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Natural Health Trends
(NASDAQ:NHTC)
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Rating:46Neutral
Price Target:
$1.00
▼(-41.52% Downside)
Action:Reiterated
Date:09/22/26
NHTC scores low primarily due to weak financial performance—declining revenue, operating losses, and persistent negative free cash flow—supported only partially by a modestly levered balance sheet. Technicals also remain decisively bearish with the stock below key moving averages and negative momentum. The earnings call adds some credit for cost actions and margin improvement, but the steep sales contraction and cash decline keep the overall risk elevated; valuation is mixed due to an uninformative negative P/E and an unusually high dividend yield.
Positive Factors
High gross margin
A gross margin above 73% across periods gives NHTC meaningful economic value per product sale and provides room to fund distributor commissions and overhead. The recent improvement, linked to manufacturing closer to key markets, may support profitability if sales stabilize.
Negative Factors
Revenue contraction
A sharp sales decline threatens the scale advantages of NHTC’s direct-selling model because distributor activity and product volume drive revenue. Continued caution and pauses among members, particularly in China, could weaken market presence and make fixed costs harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A gross margin above 73% across periods gives NHTC meaningful economic value per product sale and provides room to fund distributor commissions and overhead. The recent improvement, linked to manufacturing closer to key markets, may support profitability if sales stabilize.
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
$9.44M
Dividend Yield57.14%
Average Volume (3M)42.61K
Price to Earnings (P/E)―
Beta (1Y)0.77
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. Volume57,137
30 Day Avg. Volume42,612
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
1.67
Negative
2.02
Negative
2.54
Negative
Market Momentum
-0.15
Positive
17.41
Positive
6.80
Positive
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 1.51, above the 50-day MA of 1.67, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 17.41 is Positive, neither overbought nor oversold. The STOCH value of 6.80 is Positive, 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
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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.