recruitment of new distributors, who purchase starter kits and inventory to begin selling. Additionally, NHTC benefits from various incentive programs and promotional strategies designed to encourage sales and distributor engagement. Significant revenue contributions come from key markets, particularly in Asia, where demand for health and wellness products is robust. Strategic partnerships with suppliers and logistics providers also play a role in the company's operational efficiency and cost management.
Natural Health Trends Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -3.16%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as new product launches and expansion into Colombia, against a backdrop of challenges like revenue and membership declines. While the company is taking strategic actions to address these challenges, the balance of good and bad news results in a neutral sentiment.Q1-2025 Updates
Positive Updates
Sequential Order Increase
Orders taken increased by 9% over the fourth quarter of 2024, demonstrating sustained interest in products.
New Product Launch Success
Introduction of Twin Slim Coffee and Twin Slim Tomato Soup received strong feedback from customers and field leaders.
Incentive Trip to Paris
Hosted nearly 200 qualifiers on an incentive trip to Paris, enhancing team camaraderie.
Expansion in Colombia
Opened a new office in Bogotá, Colombia, serving as a central hub for the newest market.
Gross Profit Margin Increase
Gross profit margin increased slightly to 73.6% from 73.4% in the first quarter last year.
Dividend Announcement
Declared a quarterly cash dividend of $0.20 per share, payable on May 23.
Negative Updates
Revenue Decline
Revenue decreased by 2% to $10.7 million compared to $11 million in the first quarter of 2024.
Active Member Base Decline
Active member base decreased to 30,180 from 30,870 at December 31, a 5% decline from March 31 last year.
Operating Loss
Operating loss for the quarter was $345,000 compared to $365,000 in the first quarter last year.
Net Income Decline
Net income for the first quarter was $122,000 or $0.01 per diluted share, down from $188,000 or $0.02 per diluted share in the first quarter of 2024.
Cash and Marketable Securities Decrease
Total cash, cash equivalents, and marketable securities decreased to $41.9 million from $43.9 million at December 31, 2024.
Company Guidance
During the first quarter of 2025, Natural Health Trends reported revenue of $10.7 million, a 2% decrease compared to the same period in 2024, attributed to adjustments in their incentive calendars. Despite this, the company saw a 9% increase in orders from the fourth quarter of 2024. The active member base decreased slightly to 30,180 from 30,870 at the end of 2024, marking a 5% decline year-over-year. Gross profit margin rose slightly to 73.6% from 73.4% in the previous year. Commissions expense increased to 41.8% of total revenue from 41% due to higher member commissions. Selling, general, and administrative expenses were reduced by $156,000 to $3.8 million, resulting in an operating loss of $345,000, improved from a $365,000 loss last year. Net income was $122,000, or $0.01 per diluted share, down from $188,000, or $0.02 per diluted share. Cash and marketable securities totaled $41.9 million at the end of March, reflecting a decrease due to dividend payments, with another quarterly dividend of $0.20 per share declared for May. The company is prioritizing supply chain optimization in response to international trade changes.Natural Health Trends Financial Statement Overview
Summary
Natural Health Trends faces significant challenges with declining revenue, negative cash flows, and operational inefficiencies. Despite a strong gross margin and stable balance sheet with low leverage, the company's financial health is compromised by decreasing equity and assets.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 | 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 |
| EBITDA | -1.30M | -1.51M | -66.00K | 1.87M | 1.08M |
| Net Income | 572.00K | 568.00K | 313.00K | 1.08M | 843.00K |
Balance Sheet | |||||
| Total Assets | 55.36M | 69.09M | 82.82M | 98.36M | 105.94M |
| Cash, Cash Equivalents and Short-Term Investments | 43.94M | 56.18M | 69.67M | 83.84M | 92.37M |
| Total Debt | 2.64M | 3.46M | 4.12M | 3.17M | 3.94M |
| 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
Neutral
4.59
Price Trends
4.61
Negative
4.72
Negative
4.75
Negative
Market Momentum
>-0.01
Negative
52.02
Neutral
69.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Neutral. The current price of 4.59 is above the 20-day moving average (MA) of 4.53, below the 50-day MA of 4.61, and below the 200-day MA of 4.75, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 69.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | €8.48B | 14.73 | 8.46% | 3.25% | 4.05% | -25.38% | |
54 Neutral | $595.66M | ― | -45.59% | ― | ― | ― | |
52 Neutral | $52.85M | 104.08 | 1.44% | 17.43% | -0.62% | 1.15% | |
50 Neutral | $25.01M | 17.24 | 114.41% | ― | -58.30% | ― | |
42 Neutral | $31.11M | ― | ― | -7.66% | -735.19% | ||
| ― | $15.45M | 1.08 | ― | ― | ― | ||
50 Neutral | $113.28M | ― | -5.10% | ― | -21.59% | -0.32% |
* Consumer Cyclical Sector Average
Performance Comparison
NHTC
Natural Health Trends
4.59
-1.51
-24.75%
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1.31
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3.05
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OCG
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5.46
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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.