USANA Health (USNA) AI Stock Analysis

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USANA Health

(NYSE:USNA)

66Neutral

USANA Health's stock score reflects a stable financial position with strong gross margins and a solid balance sheet, though challenged by declining revenues and net income. The technical analysis indicates a bearish trend, while the valuation appears reasonable. Positive earnings call sentiment, driven by strategic acquisitions and growth plans, boosts the overall outlook despite some market challenges.

USANA Health (USNA) vs. S&P 500 (SPY)

Market Cap

$481.69M

Dividend YieldN/A

Average Volume (3M)256.64K

Price to Earnings (P/E)11.6

Beta (1Y)0.82

Revenue Growth-7.22%

EPS Growth-33.67%

CountryUS

Employees1,700

SectorHealthcare

Sector Strength77

IndustryPackaged Foods

Share Statistics

EPS (TTM)2.19

Shares Outstanding18,904,526

10 Day Avg. Volume184,794

30 Day Avg. Volume256,638

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.60

Price to Cash Flow (P/CF)22.30

P/FCF Ratio22.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$50.50

Price Target Upside98.19% Upside

Rating ConsensusHold

Number of Analyst Covering2

USANA Health Business Overview & Revenue Model

Company DescriptionUSANA Health Sciences, Inc. (USNA) is a global leader in the health and wellness industry, primarily focused on developing and manufacturing high-quality nutritional supplements, personal care, and weight management products. The company operates through a direct selling model, reaching a wide customer base in various markets worldwide. USANA's core offerings include vitamins and dietary supplements designed to support overall health and well-being, as well as skincare products aimed at enhancing personal care routines.

How the Company Makes MoneyUSANA Health Sciences generates revenue primarily through the sale of its nutritional and personal care products, which are distributed via a direct selling model. Independent distributors, also known as 'associates,' play a key role in marketing and selling USANA's products to consumers, earning commissions on their sales. This multi-level marketing strategy allows USANA to expand its reach and maintain a flexible and motivated sales force. Additionally, the company benefits from a robust customer loyalty program, which encourages repeat purchases and enhances customer retention. Significant partnerships with research institutions also contribute to product development and innovation, ensuring USANA remains competitive in the health and wellness sector.

USANA Health Financial Statement Overview

Summary

USANA Health demonstrates strong gross profit margins and a solid balance sheet characterized by low leverage and strong equity. However, the company faces challenges with declining revenues, reduced net profit margins, and lower free cash flow growth. The overall financial position remains stable, but the company needs to address revenue and net income declines for improved financial performance.

Income Statement

Positive

USANA Health has experienced a declining revenue trend over the last few years, with a revenue decrease of approximately 7% from 2023 to 2024. The gross profit margin in 2024 was strong at around 81%, indicating efficient cost management. However, net profit margin decreased to about 4.92% in 2024 compared to 6.92% in 2023, reflecting pressure on net income. Despite this, the company maintains a solid EBIT margin at 7.76% in 2024. Overall, the company shows strong gross margins but faces challenges with declining revenues and net profitability.

Balance Sheet

Positive

USANA Health's balance sheet reflects a strong equity position with an equity ratio of approximately 71.1% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio remains low at 0.04, demonstrating conservative financial management and limited reliance on debt. Return on equity decreased to 7.9% in 2024 from 12.8% in 2023, indicating reduced profitability on equity investments. Overall, the company's balance sheet is robust, supported by strong equity and low debt levels, although ROE has seen a decline.

Cash Flow

Neutral

The cash flow analysis shows a modest decrease in free cash flow from 2023 to 2024 by about 9.3%. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio has declined, reflecting less cash available after capital expenditures. Despite these challenges, USANA Health continues to generate positive operating cash flow. Overall, cash flows are positive, but there is a downward trend in free cash flow growth.

Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
854.50M	921.01M	998.60M	1.19B	1.13B
	Gross Profit
693.29M	744.32M	804.71M	968.57M	925.53M
	EBIT
66.32M	93.07M	107.61M	170.19M	176.49M
	EBITDA
98.86M	123.11M	130.22M	192.89M	200.96M
	Net Income Common Stockholders
42.03M	63.79M	69.35M	116.50M	124.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.77M	330.42M	288.42M	239.83M	311.92M
	Total Assets
748.19M	632.76M	596.55M	577.74M	640.89M
	Total Debt
23.00M	13.21M	6.89M	7.08M	8.62M
	Net Debt
-158.77M	-317.21M	-281.53M	-232.75M	-303.30M
	Total Liabilities
161.86M	135.56M	162.08M	182.62M	199.24M
	Stockholders Equity
532.11M	497.20M	434.47M	395.12M	441.65M
Cash Flow		Free Cash Flow
50.92M	56.15M	93.50M	108.46M	145.31M
	Operating Cash Flow
60.99M	70.64M	103.90M	121.23M	160.40M
	Investing Cash Flow
-213.09M	-11.97M	-12.37M	-14.19M	-33.96M
	Financing Cash Flow
9.55M	-14.24M	-30.09M	-181.41M	-59.44M

USANA Health Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.48

Price Trends

50DMA

30.42

Negative

100DMA

33.70

Negative

200DMA

36.95

Negative

Market Momentum

MACD

-1.24

Positive

RSI

37.11

Neutral

STOCH

61.86

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 25.48 is below the 20-day moving average (MA) of 28.25, below the 50-day MA of 30.42, and below the 200-day MA of 36.95, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 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 41 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 (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LFVN	71 Outperform	$179.73M	25.34	25.67%	1.12%	0.57%	155.00%
NATR	70 Outperform	$217.74M	29.16	4.98%	―	2.03%	-47.76%
USNA	66 Neutral	$481.69M	11.63	7.76%	―	-7.22%	-33.67%
HLF	66 Neutral	$836.90M	3.31	-31.74%	―	-1.37%	75.47%
MED	55 Neutral	$144.27M	69.71	1.02%	―	-43.80%	-97.89%
NHTC	50 Neutral	$57.80M	100.80	1.54%	15.94%	-2.19%	0.60%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%

* Healthcare Sector Average

Performance Comparison

USNA

USANA Health

25.48

-21.24

-45.46%

HLF

Herbalife

8.27

0.18

2.22%

MED

Medifast

13.19

-19.95

-60.20%

NATR

Nature's Sunshine Products

11.78

-8.08

-40.68%

LFVN

LifeVantage

14.32

8.27

136.69%

NHTC

Natural Health Trends

5.02

-1.12

-18.24%

USANA Health Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -20.28% | 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 StrategyFinancial Disclosures

USANA Health Acquires Hiya Health to Boost Growth

Neutral

Feb 25, 2025

USANA Health Sciences reported a decline in financial performance for the fiscal year 2024, with net sales dropping to $855 million from $921 million in 2023, and net earnings falling to $42 million from $63.8 million. The company’s acquisition of Hiya Health Products, completed in December 2024, is expected to bolster its market position in the children’s health segment, although Hiya’s contribution to the year’s financial results was minimal. Despite challenges in the Asia Pacific market, USANA saw growth in the Americas and Europe, and the company remains optimistic about its growth strategy for 2025, projecting net sales between $920 million and $1 billion.

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.