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Nu Skin Enterprises (NUS)
NYSE:NUS
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Nu Skin
(NYSE:NUS)63Neutral
Positive Factors
Cost Management
Cost savings initiatives, accelerated SKU rationalization plan, and promo/discount management are viewed positively.
Innovation
NUS is working to stimulate its core business with innovation and refreshed business models in select markets.
Negative Factors
Guidance and Performance
The company lowered 2024 net sales and EPS guidance citing pressure across the P&L from tough macros, greater FX headwinds, negative mix on GM, increased selling expense, and higher taxes.
Market Conditions
The stock is down about 40% since reporting 2Q’24 results, reflecting weaker macroeconomic conditions and removal from the S&P 600 index.
Sales Outlook
The 3Q’24/2024 CC sales outlook has worsened as macros and beauty category trends have softened.
Nu Skin (NUS) vs. S&P 500 (SPY)
Market Cap
$380.88M
Dividend Yield3.13%
Average Volume (3M)740.24K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-12.04%
EPS Growth-1796.38%
CountryUS
Employees3,100
SectorConsumer Cyclical
Sector Strength53
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)-2.95
Shares Outstanding49,722,780
10 Day Avg. Volume798,499
30 Day Avg. Volume740,243
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)3.70
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.25Price Target Upside-11.15% Downside
Rating ConsensusHold
Number of Analyst Covering2
Nu Skin Business Overview & Revenue Model
Company DescriptionNu Skin Enterprises, Inc. develops and distributes personal care products and nutritional supplements. The firm engages in the provision of beauty and wellness products and solutions. Its brands include Nu Skin and Pharmanex. The company was founded by Blake M. Roney, Sandra N. Tillotson, and Steven J. Lund in 1984 and is headquartered in Provo, UT.
How the Company Makes MoneyNu Skin generates revenue primarily through the direct sales of its beauty and wellness products via a network marketing model. Independent distributors, known as Brand Affiliates, purchase products at wholesale prices and sell them at retail prices, earning commissions based on sales volume. The company also implements various incentive programs to encourage sales growth and distributor recruitment. In addition to distributor sales, Nu Skin's revenue streams include retail sales through its online platform and partnerships with third-party sellers. Key factors contributing to its earnings include continuous product innovation, expansion into new markets, and strategic global partnerships that enhance brand visibility and market reach.
Nu Skin Financial Statement Overview
Summary
Nu Skin is facing financial headwinds with declining revenues and profitability challenges, as evident from negative net income and EBIT. The balance sheet indicates moderate leverage but declining equity. Cash flows remain a strength, supporting operational resilience despite profitability pressures.Income Statement
Nu Skin's revenue has seen a decline over the years, with a significant drop in the latest year, indicating negative growth trends. The gross profit margin is healthy, but the company experienced a negative EBIT and net profit margin, highlighting operational challenges and reduced profitability.55
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the decreasing equity ratio signals declining financial stability. Return on equity has turned negative due to recent losses, indicating challenges in generating returns for shareholders.60
Neutral
Cash Flow
Operating cash flow remains positive, indicating good cash generation from core activities. However, free cash flow growth is inconsistent, with a recent decline. The cash flow to net income ratios are favorable, suggesting efficient cash conversion despite current profitability issues.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.73B | 1.97B | 2.23B | 2.70B | 2.58B | Gross Profit |
| 1.18B | 1.36B | 1.59B | 2.02B | 1.92B | EBIT |
| -151.59M | 48.27M | 110.85M | 233.99M | 257.56M | EBITDA |
| -151.59M | 138.98M | 231.85M | 368.48M | 331.56M | Net Income Common Stockholders |
| -146.59M | 8.60M | 104.78M | 147.27M | 191.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 197.99M | 267.82M | 278.51M | 354.81M | 423.90M | Total Assets |
| 1.47B | 1.81B | 1.82B | 1.91B | 1.96B | Total Debt |
| 452.05M | 607.33M | 479.01M | 465.04M | 500.38M | Net Debt |
| 265.17M | 351.27M | 214.28M | 125.45M | 97.69M | Total Liabilities |
| 817.46M | 984.50M | 923.67M | 993.71M | 1.06B | Stockholders Equity |
| 651.46M | 821.97M | 897.30M | 912.77M | 894.27M |
| Cash Flow | Free Cash Flow | |||
| 70.16M | 60.15M | 49.01M | 72.97M | 315.32M | Operating Cash Flow |
| 111.74M | 118.64M | 108.06M | 141.58M | 379.14M | Investing Cash Flow |
| -37.96M | -134.50M | -67.08M | -88.73M | -79.43M | Financing Cash Flow |
| -133.18M | 10.73M | -99.50M | -104.70M | -245.17M |
Nu Skin Technical Analysis
Positive
8.16
Price Trends
6.97
Positive
6.91
Positive
8.44
Negative
Market Momentum
0.31
Negative
64.27
Neutral
57.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUS, the sentiment is Positive. The current price of 8.16 is above the 20-day moving average (MA) of 7.26, above the 50-day MA of 6.97, and below the 200-day MA of 8.44, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUS.
Nu Skin Risk Analysis
Nu Skin disclosed 11 risk factors in its most recent earnings report. Nu Skin 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
Nu Skin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.12B | 23.52 | 20.46% | ― | 13.13% | 56.75% | |
74 Outperform | $265.12M | 16.11 | 11.19% | ― | 1.36% | 114.50% | |
73 Outperform | $564.16M | 14.09 | 8.17% | ― | -7.10% | -8.45% | |
63 Neutral | $380.88M | ― | -22.50% | 3.13% | -12.04% | -1796.38% | |
61 Neutral | $822.73M | 3.46 | -31.74% | ― | -1.37% | 75.47% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
55 Neutral | $155.65M | 75.21 | 1.00% | ― | -43.80% | -97.89% |
* Consumer Cyclical Sector Average
Performance Comparison
NUS
Nu Skin
8.16
-4.32
-34.62%
HLF
Herbalife
8.64
0.33
3.97%
LRN
Stride
140.86
80.18
132.14%
MED
Medifast
14.09
-23.95
-62.96%
NATR
Nature's Sunshine Products
14.23
-3.39
-19.24%
USNA
USANA Health
30.87
-16.71
-35.12%
Nu Skin Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 28.10% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive achievements and ongoing challenges. Nu Skin has shown strong performance in developing markets, debt reduction, and operational efficiency improvements. However, persistent challenges in China and South Korea, combined with currency impacts and portfolio write-downs, present significant hurdles.Highlights
Above-Guidance Revenue and EPS
Fourth quarter revenue came in at $445.6 million, exceeding guidance despite a 4% negative foreign currency impact. Adjusted earnings per share surpassed guidance at $0.38.
Significant Debt Reduction
Nu Skin reduced its debt by $110 million funded entirely through cash operations, and further reduced debt by $115 million with proceeds from the sale of Mavely.
Strong Performance in Developing Markets
Encouraging growth in Latin America and Southeast Asia with a 28% year-on-year growth in the RISE segment.
Successful Strategic Transaction
Sold Mavely for $250 million, generating a five times return on investment and strengthening the balance sheet.
Operational Efficiency Improvements
Adjusted operating margin for Q4 was 7.7%, an improvement of 130 basis points from the prior year.
Lowlights
Challenges in China and South Korea
Persistent headwinds remain in China and South Korea, impacting overall revenue expectations.
Portfolio Write-Down
A $38.8 million write-down due to aggressive portfolio reduction efforts.
Foreign Currency Impact
An unexpected additional FX headwind of approximately $60 million for the full year, with a projected $52.5 million impact for 2025.
Declining Consumer Sentiment
Broader declining consumer sentiment in critical markets like China and South Korea affecting premium beauty and personal care categories.
Company Guidance
During the fourth quarter of 2024, Nu Skin Enterprises reported revenue of $445.6 million, surpassing their guidance range, despite a 4% negative impact from foreign currency, amounting to $20.1 million. The adjusted earnings per share (EPS) was $0.38, slightly exceeding the prior year's $0.37. For the full year, the revenue reached $1.73 billion, aligning with the original guidance despite an unexpected FX headwind of approximately $60 million. The company's adjusted gross margin for Q4 was 71.4%, with their core Nu Skin business achieving a gross margin of 76.6%. Operational efficiency was highlighted with an improved adjusted operating margin of 7.7%, up from 6.4% in the previous year, and a significant debt reduction of $110 million. Looking ahead to 2025, Nu Skin projected revenue between $1.48 billion and $1.62 billion, with an EPS range of $3.45 to $3.85, reflecting strong growth driven by operational efficiency initiatives. Key strategic priorities for 2025 include strengthening the Nu Skin core business, accelerating innovation in their IO platform including RISE, and improving operational efficiency globally.Nu Skin Corporate Events
M&A TransactionsBusiness Operations and Strategy
Nu Skin Sells Mavely Platform to Later for $250M
Positive
Jan 3, 2025
Nu Skin Enterprises announced the sale of its Mavely affiliate marketing technology platform to Later for approximately $250 million, including cash and a minority equity stake. The transaction is expected to enhance Nu Skin’s capabilities in its affiliate marketing business and provide capital for innovation and debt repayment, yielding a five-times return on investment in Mavely since 2021.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.