NutriSystem

Dividend Yield: 8.10%

NutriSystem (NASDAQ: NTRI) shares currently have a dividend yield of 8.10%.

Nutrisystem, Inc., together with its subsidiaries, provides weight management products and services in the United States. The company offers nutritionally balanced weight loss programs designed for women, men, and seniors. The company has a P/E ratio of 216.50.

The average volume for NutriSystem has been 289,000 shares per day over the past 30 days. NutriSystem has a market cap of $247.9 million and is part of the diversified services industry. Shares are up 6% year to date as of the close of trading on Friday.

TheStreet Ratings rates NutriSystem as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 85.7% when compared to the same quarter one year prior, rising from -$4.48 million to -$0.64 million.
  • Net operating cash flow has increased to $22.40 million or 48.60% when compared to the same quarter last year. In addition, NUTRISYSTEM INC has also vastly surpassed the industry average cash flow growth rate of -13.17%.
  • NTRI 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
  • NTRI has underperformed the S&P 500 Index, declining 19.52% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, NUTRISYSTEM INC's return on equity significantly trails that of both the industry average and the S&P 500.

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Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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