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NEW YORK (TheStreet) -- Natures Sunshine Prods (NATR) - Get Nature's Sunshine Products, Inc. Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates NATURES SUNSHINE PRODS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATURES SUNSHINE PRODS INC (NATR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NATR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for NATURES SUNSHINE PRODS INC is currently very high, coming in at 73.96%. Regardless of NATR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NATR's net profit margin of -4.49% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to $0.64 million or 91.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 311.4% when compared to the same quarter one year ago, falling from $1.84 million to -$3.90 million.
- You can view the full analysis from the report here: NATR Ratings Report