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Natural Health Trends (NHTC)
NASDAQ:NHTC
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Natural Health Trends
(NASDAQ:NHTC)
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Rating:50Neutral
Price Target:
$4.50
▲(1.35% Upside)
Natural Health Trends faces significant challenges with declining revenues and profitability, impacting its financial performance. The technical analysis indicates neutral momentum, while the high P/E ratio suggests overvaluation despite a strong dividend yield. The earnings call reflects a balanced sentiment with strategic initiatives in place.
Natural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.23M
Dividend Yield17.82%
Average Volume (3M)22.71K
Price to Earnings (P/E)146.9
Beta (1Y)0.20
Revenue Growth-2.07%
EPS Growth-61.05%
CountryUS
Employees133
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)<0.01
Shares Outstanding11,513,075
10 Day Avg. Volume15,054
30 Day Avg. Volume22,707
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 Upside1.35% Upside
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 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: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of challenges and strategic actions. While the company is experiencing a decline in sales and increased operating losses, it is also actively addressing these challenges through operational discipline and market expansion efforts. The announcement of a cash dividend demonstrates confidence in the company's financial health. Overall, the sentiment is balanced given the ongoing economic uncertainties and strategic initiatives.Q2-2025 Updates
Positive Updates
Incentive Programs and Market Expansion
Despite challenges, Natural Health Trends Corp. celebrated achievements with incentive trips to the Maldives and Paris and launched a new market in Colombia, which was met with strong enthusiasm.
Strong Operational Discipline
The company exercised operational discipline by focusing on expense management, inventory control, and a supply chain transition to mitigate tariff uncertainties.
Dividend Announcement
On July 28, the Board of Directors declared a cash dividend of $0.20 per share, payable on August 22 to stockholders of record as of August 12.
Negative Updates
Decline in Net Sales
Net sales for the second quarter were $9.8 million, a 6% decrease compared to the second quarter of 2024, largely due to economic uncertainty and trade tensions.
Decreased Sales in Hong Kong
Sales in Hong Kong, which constituted 82% of total sales, declined 5% year-over-year due to heightened economic uncertainty.
Increased Operating Loss
The operating loss for the quarter was $333,000 compared to $238,000 in the second quarter last year.
Reduced Cash and Equivalents
Total cash, cash equivalents, and marketable securities were reduced to $34.2 million at June 30, down from $41.9 million at March 31, mainly due to a tax installment payment and quarterly dividend payment.
Company Guidance
In the second quarter of 2025, Natural Health Trends Corp. reported net sales of $9.8 million, marking a 6% decline from the $10.5 million recorded in the same period of 2024. The company faced challenges due to economic uncertainties and trade tensions, particularly impacting sales in Hong Kong, which constituted 82% of total sales and saw a 5% year-over-year decline. Despite the decrease in sales, the gross profit margin remained relatively stable at 73.9%. Commissions expense increased slightly to 40.9% of total sales, up from 40.1% the previous year, partly due to higher commissions earned by members. Selling, general, and administrative expenses decreased by $235,000 to $3.6 million. The quarter concluded with an operating loss of $333,000 and net income of $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024. The company also reported a significant decrease in total cash, cash equivalents, and marketable securities to $34.2 million from $41.9 million at the end of March, mainly due to a $5.1 million tax installment payment related to the 2017 U.S. Tax Cuts and Jobs Act and a quarterly dividend payment. Additionally, on July 28, the Board declared a cash dividend of $0.20 per share, payable on August 22 to stockholders of record as of August 12.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
4.44
Price Trends
4.48
Positive
4.47
Positive
4.44
Positive
Market Momentum
0.01
Positive
48.24
Neutral
19.91
Positive
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 4.44 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 4.48, and below the 200-day MA of 4.44, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 is Positive, 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 |
|---|---|---|---|---|---|---|---|
57 Neutral | 35.03M | 12.23 | 18.90% | ― | -48.70% | ― | |
50 Neutral | $51.23M | 146.86 | 1.05% | 17.82% | -2.07% | -61.05% | |
50 Neutral | 83.14M | -13.12 | ― | ― | -60.59% | 63.86% | |
47 Neutral | 113.42M | -0.03 | 121.85% | ― | -7.15% | -1299.84% | |
44 Neutral | 837.54M | ― | -40.84% | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
NHTC
Natural Health Trends
4.44
-0.38
-7.88%
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13.77
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1.90
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3.58
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OCG
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4.01
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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.