Nu Skin (NUS) AI Stock Analysis

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Nu Skin

(NYSE:NUS)

Rating:54Neutral

Price Target:

$9.00

▲(13.49%Upside)

Nu Skin's overall stock score is driven by significant financial challenges, including declining revenues and profitability. However, positive developments in the earnings call, such as debt reduction and strategic initiatives, provide a potential pathway for recovery. The absence of clear technical signals and a negative P/E ratio further weigh on the score.

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. SPDR S&P 500 ETF (SPY)

Market Cap

$391.85M

Dividend Yield3.03%

Average Volume (3M)599.24K

Price to Earnings (P/E)―

Beta (1Y)0.83

Revenue Growth-11.85%

EPS Growth-1080.00%

CountryUS

Employees3,100

SectorConsumer Cyclical

Sector Strength62

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.23

Shares Outstanding49,412,994

10 Day Avg. Volume603,611

30 Day Avg. Volume599,244

Financial Highlights & Ratios

PEG Ratio-0.15

Price to Book (P/B)0.57

Price to Sales (P/S)0.00

P/FCF Ratio6.47

Enterprise Value/Market Cap1.34

Enterprise Value/Revenue0.07

Enterprise Value/Gross Profit0.46

Enterprise Value/Ebitda-5.79

Forecast

1Y Price Target

$7.50

Price Target Upside-5.42% Downside

Rating ConsensusHold

Number of Analyst Covering0

Nu Skin Business Overview & Revenue Model

Company DescriptionNu Skin Enterprises, Inc. develops and distributes beauty and wellness products worldwide. It provides skin care systems, including ageLOC Spa systems, ageLOC Transformation anti-aging skin care systems, and ageLOC LumiSpa skin treatment and cleansing devices; and ageLOC Boost, as well as a range of other cosmetic and personal care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, LifePak nutritional supplements, ageLOC Meta nutritional supplements, and Beauty Focus Collagen+ skin care supplements, as well as other weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates retail stores and service centers in Mainland China. It sells its products under the Nu Skin, Pharmanex, and ageLOC brands. The company promotes and sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

How the Company Makes MoneyNu Skin generates revenue primarily through the sale of its personal care and wellness products via a direct selling model. The company's independent distributors purchase products at wholesale prices and sell them at retail prices, earning a profit from the difference. Additionally, distributors can recruit others to join the network, earning commissions and bonuses based on their recruits' sales, which creates a multi-tiered revenue structure. This business model enables Nu Skin to expand its market reach without incurring the costs associated with traditional retail operations. The company also invests in research and development to innovate and improve its product offerings, thereby maintaining consumer interest and driving sales. Strategic partnerships and a strong focus on high-demand markets such as skincare and nutrition further bolster Nu Skin's revenue streams.

Nu Skin Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 29.58%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with significant achievements in revenue growth, debt reduction, and innovative product launches, countered by challenges in North America, gross margin decline, and potential macroeconomic headwinds.

Q1-2025 Updates

Positive Updates

Revenue and Earnings at High End of Guidance

First quarter revenue reached $364.5 million at the high end of guidance, despite a 3% negative foreign currency impact. Adjusted earnings per share surpassed expectations at $0.23, a significant improvement from the previous year's $0.09.

Significant Growth in Latin America

The developing market strategy led to a 144% year-on-year growth in Latin America, contributing to improved profitability.

Debt Reduction and Strong Cash Position

The company reduced outstanding debt by $155 million, achieving the lowest debt level in over 10 years, and ended the quarter with $204 million in cash.

Introduction of Prysm iO

Nu Skin plans to launch Prysm iO, an intelligent wellness platform, leveraging AI and a large antioxidant database to enhance customer relationships and product recommendations.

Operational Efficiency Improvements

Operating margin improved to 6.4% from the previous year's 3.8%, with ongoing efforts to optimize expenses and enhance profitability.

Expansion into India

Nu Skin plans to enter the Indian market with locally manufactured products and a tailored sales compensation plan, targeting long-term growth opportunities.

Negative Updates

Challenges in North America

The U.S. and Canada faced increasing macroeconomic pressures, affecting business performance in these regions.

Gross Margin Decline

The gross margin decreased to 67.8% from 70.5% the prior year, primarily due to revenue mix changes and macroeconomic pressures.

Headwinds in Indonesia

Indonesia reported additional challenges during the quarter, impacting overall performance in Southeast Asia Pacific.

Potential Impact of Tariffs

There is ongoing uncertainty regarding the impact of tariffs on inflation and consumer sentiment, which could affect demand for premium products.

Company Guidance

During the Q1 2025 earnings call, Nu Skin Enterprises reported revenue at the high end of their guidance range, totaling $364.5 million, despite a 3% negative foreign currency impact. The company exceeded expectations for adjusted earnings per share, which came in at $0.23, surpassing the prior year's $0.09. Gross margin was reported at 67.8%, with the core Nu Skin business achieving a margin of 76.7%. Selling expenses were at 32.5% of revenue, reflecting a decline compared to the previous year, while general and administrative expenses improved to 28.9% of revenue. The company reduced its debt by $155 million, bringing it to the lowest level in over a decade at $239 million, and ended the quarter with $204 million in cash. Looking forward, Nu Skin anticipates second-quarter revenue between $355 million and $390 million and earnings per share in the range of $0.20 to $0.30. The company continues to focus on strengthening its core business, accelerating innovation, and improving operational efficiency amid macroeconomic challenges.

Nu Skin Financial Statement Overview

Summary

Nu Skin is facing financial challenges with declining revenue and profitability as reflected in the negative net income and deteriorating net profit margin. However, the company maintains a stable gross margin and positive cash flow, indicating potential for recovery with improved operational efficiency.

Income Statement

Neutral

Nu Skin has experienced declining revenue and profitability over the recent periods. The TTM revenue is down from previous years, and net income has turned negative. Gross profit margin remains relatively stable, but the net profit margin has deteriorated due to negative EBIT and EBITDA. The company needs to address its operational inefficiencies to return to profitability.

Balance Sheet

Neutral

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the decline in stockholders' equity and total assets is concerning. Return on equity has turned negative, reflecting poor profitability. The equity ratio remains stable, suggesting a decent level of financial stability despite recent challenges.

Cash Flow

Neutral

Nu Skin's cash flow situation is relatively stable, with positive free cash flow and operating cash flow. However, the growth in free cash flow is limited, and the company has faced challenges in translating its cash flow into net income. Continued positive cash flow is a positive sign, but improvements in profitability are needed for long-term stability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.68B	1.73B	1.97B	2.23B	2.70B	2.58B
	Gross Profit
1.13B	1.18B	1.36B	1.59B	2.02B	1.92B
	EBIT
-20.96M	-151.59M	48.27M	110.85M	233.99M	257.56M
	EBITDA
46.40M	-78.83M	138.98M	231.85M	368.48M	331.56M
	Net Income Common Stockholders
-38.55M	-146.59M	8.60M	104.78M	147.27M	191.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
203.77M	197.99M	267.82M	278.51M	354.81M	423.90M
	Total Assets
1.39B	1.47B	1.81B	1.82B	1.91B	1.96B
	Total Debt
300.71M	478.23M	607.33M	479.01M	465.04M	500.38M
	Net Debt
96.94M	291.34M	351.27M	214.28M	125.45M	97.69M
	Total Liabilities
637.44M	817.46M	984.50M	923.67M	993.71M	1.06B
	Stockholders Equity
753.97M	651.46M	821.97M	897.30M	912.77M	894.27M
Cash Flow		Free Cash Flow
65.93M	70.16M	60.15M	49.01M	72.97M	315.32M
	Operating Cash Flow
108.81M	111.74M	118.64M	108.06M	141.58M	379.14M
	Investing Cash Flow
152.84M	-37.96M	-134.50M	-67.08M	-88.73M	-79.43M
	Financing Cash Flow
-267.52M	-133.18M	10.73M	-99.50M	-104.70M	-245.17M

Nu Skin Technical Analysis

Technical Analysis Sentiment

Positive

Last Price7.93

Price Trends

50DMA

6.74

Positive

100DMA

6.99

Positive

200DMA

7.03

Positive

Market Momentum

MACD

0.39

Negative

RSI

59.24

Neutral

STOCH

38.24

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 7.93 is above the 20-day moving average (MA) of 7.61, above the 50-day MA of 6.74, and above the 200-day MA of 7.03, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 38.24 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 1 New Risks

Challenges to the form of our network marketing system or to our business practices have harmed and could continue to harm our business. Q4, 2024

Nu Skin Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIMS	77 Outperform	$12.61B	81.99	36.79%	―	85.99%	―
SGI	77 Outperform	$13.65B	42.01	17.92%	0.85%	8.96%	-22.99%
HELE	64 Neutral	$642.16M	5.18	7.45%	―	-4.93%	-23.61%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
COTY	59 Neutral	$4.38B	40.12	-10.58%	―	-1.68%	-302.11%
SKIN	56 Neutral	$201.62M	―	-70.44%	―	-17.97%	49.13%
NUS	54 Neutral	$391.85M	―	-4.93%	3.03%	-11.85%	-1080.00%

* Consumer Cyclical Sector Average

Performance Comparison

NUS

Nu Skin

7.93

-4.94

-38.38%

HELE

Helen Of Troy

27.99

-71.53

-71.88%

SGI

Somnigroup International

65.45

17.07

35.28%

COTY

Coty

5.02

-4.82

-48.98%

HIMS

Hims & Hers Health

56.33

34.71

160.55%

SKIN

Beauty Health

1.60

-0.26

-13.98%

Nu Skin Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

Nu Skin Approves 2024 Incentive Plan at Annual Meeting

Positive

May 30, 2025

On May 29, 2025, Nu Skin Enterprises held its Annual Meeting of Stockholders, where the stockholders approved the Amended and Restated 2024 Omnibus Incentive Plan. This plan increases the share authorization by 790,000 shares, clarifies the vesting of performance cash awards, and extends the termination date to May 29, 2035. Additionally, the meeting saw the election of nine directors, advisory approval of executive compensation, and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. These decisions are expected to impact Nu Skin’s operational strategies and governance structure positively.

The most recent analyst rating on (NUS) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Nu Skin stock, see the NUS Stock Forecast page.

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.