USANA Health (USNA) AI Stock Analysis

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USANA Health

(NYSE:USNA)

Rating:71Outperform

Price Target:

$32.00

▲(8.92%Upside)

The strong start to fiscal year 2025 and proactive trade strategies are notable positives for USANA Health. However, challenges such as declining revenues and cautious consumer sentiment in key markets moderate the overall score.

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

Market Cap

$547.15M

Dividend YieldN/A

Average Volume (3M)176.17K

Price to Earnings (P/E)16.1

Beta (1Y)0.88

Revenue Growth-2.69%

EPS Growth-43.24%

CountryUS

Employees1,700

SectorHealthcare

Sector Strength42

IndustryPackaged Foods

Share Statistics

EPS (TTM)0.73

Shares Outstanding18,623,075

10 Day Avg. Volume114,807

30 Day Avg. Volume176,173

Financial Highlights & Ratios

PEG Ratio-0.56

Price to Book (P/B)1.00

Price to Sales (P/S)0.00

P/FCF Ratio10.31

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.00

Price Target Upside22.53% Upside

Rating ConsensusHold

Number of Analyst Covering0

USANA Health Business Overview & Revenue Model

Company DescriptionUSANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional and personal care products. The company offers USANA nutritional products that comprise essentials/CellSentials, such as vitamin and mineral supplements that provide a foundation of total body nutrition for various age groups; optimizers comprising targeted supplements that are designed to meet cardiovascular, skeletal/structural, and digestive health needs; and foods that include meal replacement shakes, snack bars, and other related products. It also provides Celavive, a skin care regimen for various skin care types and ethnicities; and other products for prenatal, infant, and young child age groups. In addition, the company offers materials and online tools to assist associates in building their businesses, as well as in marketing products. It offers its products directly in the Asia Pacific, the Americas, and Europe, as well as online. The company has a research collaboration agreement with Beijing University of Chinese Medicine for research in the field of traditional Chinese medicine; and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

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 Earnings Call Summary

Earnings Call Date:Apr 22, 2025

(Q1-2025)

% Change Since: 21.20%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Positive

USANA's earnings call presented a strong start to fiscal year 2025 with significant growth in key markets and successful product launches. The acquisition of Hiya is performing well, contributing positively to sales. However, cautious consumer sentiment and uncertainty around trade policies pose potential challenges. Nonetheless, the proactive strategies in place provide confidence in navigating these uncertainties.

Q1-2025 Updates

Positive Updates

Strong Overall Start to Fiscal Year 2025

USANA reported a 12% year-over-year growth in consolidated net sales in constant currency, aligning with internal expectations. This includes the first full quarter contribution from Hiya.

Growth in Key Markets

Mainland China experienced a 6% growth in net sales and a 4% increase in active customers sequentially. South Korea also showed sequential growth in net sales and active customers.

Successful Product Launches

USANA expanded its product offerings in several markets, including new products in China, leading to higher-than-expected sales performances.

Hiya Acquisition Performance

Hiya showed strong growth in net sales and active monthly subscribers, with successful product launches such as Kids Daily Greens exceeding expectations.

Proactive Trade Strategy

USANA has built up inventory to mitigate potential tariff impacts and has explored alternative sourcing relationships to address emerging trade policies.

Negative Updates

Cautious Consumer Sentiment

Overall consumer sentiment remains cautious in key markets, posing potential challenges to sustaining growth.

Uncertainty in Trade Policies

The impact of potential trade policies and tariffs remains uncertain, which could affect future financial results.

Slow Progress in India

Despite high expectations, growth in the Indian market has been slow and requires continued focus to gain momentum.

Company Guidance

During the call, USANA Health Sciences provided guidance for the fiscal year 2025, highlighting a positive start with consolidated net sales growing by 12% year-over-year in constant currency. The company observed sequential growth in net sales and active customers for the second consecutive quarter, with a notable 6% and 4% increase in their largest market, Mainland China. The newly acquired Hiya business also showed strong performance, with significant growth in net sales and active monthly subscribers. While USANA remains on track to meet its sales guidance, the potential impact of tariffs and trade policies remains uncertain. The company has proactively built inventory to mitigate tariff exposure and is exploring alternative sourcing relationships. Overall, USANA is optimistic about its growth trajectory, driven by product innovation and strategic initiatives.

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 Price29.38

Price Trends

50DMA

27.74

Positive

100DMA

29.58

Negative

200DMA

33.63

Negative

Market Momentum

MACD

0.37

Positive

RSI

51.60

Neutral

STOCH

31.38

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 29.38 is below the 20-day moving average (MA) of 29.77, above the 50-day MA of 27.74, and below the 200-day MA of 33.63, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 31.38 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 3 New Risks

Growth through acquisitions is part of our strategy, and we may not successfully integrate, operate or realize the anticipated benefits of our acquisitions. Q4, 2024

The Hiya Acquisition may not be accretive, and may be dilutive, to our earnings per share, which may negatively affect the market price of our common stock. Q4, 2024

Although we expect that the Hiya Acquisition will result in synergies and other benefits to us, we may not realize those benefits because of challenges inherently associated with integration, performance and the achievement of synergies. Q4, 2024

USANA Health Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	77 Outperform	$266.27M	27.11	6.42%	―	2.00%	-37.09%
USNA	71 Outperform	$547.15M	16.09	6.78%	―	-2.69%	-43.24%
LFVN	70 Outperform	$157.60M	17.93	30.11%	1.32%	8.22%	159.71%
HLF	68 Neutral	$784.22M	2.80	-31.74%	―	-2.45%	100.59%
STKL	59 Neutral	$669.99M	―	-5.95%	―	2.44%	91.41%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
HAIN	43 Neutral	$159.75M	―	-31.83%	―	-8.50%	-186.18%

* Healthcare Sector Average

Performance Comparison

USNA

USANA Health

29.38

-17.48

-37.30%

HLF

Herbalife

7.70

-3.74

-32.69%

NATR

Nature's Sunshine Products

14.51

-0.77

-5.04%

STKL

SunOpta

5.70

0.09

1.60%

HAIN

Hain Celestial

1.77

-5.51

-75.69%

LFVN

LifeVantage

12.52

5.19

70.80%

USANA Health Corporate Events

Executive/Board ChangesShareholder Meetings

USANA Health Holds Annual Shareholders Meeting

Neutral

May 20, 2025

On May 19, 2025, USANA Health conducted its Annual Meeting of Shareholders, where approximately 92% of the company’s shares were represented. During the meeting, shareholders elected eight individuals to the Board of Directors, approved the 2025 Equity Incentive Plan, ratified KPMG LLP as the independent accounting firm for fiscal year 2025, and approved executive compensation on an advisory basis.

The most recent analyst rating on (USNA) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on USANA Health stock, see the USNA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

USANA Health Reports Q1 2025 Financial Results

Neutral

Apr 22, 2025

USANA Health Sciences reported its financial results for the first quarter of 2025, showing a 10% increase in net sales compared to the same period in 2024, despite a decline in net earnings and diluted EPS. The company reiterated its full-year outlook, highlighting strong growth in its Hiya direct-to-consumer business and a modest increase in direct sales and active customers. USANA is confident in its growth trajectory, despite global economic uncertainties, and continues to manage its supply chain effectively to mitigate potential impacts from trade policies and tariffs.

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.