Want to see NHTC full AI Analyst Report?
Top Page
Natural Health Trends
(NASDAQ:NHTC)
Select Model
Select Model
Rating:45Neutral
Price Target:
$0.96
▼(-43.63% Downside)
Action:Reiterated
Date:09/29/26
The score is held down primarily by weak financial performance (declining revenue, operating losses, and negative operating/free cash flow) and very bearish technicals (price below all major moving averages with deeply weak momentum). The earnings call adds some support from cost savings and margin improvement, but near-term results remain pressured by steep sales declines and reduced cash. Valuation is mixed: the very high dividend yield helps, but losses (negative P/E) and cash-flow weakness raise sustainability concerns.
Positive Factors
Improving Gross Margin
The higher gross margin indicates improved product economics, while relocating manufacturing closer to key markets may support continued efficiency. If maintained, this gives the company more capacity to absorb distributor commissions, fund operations, and pursue recovery without relying solely on revenue growth.
Negative Factors
Persistent Revenue Decline
A steep sales decline is a fundamental concern because the direct-selling model depends on distributor activity and consumer purchases for revenue. Continued caution and regulatory uncertainty in China could weaken member productivity, reduce scale, and limit the benefits of the company’s cost actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margin
The higher gross margin indicates improved product economics, while relocating manufacturing closer to key markets may support continued efficiency. If maintained, this gives the company more capacity to absorb distributor commissions, fund operations, and pursue recovery without relying solely on revenue growth.
Read all positive factors
Natural Health Trends Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Tracks each segment’s profitability after operating expenses like marketing and administration, highlighting which businesses actually contribute to the company’s bottom line and which require continued investment or restructuring. Identifies where management should allocate capital and where losses may pose a risk to overall earnings.
Tracks each segment’s profitability after operating expenses like marketing and administration, highlighting which businesses actually contribute to the company’s bottom line and which require continued investment or restructuring. Identifies where management should allocate capital and where losses may pose a risk to overall earnings.
Data provided by:
The Fly
The FlyNatural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.84M
Dividend Yield58.25%
Average Volume (3M)69.24K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth-14.38%
EPS Growth-615.84%
CountryUS
Employees119
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.15
Shares Outstanding8,577,848
10 Day Avg. Volume143,236
30 Day Avg. Volume69,243
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.52
Price to Sales (P/S)0.89
P/FCF Ratio-5.86
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Natural Health Trends Business Overview & Revenue Model
Company Description
Natural Health Trends Corp. (NHTC) operates as an international enterprise specializing in direct sales and e-commerce. It distributes a diverse portfolio of personal care, wellness, and lifestyle products, all marketed under its NHT Global brand....
How the Company Makes Money
NHTC generates revenue primarily from product sales made through its direct-selling (multi-level marketing) distribution model. The company sells health and wellness products (e.g., nutritional supplements and personal care items) to end consumers...
Natural Health Trends Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Negative
The call presented a mix of operational improvements and new product momentum (margin expansion, restructuring savings, improved operating cash flow, product launch, and share repurchase authorization), but these positives were overshadowed by a pronounced revenue decline (-23% year-over-year), a swing to net loss, increased operating loss, significant cash reduction since year-end, and ongoing China-related headwinds and member misconduct that disrupted business. While management is taking disciplined steps to improve efficiency and engagement, near-term financial performance and market challenges weigh heavily on the outlook.Positive Updates
Gross Margin Improvement
Gross profit margin increased to 75.2% from 73.9% year-over-year (up 1.3 percentage points), driven by transitioning much of product manufacturing from the U.S. to East Asia closer to main markets.
Negative Updates
Significant Revenue Decline
Second quarter net sales were $7.6 million, a 23% decrease from $9.8 million in Q2 2025, primarily due to cautious consumer spending and regulatory uncertainty in China that caused member activity pauses.
Read all updates
Q2-2026 Updates
Positive
Negative
Gross Margin Improvement
Gross profit margin increased to 75.2% from 73.9% year-over-year (up 1.3 percentage points), driven by transitioning much of product manufacturing from the U.S. to East Asia closer to main markets.
Read all positive updates
Company Guidance
The guidance emphasized financial discipline and execution to drive savings and position the business for recovery: Q2 net sales were $7.6M (down 23% YoY) while gross margin improved to 75.2% from 73.9% and commissions remained 40.9% of revenue; restructuring delivered roughly $300K of savings in the quarter and more than $600K year-to-date with additional savings expected in the second half, SG&A was $3.3M (down $323K YoY), operating loss was $643K (net loss $451K, or $0.05 per diluted share, versus net income $15K prior-year), and the company reported $18.6M of cash and marketable securities at June 30 (down from $28.9M at Dec. 31, 2025) after repurchases and dividends, used $2.2M of operating cash in the first six months (vs $5.2M a year earlier), resumed share repurchases with $15.9M available, and plans customer- and field-focused initiatives (including a 25th‑anniversary event expected to draw more than 1,000 attendees) to support long-term growth.Natural Health Trends Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.03M | 39.78M | 42.96M | 43.92M | 49.13M | 60.01M |
| Gross Profit | 26.71M | 29.25M | 31.79M | 32.75M | 36.47M | 44.99M |
| EBITDA | -1.27M | -458.00K | 751.00K | 909.00K | 806.00K | 1.81M |
| Net Income | -1.62M | -882.00K | 572.00K | 568.00K | 313.00K | 1.08M |
Balance Sheet | ||||||
| Total Assets | 29.21M | 38.43M | 55.36M | 69.09M | 82.82M | 98.36M |
| Cash, Cash Equivalents and Short-Term Investments | 18.62M | 28.87M | 43.94M | 56.18M | 69.67M | 83.84M |
| Total Debt | 2.75M | 3.13M | 2.64M | 3.46M | 4.12M | 3.17M |
| Total Liabilities | 14.01M | 15.00M | 22.49M | 27.49M | 32.67M | 38.87M |
| Stockholders Equity | 15.20M | 23.43M | 32.87M | 41.60M | 50.15M | 59.49M |
Cash Flow | ||||||
| Free Cash Flow | -2.35M | -6.07M | -3.42M | -4.32M | -5.00M | 791.00K |
| Operating Cash Flow | -1.86M | -6.00M | -3.37M | -4.28M | -4.85M | 1.02M |
| Investing Cash Flow | 13.92M | 8.15M | -30.07M | -46.00K | -143.00K | -225.00K |
| Financing Cash Flow | -13.33M | -9.21M | -9.21M | -9.21M | -9.14M | -9.14M |
Natural Health Trends Technical Analysis
Negative
1.71
Price Trends
1.58
Negative
1.91
Negative
2.50
Negative
Market Momentum
-0.19
Positive
27.11
Positive
20.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Negative. The current price of 1.71 is above the 20-day moving average (MA) of 1.35, above the 50-day MA of 1.58, and below the 200-day MA of 2.50, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHTC.
Natural Health Trends Risk Analysis
Natural Health Trends disclosed 40 risk factors in its most recent earnings report. Natural Health Trends 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
1.
Our business in China is subject to compliance with a myriad of applicable laws and regulations, and any actual or alleged violations of those laws or government actions otherwise directed at us could have a material adverse impact on our business and the value of our company. Q2, 2026
Natural Health Trends Peers Comparison
UnderperformOutperform
Sector (61)
NHTC
Natural Health Trends
1.03
-2.87
-73.56%
MOGU
Mogu
1.86
-1.47
-44.14%
MI
NFT
2.16
-277.84
-99.23%
OCG
Oriental Culture Holding
1.57
-2,581.14
-99.94%
JBDI
JBDI Holdings Limited
1.10
-2.18
-66.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.