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USNA: Active Acquisition Pursuits Will Drive Future Business Diversification Ahead

Share Repurchases And Product Expansion Will Drive Profitability And Brand Recognition

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USNA
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 09 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-45.5%
7D
4.5%

Analysts have modestly raised their price target on USANA Health Sciences to approximately $39.00, citing slightly higher long term growth assumptions and a marginal uptick in expected valuation multiples.

What's in the News

  • USANA Health Sciences was removed as a constituent from the S&P 600, S&P 1000, and S&P Composite 1500 indexes, as well as the S&P 600 Consumer Staples sector index, potentially reducing passive index fund ownership of the stock (Index Constituent Drops).
  • The company lowered its fiscal 2025 guidance, now expecting net sales of $920 million and net earnings of $15 million, with diluted EPS forecast at $0.78, significantly below its prior outlook (Corporate Guidance: Lowered).
  • Management signaled a strategic focus on diversification and is actively seeking mergers and acquisitions, aiming to complement its core direct selling channel with additional growth avenues (Seeking Acquisitions/Investments).
  • USANA completed a long running share repurchase program totaling 8,544,925 shares, or about 39% of shares outstanding, for $678.7 million, with no additional shares bought in the most recent quarter (Buyback Tranche Update).
  • The company expanded its product portfolio, with its Vitamin D supplement earning the ConsumerLab.com Seal of Approval and a revamped Celavive skincare line featuring upgraded formulations and new global brand ambassadors (Product Related Announcements).

Valuation Changes

  • Fair Value Estimate is maintained at approximately $39.00 per share, indicating no material change in intrinsic value assessment.
  • The Discount Rate has risen slightly from about 7.43 percent to roughly 7.45 percent, reflecting a modest increase in the assumed risk profile.
  • Revenue Growth is effectively unchanged at about 21.3 percent, signifying stable expectations for long term top line expansion.
  • The Net Profit Margin is effectively unchanged at approximately 6.08 percent, indicating steady assumptions for underlying profitability.
  • The Future P/E has risen slightly from about 13.85x to roughly 13.86x, pointing to a marginally higher valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.