NEW YORK (TheStreet) -- Shares of Nature's Sunshine Products Inc. (NATR) - Get Nature's Sunshine Products, Inc. Report are up 13.4% to $17.77 after it inked a deal with Fosun Pharma in which the joint venture will distribute and market Nature's Sunshine and Synergy products in China.
As part of the agreement, Fosun Pharma will acquire a stake of approximately 15% of Nature's Sunshine outstanding common shares.
The launch of the joint venture is subject to customary conditions, including regulatory approvals by the Chinese government.
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Separately, TheStreet Ratings team rates NATURES SUNSHINE PRODS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATURES SUNSHINE PRODS INC (NATR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 98.7% when compared to the same quarter one year prior, rising from $4.86 million to $9.67 million.
- NATR's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, 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 77.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.09% is above that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Personal Products industry and the overall market on the basis of return on equity, NATURES SUNSHINE PRODS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: NATR Ratings Report