Natural Health Trends (NHTC) AI Stock Analysis

• Market Cap: $28.22M
• Dividend Yield: 25.2%
• Average Volume (3M): 25.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -5.07%
• EPS Growth: -115.50%
• Country: US
• Employees: 133
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 8,577,848
• 10 Day Avg. Volume: 45,534
• 30 Day Avg. Volume: 25,920
• PEG Ratio: 0.16
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -5.86
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: -26.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $3.50 ▲(7.36% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held down primarily by weakening financial performance (TTM loss and persistent negative operating/free cash flow) and a still-weak price trend versus key moving averages. These are partially offset by a strong balance sheet with low leverage, an unusually high dividend yield, and a sizeable share repurchase that materially reduced share count and dividend burden.

Positive Factors

High Gross Margin

A ~74% gross margin is a durable structural advantage in the health/wellness direct-selling model. High gross margin cushions operating expenses, provides pricing power versus peers, and supports potential profitability recovery if revenue trends stabilize or operating costs are optimized.

Low Financial Leverage

Very low debt gives the company financial flexibility to fund working capital, share repurchases, or restructure without heavy interest burden. Conservative leverage reduces default risk and preserves strategic optionality while management addresses cash-flow and profitability weaknesses.

Major Block Share Repurchase

Retiring a large non-float block is a structural corporate-action that reduces share count, lowers recurring dividend burden, and removes perceived overhang. It improves per-share economics, leaves ~$16M repurchase capacity, and signals active capital-allocation focused on shareholder value.

Negative Factors

Negative Operating Cash Flow

Persistent operating and free cash flow deficits indicate the business is not self-funding. Over months this forces reliance on cash reserves or one-time actions, limits reinvestment in growth or marketing, and increases vulnerability to demand shocks if cash burn continues.

Revenue Decline and TTM Loss

A shrinking top line combined with recent losses signals weakening market traction or execution issues. Sustained revenue declines erode operating leverage, make margin recovery harder, and increase the risk that the company cannot restore profitability without structural changes to sales or cost base.

Eroding Equity & Negative ROE

Material declines in equity and assets plus negative ROE reflect persistent losses that erode shareholder value. Over time this can restrict access to capital, pressure strategic flexibility, and signal that current operations are destroying rather than creating shareholder wealth unless trends reverse.

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

NHTC generates revenue through a multi-tiered direct selling model, where independent distributors sell the company's products directly to consumers. The primary revenue stream comes from product sales, with distributors earning commissions based on their sales performance and the sales of their recruited downlines. NHTC also benefits from membership fees paid by distributors, which grants them access to exclusive products and training resources. Additionally, the company engages in strategic partnerships with various health and wellness organizations, enhancing its market reach and brand visibility. These factors, combined with a robust online sales platform, contribute significantly to NHTC's earnings.

Natural Health Trends Financial Statement Overview

Summary

Financials are mixed but skew weak: TTM revenue declined (~-2.7%), the company is loss-making in the TTM period, and operating/free cash flow are negative. Offsetting factors include very strong ~74% gross margin stability and low leverage (debt-to-equity ~0.05–0.08), but shrinking assets/equity and negative ROE in TTM pressure the score.

Income Statement

TTM (Trailing-Twelve-Months) revenue is down (about -2.7%) and the company is currently unprofitable (negative EBIT/EBITDA and a net loss). While gross margin remains very strong and stable around ~74% across periods, operating costs are pressuring profitability, with operating margins negative in recent years. Net income was modestly positive in 2022–2024 but has turned negative in the TTM period, highlighting a weakening earnings trajectory.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity (debt-to-equity consistently around ~0.05–0.08), which provides financial flexibility. However, equity and total assets have declined materially over the past several years, and return on equity has weakened and is negative in the TTM period, reflecting deteriorating profitability and potential erosion of shareholder value if losses persist.

Cash Flow

Cash generation is the main weak spot: operating cash flow and free cash flow are negative in the TTM period and have been negative in most recent annual periods (2022–2024). This suggests the business is not currently self-funding through operations despite previously positive cash flow in 2020–2021. The persistence of cash burn increases reliance on the balance sheet over time if conditions do not improve.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.78M	42.96M	43.92M	49.13M	60.01M
Gross Profit	29.25M	31.79M	32.75M	36.47M	44.99M
EBITDA	-458.00K	-1.17M	-1.51M	-66.00K	1.87M
Net Income	-882.00K	572.00K	568.00K	313.00K	1.08M
Balance Sheet
Total Assets	38.43M	55.36M	69.09M	82.82M	98.36M
Cash, Cash Equivalents and Short-Term Investments	28.87M	43.94M	56.18M	69.67M	83.84M
Total Debt	3.13M	2.64M	3.46M	4.12M	3.17M
Total Liabilities	15.00M	22.49M	27.49M	32.67M	38.87M
Stockholders Equity	23.43M	32.87M	41.60M	50.15M	59.49M
Cash Flow
Free Cash Flow	-6.07M	-3.42M	-4.32M	-5.00M	791.00K
Operating Cash Flow	-6.00M	-3.37M	-4.28M	-4.85M	1.02M
Investing Cash Flow	8.15M	-30.07M	-46.00K	-143.00K	-225.00K
Financing Cash Flow	-9.21M	-9.21M	-9.21M	-9.14M	-9.14M

Natural Health Trends Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.26 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 3.40, and below the 200-day MA of 3.78, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 18.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHTC.

Natural Health Trends Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NHTC	51 Neutral	$28.22M	-43.29	-0.38%	25.20%	-5.07%	-115.50%
MOGU	49 Neutral	$19.16M	16.10	-11.43%	―	-12.53%	-3.24%
TBHC	44 Neutral	$24.26M	-1.03	―	―	-10.64%	37.38%
OCG	44 Neutral	$1.21M	-0.01	-8.68%	―	-74.20%	64.28%

Natural Health Trends Corporate Events

Natural Health Trends Executes Major Block Share Repurchase

On February 17, 2026, Natural Health Trends repurchased all 2,935,227 shares of its common stock beneficially owned by the George K. Broady family trusts in a privately negotiated deal. The block, equal to about 25.5% of outstanding shares, was bought for $2.00 per share, or roughly $5.9 million in total, funded entirely from existing cash and approved by a special board committee.

The transaction, executed under the company’s $70 million share repurchase program, reduces the share count to 8,577,848 and leaves about $16 million available for future buybacks under the plan. Management highlighted that retiring this large, non-float block removes perceived stock overhang, avoids potential market disruption, cuts annual dividend obligations by about $1.2 million at the current rate and is intended to enhance value and liquidity for remaining shareholders while the long-time investor exits for personal financial reasons.

The most recent analyst rating on (NHTC) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Natural Health Trends stock, see the NHTC Stock Forecast page.