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Nu Skin Enterprises Inc
NUS : NYSE : Consumer Goods
$43.55 | %
Today's Range: 41.52 - 43.69
Avg. Daily Volume: 1,541,600
12/19/14 - 4:09 PM ET

Financial Analysis


NU SKIN ENTERPRISES's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. NU SKIN ENTERPRISES has weak liquidity. Currently, the Quick Ratio is 0.55 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 26.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)638.8908.3
EBITDA ($mil)118.92176.77
EBIT ($mil)104.96168.28
Net Income ($mil)68.31110.9


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)207.17565.6
Total Assets ($mil)1573.251688.49
Total Debt ($mil)188.71189.17
Equity ($mil)939.41742.43


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin85.0885.54
EBITDA Margin18.6119.46
Operating Margin16.4318.53
Sales Turnover1.921.6
Return on Assets17.0317.69
Return on Equity28.5240.25
Debt Q3 FY14 Q3 FY13
Current Ratio1.791.43
Debt/Capital0.170.2
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)59.358.5
Div / share0.350.3
EPS1.121.8
Book value / share15.8412.69
Institutional Own % n/a n/a
Avg Daily Volume1534167.01467209.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 24.30 for the Personal Products industry and a discount compared to the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 2.71 indicates valuation on par with the S&P 500 average of 2.73 and a significant discount versus the industry average of 6.48. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, NU SKIN ENTERPRISES proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NUS 9.85 Peers 24.30   NUS NM Peers 14.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

NUS is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NUS's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NUS 10.60 Peers 21.38   NUS NM Peers 0.98

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NUS is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

NUS's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NUS 2.71 Peers 6.48   NUS -10.84 Peers -48.35

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NUS is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

NUS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NUS 0.84 Peers 1.93   NUS 11.31 Peers 6.04

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NUS is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

NUS has a sales growth rate that significantly exceeds its peers.

 

 

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