NasdaqCM:NHTC

Stock Analysis Report

Executive Summary

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand.

Rewards

Trading at 59.6% below its fair value

Risk Analysis

Earnings have declined by -10.82% per year over past 5 years

Dividend of 12.01% is not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (2.8%) are lower than last year (10.7%)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Natural Health Trends's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NHTC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.9%

NHTC

-6.3%

US Personal Products

-1.3%

US Market


1 Year Return

-72.3%

NHTC

38.4%

US Personal Products

22.0%

US Market

Return vs Industry: NHTC underperformed the US Personal Products industry which returned 47.6% over the past year.

Return vs Market: NHTC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NHTCIndustryMarket
7 Day-13.9%-6.3%-1.3%
30 Day-19.8%-1.2%1.8%
90 Day-34.5%5.0%9.3%
1 Year-70.1%-72.3%40.3%38.4%24.6%22.0%
3 Year-76.6%-82.2%64.3%56.1%49.2%39.6%
5 Year-49.3%-62.4%86.2%67.0%77.9%58.3%

Price Volatility Vs. Market

How volatile is Natural Health Trends's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Natural Health Trends undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHTC ($5.33) is trading below our estimate of fair value ($13.18)

Significantly Below Fair Value: NHTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NHTC is poor value based on its PE Ratio (21.2x) compared to the Personal Products industry average (18.4x).

PE vs Market: NHTC is good value based on its PE Ratio (17.9x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NHTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NHTC is good value based on its PB Ratio (0.7x) compared to the US Personal Products industry average (2.6x).


Next Steps

Future Growth

How is Natural Health Trends forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted Household industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Natural Health Trends has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Natural Health Trends performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHTC has high quality earnings.

Growing Profit Margin: NHTC's current net profit margins (2.8%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: NHTC's earnings have declined by -10.8% per year over the past 5 years.

Accelerating Growth: NHTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NHTC had negative earnings growth (-86.7%) over the past year, making it difficult to compare to the Personal Products industry average (21.4%).


Return on Equity

High ROE: NHTC's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Natural Health Trends's financial position?


Financial Position Analysis

Short Term Liabilities: NHTC's short term assets ($116.1M) exceed its short term liabilities ($27.1M).

Long Term Liabilities: NHTC's short term assets ($116.1M) exceed its long term liabilities ($17.5M).


Debt to Equity History and Analysis

Debt Level: NHTC is debt free.

Reducing Debt: NHTC has not had any debt for past 5 years.

Debt Coverage: NHTC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NHTC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NHTC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NHTC's debt is covered by short term assets.


Next Steps

Dividend

What is Natural Health Trends's current dividend yield, its reliability and sustainability?

14.19%

Current Dividend Yield


Dividend Yield vs Market

company14.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NHTC's dividend (12.01%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NHTC's dividend (12.01%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: NHTC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NHTC's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127.2%), NHTC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Natural Health Trends's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average board tenure


CEO

Chris Sharng (55yo)

0yrs

Tenure

US$1,539,801

Compensation

Mr. Chris T. Sharng has been the President of Natural Health Trends Corp. since February 26, 2007 and serves as its Chief Executive Officer. He is responsible for overseeing operations and providing expert ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.54M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Board Age and Tenure

7.8yrs

Average Tenure

60yo

Average Age

Experienced Board: NHTC's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,24024 Jun 19
George Broady
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$8.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chris Sharng (55yo)

    President

    • Compensation: US$1.54m
  • Timothy Davidson (48yo)

    Senior VP

    • Tenure: 12.9yrs
    • Compensation: US$715.42k

Board Members

  • George Broady (80yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$150.00k
  • Chris Sharng (55yo)

    President

    • Compensation: US$1.54m
  • Randall Mason (60yo)

    Non-Executive Chairman

    • Tenure: 13.8yrs
    • Compensation: US$198.00k
  • Kin Chung (79yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$150.00k
  • Enoch Chan (52yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$150.00k

Company Information

Natural Health Trends Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Natural Health Trends Corp.
  • Ticker: NHTC
  • Exchange: NasdaqCM
  • Founded: 1988
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$49.581m
  • Shares outstanding: 10.46m
  • Website: https://www.naturalhealthtrendscorp.com

Number of Employees


Location

  • Natural Health Trends Corp.
  • Mira Place Tower A
  • 12th Floor
  • Tsimshatsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NHTCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1995
NAHDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995

Biography

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted, and powder dietary and nutritional supplements, as well as vitamins and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as anti-aging and hydrating cleansers, creams, lotions, serums, and toners; lifestyle products, which include weight management, intimacy support, and energy enhancing supplements; and dietary supplement drink mixes. In addition, the company offers home and car appliances; and infant and toddler bath and body care products. It sells its products directly to consumers through an e-commerce retail platform in the Americas, Hong Kong, China, Taiwan, South Korea, Japan, Singapore, Malaysia, Russia, Kazakhstan, and Europe. Natural Health Trends Corp. was founded in 1988 and is headquartered in Tsimshatsui, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 23:48
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.