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Natural Health Trends Corp (NHTC)
:NHTC
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Natural Health Trends
(NASDAQ:NHTC)55Neutral
Natural Health Trends (NHTC) vs. S&P 500 (SPY)
Market Cap
$58.14M
Dividend Yield15.47%
Average Volume (3M)24.00K
Price to Earnings (P/E)101.4
Beta (1Y)0.50
Revenue Growth-2.19%
EPS Growth0.60%
CountryUS
Employees139
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.05
Shares Outstanding11,513,075
10 Day Avg. Volume19,780
30 Day Avg. Volume23,999
Financial Highlights & Ratios
PEG Ratio167.66
Price to Book (P/B)N/A
Price to Sales (P/S)1.39
Price to Cash Flow (P/CF)169.10
P/FCF Ratio218.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Natural Health Trends Business Overview & Revenue Model
Company DescriptionNatural Health Trends Corp (NHTC) is a direct-selling and e-commerce company that focuses on providing premium health and wellness products. The company's core product offerings include personal care, wellness, and lifestyle products, marketed under various brand names. Operating in the global market, NHTC primarily targets consumers seeking holistic and natural health solutions.
How the Company Makes MoneyNatural Health Trends generates revenue through its direct-selling business model, where independent distributors sell their health and wellness products directly to consumers. These distributors, who are part of a multi-level marketing network, earn commissions on their sales and the sales made by their recruited team members. NHTC's revenue streams are significantly influenced by the number of active distributors and the volume of product sales they achieve. The company also leverages e-commerce platforms to expand its reach and facilitate product sales. Additionally, strategic partnerships and international market expansions contribute to its financial performance, allowing NHTC to tap into new consumer bases and diversify its revenue sources.
Natural Health Trends Financial Statement Overview
Summary
NHTC faces significant challenges with declining revenues and profitability issues. The income statement reflects declining revenue and negative margins, indicating difficulties in operational efficiency. The balance sheet shows low leverage but declining equity, pointing to potential long-term concerns. Cash flow problems are evident with consistent negative free cash flow and struggles in generating cash from operations.Income Statement
NHTC's revenue has been declining over the years, with a revenue decrease from $62.07M in 2020 to $42.96M in 2024. The company has faced challenges in maintaining profitability, as evidenced by negative EBIT and EBITDA margins in recent years. However, there is a slight improvement in net profit margin in 2024 compared to the previous year, indicating some cost control. The declining revenue and negative margins suggest difficulties in operational efficiency.45
Neutral
Balance Sheet
NHTC maintains a strong equity position with a healthy equity ratio, though it has decreased from 2020. The company's debt-to-equity ratio remains low, indicating conservative leverage usage. However, the declining stockholders' equity over the years reflects potential erosion of shareholder value. Despite this, the low debt level and substantial cash reserves suggest financial stability.60
Neutral
Cash Flow
NHTC's cash flow situation is concerning, with consistent negative free cash flow over the years. The operating cash flow is negative, indicating challenges in generating cash from core operations. The significant negative investing cash flow in 2024 suggests high capital investments or other cash outflows. The negative free cash flow to net income ratio highlights inefficiencies in cash generation relative to net income.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 42.96M | 43.92M | 49.13M | 60.01M | 62.07M | Gross Profit |
| 31.79M | 32.75M | 36.47M | 44.99M | 45.08M | EBIT |
| -1.30M | -1.67M | -270.00K | 1.57M | 669.00K | EBITDA |
| -1.30M | -1.51M | -66.00K | 1.87M | 1.08M | Net Income Common Stockholders |
| 572.00K | 568.00K | 313.00K | 1.08M | 843.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 43.94M | 56.18M | 69.67M | 83.84M | 92.37M | Total Assets |
| 55.36M | 69.09M | 82.82M | 98.36M | 105.94M | Total Debt |
| 2.64M | 3.46M | 4.12M | 3.17M | 3.94M | Net Debt |
| -10.89M | -52.71M | -65.54M | -80.68M | -88.43M | Total Liabilities |
| 22.49M | 27.49M | 32.67M | 38.87M | 38.24M | Stockholders Equity |
| 32.87M | 41.60M | 50.15M | 59.49M | 67.70M |
| Cash Flow | Free Cash Flow | |||
| -3.42M | -4.32M | -5.00M | 791.00K | 1.67M | Operating Cash Flow |
| -3.37M | -4.28M | -4.85M | 1.02M | 1.89M | Investing Cash Flow |
| -30.07M | -46.00K | -143.00K | -225.00K | -211.00K | Financing Cash Flow |
| -9.21M | -9.21M | -9.14M | -9.14M | -9.14M |
Natural Health Trends Technical Analysis
Positive
5.17
Price Trends
4.72
Positive
4.97
Positive
5.60
Negative
Market Momentum
0.07
Negative
60.01
Neutral
57.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Positive. The current price of 5.17 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.72, and below the 200-day MA of 5.60, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NHTC.
Natural Health Trends Risk Analysis
Natural Health Trends disclosed 39 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 0 New Risks
Natural Health Trends Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.13B | 22.27 | 22.95% | ― | 13.13% | 56.75% | |
74 Outperform | $262.91M | 16.43 | 11.19% | ― | 1.36% | 114.50% | |
73 Outperform | $619.25M | 15.05 | 8.17% | ― | -7.10% | -8.45% | |
66 Neutral | $892.56M | 3.55 | -31.74% | ― | -1.37% | 75.47% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
55 Neutral | $154.11M | 72.67 | 1.02% | ― | -43.80% | -97.89% | |
55 Neutral | $58.14M | 101.41 | 1.54% | 15.47% | -2.19% | 0.60% |
* Consumer Cyclical Sector Average
Performance Comparison
NHTC
Natural Health Trends
5.17
-0.32
-5.83%
HLF
Herbalife
8.87
-0.33
-3.59%
LRN
Stride
123.22
62.04
101.41%
MED
Medifast
14.44
-25.22
-63.59%
NATR
Nature's Sunshine Products
14.57
-3.28
-18.38%
USNA
USANA Health
32.96
-15.62
-32.15%
Natural Health Trends Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 1.97% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with positive developments in the Greater China market and successful product launches, as well as improved cash flow and commitment to dividends. However, these were offset by stagnant overall sales, declines in key markets such as Taiwan and North America, and an increase in operating losses, leading to a decrease in net income.Highlights
Greater China Market Growth
Net sales in Greater China increased by 7% compared to the fourth quarter of 2023 and 9% compared to the preceding third quarter of 2024, indicating positive consumer response to programs and promotions.
Product Launch and Market Expansion
Introduced two new products in Hong Kong with plans for broader market rollouts. Additionally, officially opened the Colombia market for in-country order taking, expanding the company's global reach.
Cash Flow Improvement
Generated $602,000 in cash flows from operations during 2024, a $1.8 million improvement over the previous year.
Dividend Declaration
Declared a quarterly cash dividend of $0.20 per share, reinforcing the company's commitment to returning capital to stockholders.
Lowlights
Flat Overall Sales
Total fourth quarter revenue of $10.8 million was roughly unchanged from $10.9 million in the fourth quarter a year ago, indicating stagnant sales growth.
Revenue Declines in Taiwan and North America
Sales were adversely affected by decreases in Taiwan and North America due to strategic price adjustments and fewer product promotions throughout 2024.
Operating Loss
Reported an operating loss of $421,000 for the fourth quarter, compared to a loss of $242,000 in the same quarter last year.
Decline in Net Income
Net income for the fourth quarter decreased to $176,000 from $358,000 in the fourth quarter of 2023.
Company Guidance
During the fourth quarter of 2024, Natural Health Trends Corp reported steady performance with total revenue of $10.8 million, essentially unchanged from $10.9 million in the same period a year ago. In Greater China, net sales rose by 7% compared to Q4 of 2023, indicating positive reception to the company's programs and incentives. However, declines in Taiwan and North America, due to strategic price adjustments and fewer promotions, impacted overall results. The active member base decreased by 5% year-over-year to 30,870. Gross profit margin slightly decreased to 74.2%, while commissions expense increased to 41.9% of net sales. Despite an operating loss of $421,000, the company achieved a net income of $176,000, or $0.02 per diluted share, aided by interest income and a tax benefit. Cash and cash equivalents stood at $43.9 million, down from $46.3 million in September, primarily due to dividend payments. The board declared a $0.20 per share dividend, emphasizing commitment to returning capital to stockholders.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.