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USANA Health (USNA)
NYSE:USNA
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USANA Health
(NYSE:USNA)73Outperform
USANA Health (USNA) vs. S&P 500 (SPY)
Market Cap
$564.16M
Dividend YieldN/A
Average Volume (3M)199.98K
Price to Earnings (P/E)14.1
Beta (1Y)0.97
Revenue Growth-7.10%
EPS Growth-8.45%
CountryUS
Employees1,800
SectorHealthcare
Sector Strength74
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)2.19
Shares Outstanding19,059,572
10 Day Avg. Volume315,528
30 Day Avg. Volume199,977
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.65
Price to Cash Flow (P/CF)4.80
P/FCF Ratio5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.50Price Target Upside63.59% Upside
Rating ConsensusHold
Number of Analyst Covering2
USANA Health Business Overview & Revenue Model
Company DescriptionUSANA Health Sciences, Inc. (USNA) is a global direct selling company that develops and manufactures high-quality nutritional and personal care products. Operating primarily in the health and wellness sector, USANA offers a wide range of supplements, weight management products, skincare, and other health-related merchandise. The company is committed to providing scientifically-backed products aimed at improving and maintaining health, with a focus on cellular nutrition.
How the Company Makes MoneyUSANA Health Sciences generates revenue primarily through the sale of its nutritional and personal care products via a direct selling model. This involves independent distributors, known as 'Associates,' who purchase USANA products at wholesale prices and sell them at retail prices to consumers, earning a margin on each sale. Additionally, Associates can recruit new members to build a network, earning commissions based on the sales volume of their team. The company also sells products directly to consumers through its Preferred Customer program, which offers discounted prices. USANA's earnings are significantly influenced by its ability to expand its network of Associates and Preferred Customers, as well as maintaining product quality and innovation. Key markets include the United States, Greater China, and other international regions, with strategic investments in research and development enhancing its competitive edge.
USANA Health Financial Statement Overview
Summary
USANA Health's financial performance demonstrates solid profitability with strong operational margins and cash flow, despite declining revenues and net margins. The robust balance sheet, characterized by zero debt and high equity ratio, offers financial stability and flexibility.Income Statement
USANA Health's TTM revenue of $861.97M reflects a decline from the previous year. The gross profit margin stands at 80.4%, indicating strong profitability in core operations. However, the net profit margin has decreased to 6.3% compared to the previous year, suggesting increased expenses or pricing pressures. Despite the decline in total revenue, operational efficiency remains sound with an EBIT margin of 9.6% and an EBITDA margin of 12.9%.75
Positive
Balance Sheet
The company maintains a robust balance sheet, with a strong equity position and no current debt, resulting in a debt-to-equity ratio of 0. This indicates low financial leverage and high financial stability. With a return on equity of 10.2%, the company is generating decent returns for shareholders. The equity ratio of 79.4% underscores a solid equity base relative to total assets.80
Positive
Cash Flow
USANA Health demonstrates solid cash flow management, with a free cash flow growth rate of 16.9% in the TTM. The operating cash flow to net income ratio of 1.5 indicates strong cash generation relative to earnings. Additionally, the free cash flow to net income ratio is 1.2, reflecting effective conversion of earnings into free cash flow.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 861.97M | 921.01M | 998.60M | 1.19B | 1.13B | 1.06B | Gross Profit |
| 693.18M | 744.32M | 804.71M | 968.57M | 925.53M | 873.40M | EBIT |
| 82.33M | 93.07M | 107.61M | 170.19M | 176.49M | 146.19M | EBITDA |
| 111.63M | 123.11M | 130.22M | 192.89M | 200.96M | 146.19M | Net Income Common Stockholders |
| 54.34M | 63.79M | 69.35M | 116.50M | 124.66M | 100.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 328.34M | 330.42M | 288.42M | 239.83M | 311.92M | 234.83M | Total Assets |
| 629.27M | 632.76M | 596.55M | 577.74M | 640.89M | 516.93M | Total Debt |
| 1.32M | 13.21M | 6.89M | 7.08M | 8.62M | 8.32M | Net Debt |
| -327.02M | -317.21M | -281.53M | -232.75M | -303.30M | -226.51M | Total Liabilities |
| 129.29M | 135.56M | 162.08M | 182.62M | 199.24M | 165.22M | Stockholders Equity |
| 499.99M | 497.20M | 434.47M | 395.12M | 441.65M | 351.71M |
| Cash Flow | Free Cash Flow | ||||
| 65.64M | 56.15M | 93.50M | 108.46M | 145.31M | 110.16M | Operating Cash Flow |
| 81.23M | 70.64M | 103.90M | 121.23M | 160.40M | 126.73M | Investing Cash Flow |
| -15.27M | -11.97M | -12.37M | -14.19M | -33.96M | 47.49M | Financing Cash Flow |
| -12.72M | -14.24M | -30.09M | -181.41M | -59.44M | -152.05M |
USANA Health Technical Analysis
Negative
30.87
Price Trends
33.12
Negative
35.51
Negative
39.03
Negative
Market Momentum
-0.84
Positive
45.96
Neutral
28.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USNA, the sentiment is Negative. The current price of 30.87 is below the 20-day moving average (MA) of 31.10, below the 50-day MA of 33.12, and below the 200-day MA of 39.03, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USNA.
USANA Health Risk Analysis
USANA Health disclosed 40 risk factors in its most recent earnings report. USANA Health 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
USANA Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $265.12M | 16.11 | 11.19% | ― | 1.36% | 114.50% | |
74 Outperform | $202.08M | 28.49 | 25.67% | 0.96% | 0.57% | 155.00% | |
73 Outperform | $564.16M | 14.09 | 8.17% | ― | -7.10% | -8.45% | |
66 Neutral | $822.73M | 3.46 | -31.74% | ― | -1.37% | 75.47% | |
55 Neutral | $155.65M | 74.47 | 1.02% | ― | -43.80% | -97.89% | |
55 Neutral | $59.06M | 103.01 | 1.54% | 15.65% | -2.19% | 0.60% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
USNA
USANA Health
30.87
-17.69
-36.43%
HLF
Herbalife
8.64
0.02
0.23%
MED
Medifast
14.09
-24.00
-63.01%
NATR
Nature's Sunshine Products
14.23
-3.68
-20.55%
LFVN
LifeVantage
16.17
9.37
137.79%
NHTC
Natural Health Trends
5.05
-0.39
-7.17%
USANA Health Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -3.41% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth in key markets, a strategic acquisition positioning USANA as a leader in children's wellness, and optimistic plans for 2025 with numerous product launches. However, there were challenges noted in China, increased expenses, and limited immediate impact from newer markets like India.Highlights
Solid Fourth Quarter Results
Net sales grew 7% sequentially, and adjusted diluted EPS increased 14%. Notably strong performance in the United States where net sales grew 16% sequentially, as well as in Australia and New Zealand with a 9% year-over-year increase.
Strategic Acquisition of Hyatt
USANA acquired a 78.8% ownership stake in Hyatt for $405 million, positioning itself as a leader in the children's health and wellness market. Hyatt generated $112 million in revenue with an adjusted EBITDA margin over 20% in fiscal 2024.
Exciting Outlook for 2025
Plans for over 20 product launches and reformulations globally. Strategic enhancements to the associate incentive offering and an enhanced brand message are expected to drive customer growth.
Hyatt's Growth Expectations
Hyatt's top-line growth in 2025 is projected to be strong, with expectations to derive significant growth year over year, exceeding initial estimates of 30% growth.
Lowlights
Challenging Market Conditions in China
The environment in China remains tough, affecting performance. However, the company expects progress in this region moving forward.
Increased SG&A Expenses
SG&A expenses increased as a percentage of sales, influenced by currency exchange impacts and integration costs related to the Hyatt acquisition.
Limited Immediate Impact from India
Despite positive growth, the impact of the India market remains limited due to its relatively recent launch and small base.
Company Guidance
During the USANA Health Sciences Fourth Quarter Conference Call, the company provided guidance for fiscal year 2025, highlighting several key metrics and strategic initiatives. USANA reported a 7% sequential increase in net sales and a 14% rise in adjusted diluted EPS for the fourth quarter of 2024, with notable sales growth in the United States (16% sequentially) and in Australia and New Zealand (9% year-over-year). The company emphasized its strategic acquisition of a 78.8% ownership stake in Hyatt for $405 million, expecting Hyatt to generate $145 million to $160 million in revenue for 2025. USANA plans to launch over 20 new products and reformulations globally and intends to enhance its associate incentive offerings to drive customer growth. Additionally, the company aims to leverage its new commercial team structure to deliver a more cohesive brand presence and support key product and incentive launches.USANA Health Corporate Events
M&A TransactionsBusiness Operations and Strategy
USANA Health Expands with Hiya Health Acquisition
Positive
Dec 23, 2024
USANA Health Sciences, Inc. has acquired a 78.8% controlling stake in Hiya Health Products, LLC, an emerging leader in the children’s health and wellness market, for $205 million. This acquisition is expected to broaden USANA’s reach into the direct-to-consumer channel and enhance its financial profile by leveraging Hiya’s subscription model, which is anticipated to contribute to sustainable long-term growth and stakeholder value.
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.