NYSE:NUS

Stock Analysis Report

Executive Summary

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide.

Rewards

Trading at 61.3% below its fair value

Earnings are forecast to grow 16.29% per year

Pays a high and reliable dividend of 3.66%

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Herbalife Nutrition

NYSE:HLF

Share Price & News

How has Nu Skin Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.0%

NUS

-6.3%

US Personal Products

-1.3%

US Market


1 Year Return

-42.6%

NUS

38.5%

US Personal Products

22.0%

US Market

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

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


Shareholder returns

NUSIndustryMarket
7 Day-14.0%-6.3%-1.3%
30 Day-10.0%-1.8%1.6%
90 Day-18.2%4.8%8.9%
1 Year-40.7%-42.6%40.4%38.5%24.7%22.0%
3 Year-24.0%-29.7%64.2%56.1%49.4%39.7%
5 Year2.7%-11.2%85.9%66.7%78.1%58.5%

Price Volatility Vs. Market

How volatile is Nu Skin Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nu Skin Enterprises 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: NUS ($40.41) is trading below our estimate of fair value ($104.37)

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


Price To Earnings Ratio

PE vs Industry: NUS is poor value based on its PE Ratio (18.1x) compared to the Personal Products industry average (18.1x).

PE vs Market: NUS is good value based on its PE Ratio (18.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NUS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NUS is good value based on its PB Ratio (2.4x) compared to the US Personal Products industry average (2.4x).


Next Steps

Future Growth

How is Nu Skin Enterprises forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUS's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).

Earnings vs Market: NUS's earnings (16.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: NUS's earnings are forecast to grow, but not significantly.

Revenue vs Market: NUS's revenue (1.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: NUS's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUS's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has Nu Skin Enterprises performed over the past 5 years?

-8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUS has a large one-off loss of $77.9M impacting its September 30 2019 financial results.

Growing Profit Margin: NUS's current net profit margins (4.6%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: NUS's earnings have declined by -8.8% per year over the past 5 years.

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

Earnings vs Industry: NUS had negative earnings growth (-26.7%) over the past year, making it difficult to compare to the Personal Products industry average (21.4%).


Return on Equity

High ROE: NUS's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nu Skin Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: NUS's short term assets ($739.1M) exceed its short term liabilities ($368.4M).

Long Term Liabilities: NUS's short term assets ($739.1M) exceed its long term liabilities ($522.7M).


Debt to Equity History and Analysis

Debt Level: NUS's debt to equity ratio (43.4%) is considered high.

Reducing Debt: NUS's debt to equity ratio has increased from 20.2% to 43.4% over the past 5 years.

Debt Coverage: NUS's debt is well covered by operating cash flow (59.1%).

Interest Coverage: NUS's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet

Inventory Level: NUS has a high level of physical assets or inventory.

Debt Coverage by Assets: NUS's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Nu Skin Enterprises's current dividend yield, its reliability and sustainability?

4.06%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: NUS's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NUS's dividend (3.67%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: NUS's dividends per share have been stable in the past 10 years.

Growing Dividend: NUS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.8%), NUS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NUS's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

What is the CEO of Nu Skin Enterprises's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Ritch Wood (53yo)

2.8yrs

Tenure

US$6,065,610

Compensation

Mr. Ritch N. Wood has been the Chief Executive Officer of Nu Skin Enterprises, Inc. since March 7, 2017. Mr. Wood served as the Chief Financial Officer at Nu Skin Enterprises Inc. from November 2002 to Mar ...


CEO Compensation Analysis

Compensation vs Market: Ritch's total compensation ($USD6.07M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Ritch's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: NUS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

66yo

Average Age

Experienced Board: NUS's board of directors are considered experienced (8.8 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.


Ownership Breakdown

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


Management Team

  • Blake Roney (60yo)

    • Tenure: 36yrs
    • Compensation: US$621.69k
  • Steve Lund (66yo)

    Executive Chairman of the Board

    • Tenure: 7.7yrs
    • Compensation: US$1.26m
  • Sandie Tillotson (62yo)

    • Tenure: 24yrs
    • Compensation: US$1.06m
  • Ritch Wood (53yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$6.07m
  • Matt Dorny (55yo)

    Executive VP

    • Tenure: 17yrs
    • Compensation: US$1.94m
  • Joe Chang (66yo)

    Executive VP of Product Development & Chief Scientific Officer

    • Tenure: 13.9yrs
    • Compensation: US$2.33m
  • Ryan Napierski (45yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$3.47m
  • Mark Lawrence (49yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.07m
  • Vince Perfetti

    Chief Transformation Officer & Senior VP of Technology

    • Tenure: 0.7yrs
  • James Thomas (41yo)

    Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Steve Lund (66yo)

    Executive Chairman of the Board

    • Tenure: 7.7yrs
    • Compensation: US$1.26m
  • Edwina Woodbury (67yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$298.44k
  • Andy Lipman (67yo)

    Independent Director

    • Tenure: 20.7yrs
    • Compensation: US$298.94k
  • Dan Campbell (64yo)

    Lead Independent Director

    • Compensation: US$300.44k
  • Ritch Wood (53yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$6.07m
  • Lars Bohlin

    Member of Anti-Aging Scientific Advisory Board

    • Thomas Pisano (74yo)

      Independent Director

      • Tenure: 11.6yrs
      • Compensation: US$298.44k
    • Zoe Draelos

      Member of the Anti-Aging Scientific Advisory Board

      • Tenure: 10yrs
    • Tomas Prolla

      Member of Anti-aging Scientific Advisory Board

      • Tenure: 10.3yrs
    • Simon Shen (39yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$254.94k

    Company Information

    Nu Skin Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Nu Skin Enterprises, Inc.
    • Ticker: NUS
    • Exchange: NYSE
    • Founded: 1984
    • Industry: Personal Products
    • Sector: Household
    • Market Cap: US$2.022b
    • Shares outstanding: 55.55m
    • Website: https://www.nuskin.com

    Number of Employees


    Location

    • Nu Skin Enterprises, Inc.
    • 75 West Center Street
    • Provo
    • Utah
    • 84601
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NUSNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 1996
    NUSDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 1996
    NUSSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFNov 1996

    Biography

    Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC LumiSpa skin treatment and cleansing devices; and Epoch products, as well as a range of other cosmetic and personal care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, and LifePak nutritional supplements, as well as other anti-aging nutritional solutions and weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates walk-in centers and pick-up locations; and retail stores and service centers in Mainland China. The company sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 23:42
    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.