USANA Health (USNA) AI Stock Analysis

• Market Cap: $364.15M
• Dividend Yield: N/A
• Average Volume (3M): 173.43K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.01
• Revenue Growth: 5.88%
• EPS Growth: -68.62%
• Country: US
• Employees: 1,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.15
• Shares Outstanding: 18,280,857
• 10 Day Avg. Volume: 170,208
• 30 Day Avg. Volume: 173,431
• PEG Ratio: -0.48
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 13.36
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.60
• Enterprise Value/Ebitda: 5.12
• 1Y Price Target: $39.00
• Price Target Upside: 95.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.7
• Revenue Forecast (FY): $920.41M

• Rating: 61 Neutral
• Price Target: $20.50 ▲(2.91% Upside)

USANA Health's overall stock score reflects a stable financial position with strong gross margins and a solid balance sheet. However, declining revenues, reduced net profit margins, and lower free cash flow growth pose significant challenges. Technical indicators suggest a bearish trend, and valuation is moderate. The earnings call provided mixed signals with positive strategic initiatives but highlighted operational challenges. Recent corporate events further underscore the need for strategic adjustments to improve profitability.

Positive Factors

Strong Gross Margins

High gross margins indicate efficient cost management and pricing power, which can support profitability even amid revenue challenges.

Enhanced Compensation Plan

The new compensation plan could drive long-term growth by boosting Brand Partner productivity and retention, enhancing sales performance.

In-House Manufacturing

In-house production can improve margins and supply chain control, providing a competitive edge and supporting long-term cost efficiency.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses a risk to long-term growth and profitability, necessitating strategic adjustments to reverse the trend.

Reduced Net Profit Margin

Decreased net profit margins reflect pressures on profitability, which could impact the company's ability to reinvest in growth initiatives.

Lower Free Cash Flow Growth

Declining free cash flow growth limits financial flexibility, potentially affecting the company's ability to fund new projects and pay down debt.

USANA Health Business Overview & Revenue Model

Company Description

USANA 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 Money

USANA generates revenue primarily through the direct sale of its health and wellness products. The company utilizes a multi-level marketing (MLM) model, where independent distributors earn commissions not only on their own sales but also on the sales made by their recruits, thereby incentivizing recruitment and sales. Key revenue streams include the sale of nutritional supplements, personal care products, and weight management products. Additionally, USANA has established significant partnerships with various organizations and healthcare professionals to enhance brand credibility and expand its market reach. The company's focus on product innovation and science-backed formulations also plays a crucial role in driving customer loyalty and repeat purchases, contributing to its overall earnings.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	912.67M	854.50M	921.01M	998.60M	1.19B	1.13B
Gross Profit	722.67M	693.29M	744.32M	804.71M	968.57M	925.53M
EBITDA	83.93M	98.86M	123.11M	130.22M	192.89M	200.96M
Net Income	17.02M	42.03M	63.79M	69.35M	116.50M	124.66M
Balance Sheet
Total Assets	726.59M	748.19M	632.76M	596.55M	577.74M	640.89M
Cash, Cash Equivalents and Short-Term Investments	145.35M	181.77M	330.42M	288.42M	239.83M	312.88M
Total Debt	0.00	39.20M	13.21M	13.78M	17.30M	21.47M
Total Liabilities	145.04M	161.86M	135.56M	162.08M	182.62M	199.24M
Stockholders Equity	528.07M	532.11M	497.20M	434.47M	395.12M	441.65M
Cash Flow
Free Cash Flow	18.69M	50.92M	56.15M	93.50M	108.46M	145.31M
Operating Cash Flow	31.52M	60.99M	70.64M	103.90M	121.23M	160.40M
Investing Cash Flow	-216.37M	-213.09M	-11.97M	-12.37M	-14.19M	-33.96M
Financing Cash Flow	-31.13M	9.55M	-14.24M	-30.09M	-181.41M	-59.44M

USANA Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.92 is below the 20-day moving average (MA) of 20.03, below the 50-day MA of 20.04, and below the 200-day MA of 27.06, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USNA.

USANA Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$389.10M	27.41	9.52%	―	6.62%	-7.85%
HLF	71 Outperform	$1.45B	4.47	―	―	-0.78%	265.56%
LWAY	71 Outperform	$359.86M	32.59	14.46%	―	12.14%	-17.80%
FTLF	71 Outperform	$158.52M	24.27	17.77%	―	12.44%	-20.33%
LFVN	66 Neutral	$78.75M	8.05	33.31%	2.82%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$364.15M	22.38	3.20%	―	5.88%	-68.62%

USANA Health Corporate Events

USANA Health Reports Q3 2025 Sales Increase

USANA Health Sciences reported a 7% increase in net sales for the third quarter of 2025 compared to the same period in 2024, reaching $214 million. However, the company experienced a net loss of $6.5 million, attributed to investments in a new Brand Partner compensation plan and an increased effective tax rate. Despite these challenges, USANA remains optimistic about its long-term growth, supported by a successful Global Convention, new product launches, and a strategic focus on enhancing its Brand Partner network. The company also reported significant progress in its direct-to-consumer business, Hiya, which achieved 26% year-to-date sales growth and is expected to continue its upward trajectory.

USANA Health Reports Q3 2025 Preliminary Results

USANA Health Sciences announced preliminary third-quarter results for 2025, revealing net sales of approximately $214 million, up from $200 million in the same period last year. However, earnings from operations dropped significantly to $1.2 million compared to $15.6 million in 2024, attributed to challenges during the rollout of a new Brand Partner compensation plan and lower-than-expected sales from their direct-to-consumer business, Hiya. Despite these setbacks, USANA remains optimistic about long-term growth, emphasizing strategic initiatives to modernize operations and enhance Brand Partner productivity. The company also faced a substantial increase in the effective income tax rate, impacting profitability, and anticipates a lower earnings outlook for the full year.