Trade-Ideas: Natural Health Trends (NHTC) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Natural Health Trends ( NHTC) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Natural Health Trends as such a stock due to the following factors:

  • NHTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
  • NHTC has traded 62,568 shares today.
  • NHTC is up 4.5% today.
  • NHTC was down 10.5% yesterday.

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More details on NHTC:

Natural Health Trends Corp., a direct-selling and e-commerce company, provides wellness, beauty, and lifestyle products for consumers or business builders under the NHT Global brand name. The company manufactures and supplies its products through third parties. The stock currently has a dividend yield of 0.3%. NHTC has a PE ratio of 32.

The average volume for Natural Health Trends has been 369,300 shares per day over the past 30 days. Natural Health Trends has a market cap of $536.0 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of -0.25 and a short float of 4.8% with 0.85 days to cover. Shares are up 272.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Natural Health Trends as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • NHTC's very impressive revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues leaped by 75.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NHTC 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. To add to this, NHTC has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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, NATURAL HEALTH TRENDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for NATURAL HEALTH TRENDS CORP is currently very high, coming in at 78.06%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.55% is above that of the industry average.
  • Net operating cash flow has significantly increased by 99.87% to $16.56 million when compared to the same quarter last year. In addition, NATURAL HEALTH TRENDS CORP has also vastly surpassed the industry average cash flow growth rate of 18.41%.

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