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Nu Skin Enterprises (NUS)
NYSE:NUS
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Nu Skin
(NYSE:NUS)
Rating:61Neutral
Price Target:
$8.00
▼(-4.76%Downside)
Positive Factors
Cost Management
Cost savings initiatives, accelerated SKU rationalization plan, and promo/discount management are viewed positively.
Innovation
NUS is working to stimulate its core business with innovation and refreshed business models in select markets.
Negative Factors
Guidance and Performance
The company lowered 2024 net sales and EPS guidance citing pressure across the P&L from tough macros, greater FX headwinds, negative mix on GM, increased selling expense, and higher taxes.
Market Conditions
The stock is down about 40% since reporting 2Q’24 results, reflecting weaker macroeconomic conditions and removal from the S&P 600 index.
Sales Outlook
The 3Q’24/2024 CC sales outlook has worsened as macros and beauty category trends have softened.
Nu Skin (NUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$374.06M
Dividend Yield3.24%
Average Volume (3M)579.83K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-11.85%
EPS Growth-1080.00%
CountryUS
Employees3,100
SectorConsumer Cyclical
Sector Strength78
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.23
Shares Outstanding49,412,994
10 Day Avg. Volume400,066
30 Day Avg. Volume579,827
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.52
Price to Sales (P/S)0.00
P/FCF Ratio4.82
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.53
Enterprise Value/Ebitda93.49
Forecast
1Y Price Target
$7.50Price Target Upside-10.71% Downside
Rating ConsensusHold
Number of Analyst Covering0
Nu Skin Business Overview & Revenue Model
Company DescriptionNu Skin Enterprises, Inc. (NUS) is a global direct selling company that operates in the personal care and wellness sectors. Founded in 1984 and headquartered in Provo, Utah, Nu Skin develops and distributes a range of premium-quality products, including skincare solutions, nutritional supplements, and anti-aging treatments. The company leverages a network of independent distributors to market its products in various international markets, making it a prominent player in the direct selling industry.
How the Company Makes MoneyNu Skin generates revenue primarily through the sale of its personal care and wellness products via a direct selling model. The company's independent distributors purchase products at wholesale prices and sell them at retail prices, earning a profit from the difference. Additionally, distributors can recruit others to join the network, earning commissions and bonuses based on their recruits' sales, which creates a multi-tiered revenue structure. This business model enables Nu Skin to expand its market reach without incurring the costs associated with traditional retail operations. The company also invests in research and development to innovate and improve its product offerings, thereby maintaining consumer interest and driving sales. Strategic partnerships and a strong focus on high-demand markets such as skincare and nutrition further bolster Nu Skin's revenue streams.
Nu Skin Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 36.36%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in revenue growth, debt reduction, and innovative product launches, countered by challenges in North America, gross margin decline, and potential macroeconomic headwinds.Q1-2025 Updates
Positive Updates
Revenue and Earnings at High End of Guidance
First quarter revenue reached $364.5 million at the high end of guidance, despite a 3% negative foreign currency impact. Adjusted earnings per share surpassed expectations at $0.23, a significant improvement from the previous year's $0.09.
Significant Growth in Latin America
The developing market strategy led to a 144% year-on-year growth in Latin America, contributing to improved profitability.
Debt Reduction and Strong Cash Position
The company reduced outstanding debt by $155 million, achieving the lowest debt level in over 10 years, and ended the quarter with $204 million in cash.
Introduction of Prysm iO
Nu Skin plans to launch Prysm iO, an intelligent wellness platform, leveraging AI and a large antioxidant database to enhance customer relationships and product recommendations.
Operational Efficiency Improvements
Operating margin improved to 6.4% from the previous year's 3.8%, with ongoing efforts to optimize expenses and enhance profitability.
Expansion into India
Nu Skin plans to enter the Indian market with locally manufactured products and a tailored sales compensation plan, targeting long-term growth opportunities.
Negative Updates
Challenges in North America
The U.S. and Canada faced increasing macroeconomic pressures, affecting business performance in these regions.
Gross Margin Decline
The gross margin decreased to 67.8% from 70.5% the prior year, primarily due to revenue mix changes and macroeconomic pressures.
Headwinds in Indonesia
Indonesia reported additional challenges during the quarter, impacting overall performance in Southeast Asia Pacific.
Potential Impact of Tariffs
There is ongoing uncertainty regarding the impact of tariffs on inflation and consumer sentiment, which could affect demand for premium products.
Company Guidance
During the Q1 2025 earnings call, Nu Skin Enterprises reported revenue at the high end of their guidance range, totaling $364.5 million, despite a 3% negative foreign currency impact. The company exceeded expectations for adjusted earnings per share, which came in at $0.23, surpassing the prior year's $0.09. Gross margin was reported at 67.8%, with the core Nu Skin business achieving a margin of 76.7%. Selling expenses were at 32.5% of revenue, reflecting a decline compared to the previous year, while general and administrative expenses improved to 28.9% of revenue. The company reduced its debt by $155 million, bringing it to the lowest level in over a decade at $239 million, and ended the quarter with $204 million in cash. Looking forward, Nu Skin anticipates second-quarter revenue between $355 million and $390 million and earnings per share in the range of $0.20 to $0.30. The company continues to focus on strengthening its core business, accelerating innovation, and improving operational efficiency amid macroeconomic challenges.Nu Skin Financial Statement Overview
Summary
Nu Skin is facing financial headwinds with declining revenues and profitability challenges, as evident from negative net income and EBIT. The balance sheet indicates moderate leverage but declining equity. Cash flows remain a strength, supporting operational resilience despite profitability pressures.Income Statement
Nu Skin's revenue has seen a decline over the years, with a significant drop in the latest year, indicating negative growth trends. The gross profit margin is healthy, but the company experienced a negative EBIT and net profit margin, highlighting operational challenges and reduced profitability.55
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the decreasing equity ratio signals declining financial stability. Return on equity has turned negative due to recent losses, indicating challenges in generating returns for shareholders.60
Neutral
Cash Flow
Operating cash flow remains positive, indicating good cash generation from core activities. However, free cash flow growth is inconsistent, with a recent decline. The cash flow to net income ratios are favorable, suggesting efficient cash conversion despite current profitability issues.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.73B | 1.97B | 2.23B | 2.70B | 2.58B | Gross Profit |
| 1.18B | 1.36B | 1.59B | 2.02B | 1.92B | EBIT |
| -151.59M | 48.27M | 110.85M | 233.99M | 257.56M | EBITDA |
| -78.83M | 138.98M | 231.85M | 368.48M | 331.56M | Net Income Common Stockholders |
| -146.59M | 8.60M | 104.78M | 147.27M | 191.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 197.99M | 267.82M | 278.51M | 354.81M | 423.90M | Total Assets |
| 1.47B | 1.81B | 1.82B | 1.91B | 1.96B | Total Debt |
| 478.23M | 607.33M | 479.01M | 465.04M | 500.38M | Net Debt |
| 291.34M | 351.27M | 214.28M | 125.45M | 97.69M | Total Liabilities |
| 817.46M | 984.50M | 923.67M | 993.71M | 1.06B | Stockholders Equity |
| 651.46M | 821.97M | 897.30M | 912.77M | 894.27M |
| Cash Flow | Free Cash Flow | |||
| 70.16M | 60.15M | 49.01M | 72.97M | 315.32M | Operating Cash Flow |
| 111.74M | 118.64M | 108.06M | 141.58M | 379.14M | Investing Cash Flow |
| -37.96M | -134.50M | -67.08M | -88.73M | -79.43M | Financing Cash Flow |
| -133.18M | 10.73M | -99.50M | -104.70M | -245.17M |
Nu Skin Technical Analysis
Positive
8.40
Price Trends
6.71
Positive
6.96
Positive
7.12
Positive
Market Momentum
0.37
Negative
71.13
Negative
75.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUS, the sentiment is Positive. The current price of 8.4 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.71, and above the 200-day MA of 7.12, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUS.
Nu Skin Risk Analysis
Nu Skin disclosed 11 risk factors in its most recent earnings report. Nu Skin 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.
Challenges to the form of our network marketing system or to our business practices have harmed and could continue to harm our business. Q4, 2024
Nu Skin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.90B | 42.76 | 17.92% | 0.81% | 8.96% | -22.99% | |
76 Outperform | $11.73B | 76.27 | 36.79% | ― | 85.99% | ― | |
63 Neutral | $614.40M | 4.96 | 7.45% | ― | -4.93% | -23.61% | |
62 Neutral | $6.91B | 11.20 | 2.94% | 3.92% | 2.69% | -25.04% | |
61 Neutral | $374.06M | ― | -4.93% | 3.24% | -11.85% | -1080.00% | |
60 Neutral | $4.25B | 40.12 | -10.58% | ― | -1.68% | -302.11% | |
56 Neutral | $202.88M | ― | -70.44% | ― | -17.97% | 49.13% |
* Consumer Cyclical Sector Average
Performance Comparison
NUS
Nu Skin
8.40
-4.66
-35.68%
HELE
Helen Of Troy
26.78
-80.10
-74.94%
SGI
Somnigroup International
65.32
14.46
28.43%
COTY
Coty
4.99
-5.37
-51.83%
HIMS
Hims & Hers Health
52.40
32.98
169.82%
SKIN
Beauty Health
1.61
-0.60
-27.15%
Nu Skin Corporate Events
M&A TransactionsBusiness Operations and Strategy
Nu Skin Sells Mavely Platform to Later for $250M
Positive
Jan 3, 2025
Nu Skin Enterprises announced the sale of its Mavely affiliate marketing technology platform to Later for approximately $250 million, including cash and a minority equity stake. The transaction is expected to enhance Nu Skin’s capabilities in its affiliate marketing business and provide capital for innovation and debt repayment, yielding a five-times return on investment in Mavely since 2021.
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.