Natural Health Trends (NHTC) AI Stock Analysis

• Market Cap: $53.19M
• Dividend Yield: 17.47%
• Average Volume (3M): 16.73K
• Price to Earnings (P/E): 104.8
• Beta (1Y): 0.29
• Revenue Growth: -0.62%
• EPS Growth: 1.15%
• Country: US
• Employees: 133
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 0.01
• Shares Outstanding: 11,513,075
• 10 Day Avg. Volume: 15,357
• 30 Day Avg. Volume: 16,726
• PEG Ratio: -8.15
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.18
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: -7.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $4.50 ▼(-2.60%Downside)

The overall stock score of 51 reflects the company's strong gross margins and attractive dividend yield, offset by declining revenues, negative cash flows, and a high P/E ratio. The neutral sentiment from the earnings call and bearish technical indicators further contribute to a cautious outlook.

Natural Health Trends Business Overview & Revenue Model

Company Description

Natural 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 Money

Natural 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 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. Improvements in operational efficiencies and cash flow are necessary for better financial health.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.75M	42.96M	43.92M	49.13M	60.01M	62.07M
Gross Profit	31.62M	31.79M	32.75M	36.47M	44.99M	45.08M
EBITDA	-1.18M	-1.30M	-1.51M	-66.00K	1.87M	1.08M
Net Income	506.00K	572.00K	568.00K	313.00K	1.08M	843.00K
Balance Sheet
Total Assets	69.09M	55.36M	69.09M	82.82M	98.36M	105.94M
Cash, Cash Equivalents and Short-Term Investments	56.18M	43.94M	56.18M	69.67M	83.84M	92.37M
Total Debt	3.46M	2.64M	3.46M	4.12M	3.17M	3.94M
Total Liabilities	27.49M	22.49M	27.49M	32.67M	38.87M	38.24M
Stockholders Equity	41.60M	32.87M	41.60M	50.15M	59.49M	67.70M
Cash Flow
Free Cash Flow	-3.49M	-3.42M	-4.32M	-5.00M	791.00K	1.67M
Operating Cash Flow	-3.43M	-3.37M	-4.28M	-4.85M	1.02M	1.89M
Investing Cash Flow	8.42M	-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

• Technical Analysis Sentiment: Neutral
• Last Price: 4.62
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 4.62 is above the 20-day moving average (MA) of 4.55, below the 50-day MA of 4.67, and below the 200-day MA of 4.83, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NHTC.

Natural Health Trends Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
NEGG	57 Neutral	$321.79M	―	-45.59%	―	―	―
NHTC	51 Neutral	$53.19M	104.76	1.44%	17.47%	-0.62%	1.15%
OCG	50 Neutral	$126.14M	―	-5.10%	―	-21.59%	-0.32%
LITB	43 Neutral	$22.43M	15.44	114.41%	―	-58.19%	―
QVCGA	43 Neutral	$29.97M	―		―	-7.66%	-735.19%
MI		$10.54M	0.74		―	―	―

Natural Health Trends Corporate Events

Natural Health Trends Holds Annual Stockholders Meeting

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.