Natural Health Trends (NHTC)
NASDAQ:NHTC
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Natural Health Trends
(NASDAQ:NHTC)
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Rating:50Neutral
Price Target:
$3.00
▼(-7.98% Downside)
Action:Reiterated
Date:05/07/26
The score is held back primarily by weak financial performance—losses, multi-year sales erosion, and significant negative operating/free cash flow—despite low leverage and strong gross margins. Technicals are mildly positive in the short term, valuation is helped by a very high dividend yield but impaired by a loss-driven negative P/E, and corporate actions (major buyback) are supportive but secondary versus operating fundamentals.
Positive Factors
High gross margins
Sustained gross margins near 74% provide a durable structural buffer: high contribution per sale supports profitability if operating expenses are controlled, gives pricing power in direct‑sell channels, and allows faster recovery of net income as revenue stabilizes or grows.
Negative Factors
Negative operating cash flow
Persistent negative operating and free cash flow (TTM -$6.1M / -$6.3M) is a durable structural weakness: it erodes reserves, threatens dividend and buyback sustainability, and forces financing or severe cost cuts. Until operations generate positive cash, flexibility for growth or investments is constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 74% provide a durable structural buffer: high contribution per sale supports profitability if operating expenses are controlled, gives pricing power in direct‑sell channels, and allows faster recovery of net income as revenue stabilizes or grows.
Read all positive factors
Natural Health Trends Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Tracks each segment’s profitability after operating expenses like marketing and administration, highlighting which businesses actually contribute to the company’s bottom line and which require continued investment or restructuring. Identifies where management should allocate capital and where losses may pose a risk to overall earnings.
Tracks each segment’s profitability after operating expenses like marketing and administration, highlighting which businesses actually contribute to the company’s bottom line and which require continued investment or restructuring. Identifies where management should allocate capital and where losses may pose a risk to overall earnings.
Data provided by:
The Fly
The FlyNatural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.28M
Dividend Yield25.2%
Average Volume (3M)25.92K
Price to Earnings (P/E)―
Beta (1Y)0.46
Revenue Growth-10.54%
EPS Growth-332.20%
CountryUS
Employees133
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.10
Shares Outstanding8,577,848
10 Day Avg. Volume45,534
30 Day Avg. Volume25,920
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.52
Price to Sales (P/S)0.89
P/FCF Ratio-5.86
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit0.90
Enterprise Value/Ebitda-17.62
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 d...
How the Company Makes Money
NHTC primarily makes money by selling health and wellness products to end customers through a direct-selling (multi-level) distribution model. Revenue is generated from product sales (recognized when products are purchased through the company’s or...
Natural Health Trends Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Negative
The call presented notable operational and financial challenges: revenue declined 11% year-over-year, the company returned to a net loss, operating cash burn increased and cash reserves fell roughly 27% year-to-date. Management outlined a clear restructuring plan to achieve $1.5 million in annualized savings, has begun cost reductions (SG&A down ~6.7%), is investing in product launches and technology, and maintains a multi-month liquidity buffer of $32 million. While there are meaningful strategic responses and some positive operational actions, the magnitude of sales decline, profitability deterioration, and increased cash burn outweigh the positives in the near term.Positive Updates
Cost-Savings Restructuring Plan
Company executing a targeted restructuring expected to deliver approximately $1.5 million in annualized savings by mid-2026, including ~10% workforce optimization, lease reductions/exits, and transition of U.S. manufacturing closer to Asia to reduce tariffs and logistics costs; anticipates a one-time charge of ~$250,000 in Q4 2025.
Negative Updates
Decline in Net Sales
Net sales decreased 11% year-over-year to $9.5 million in Q3 2025 from $10.7 million in Q3 2024; orders declined 5% year-over-year.
Read all updates
Q3-2025 Updates
Positive
Negative
Cost-Savings Restructuring Plan
Company executing a targeted restructuring expected to deliver approximately $1.5 million in annualized savings by mid-2026, including ~10% workforce optimization, lease reductions/exits, and transition of U.S. manufacturing closer to Asia to reduce tariffs and logistics costs; anticipates a one-time charge of ~$250,000 in Q4 2025.
Read all positive updates
Company Guidance
Guidance: management expects to realize approximately $1.5 million in annualized cost savings by mid‑2026 through a targeted restructuring (including ~10% workforce reduction, facility lease reductions/exits and shifting U.S. manufacturing closer to Asia); they anticipate a one‑time charge of about $250,000 in Q4 and plan to reduce the quarterly cash dividend to $0.10 per share in Q1 next year (current dividend declared $0.20 per share), actions intended to offset near‑term headwinds (Q3 net sales down 11% to $9.5M, orders down 5%, Greater China/Hong Kong was 82% of sales and declined 8% or 4% excluding a promo/presale), preserve liquidity (cash, cash equivalents and marketable securities $32M at Sept 30 vs $43.9M at Dec 31), and free resources to invest in an AI‑enabled marketing app, a member interface suite and other growth initiatives while improving profitability (Q3 gross margin 73.7% vs 74.1% prior year; commissions 40.9% of sales; SG&A $3.6M; operating loss $495k; net loss $431k or $0.04 per diluted share; YTD operating cash use $5.0M, or $16k excluding a required tax installment).Natural Health Trends Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.24M | 39.78M | 42.96M | 43.92M | 49.13M | 60.01M |
| Gross Profit | 28.24M | 29.25M | 31.79M | 32.75M | 36.47M | 44.99M |
| EBITDA | -1.44M | -458.00K | -1.17M | -1.51M | -66.00K | 1.87M |
| Net Income | -1.16M | -882.00K | 572.00K | 568.00K | 313.00K | 1.08M |
Balance Sheet | ||||||
| Total Assets | 31.95M | 38.43M | 55.36M | 69.09M | 82.82M | 98.36M |
| Cash, Cash Equivalents and Short-Term Investments | 21.23M | 28.87M | 43.94M | 56.18M | 69.67M | 83.84M |
| Total Debt | 3.02M | 3.13M | 2.64M | 3.46M | 4.12M | 3.17M |
| Total Liabilities | 15.49M | 15.00M | 22.49M | 27.49M | 32.67M | 38.87M |
| Stockholders Equity | 16.46M | 23.43M | 32.87M | 41.60M | 50.15M | 59.49M |
Cash Flow | ||||||
| Free Cash Flow | -6.30M | -6.07M | -3.42M | -4.32M | -5.00M | 791.00K |
| Operating Cash Flow | -6.14M | -6.00M | -3.37M | -4.28M | -4.85M | 1.02M |
| Investing Cash Flow | 8.12M | 8.15M | -30.07M | -46.00K | -143.00K | -225.00K |
| Financing Cash Flow | -14.78M | -9.21M | -9.21M | -9.21M | -9.14M | -9.14M |
Natural Health Trends Technical Analysis
Negative
3.26
Price Trends
2.83
Negative
3.06
Negative
3.32
Negative
Market Momentum
-0.01
Positive
46.39
Neutral
21.63
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 3.26 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.83, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 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
UnderperformOutperform
Sector (61)
NHTC
Natural Health Trends
2.83
-1.15
-28.82%
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2.01
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-7.29%
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-92.05%
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1.83
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JBDI
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0.42
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Natural Health Trends Corporate Events
Executive/Board ChangesShareholder Meetings
Natural Health Trends Shareholders Approve Directors and 2026 Plan
Positive
May 7, 2026
At its annual meeting of stockholders held in Hong Kong on May 7, 2026, Natural Health Trends Corp. reported that 58.1% of the 8,577,848 shares entitled to vote were represented in person or by proxy, and stockholders elected Randall A. Mason, Chr...
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.