One-glance verdict
Undervalued
$39.78 our estimate vs market $16.38
Wall Street consensus: $34.50 (-13.3% lower than our fair-value estimate)
59% below our estimate, below the bear case
Fundamentals snapshot
Nature's Sunshine Products, Inc.
NATR · NCM · Consumer Defensive · Packaged Foods
Current price
$16.38
52-week range
$12.97 - $28.14
Market cap
$288.04M
Balance sheet
Healthy
252.48x Strong cushion
Net cash $65.15M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.5% last year.
- Reward Returns 12.4% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Insider ownership is only 3.1% (peer median: 5.0%).
What this company does
Nature's Sunshine Products, Inc.
Nature's Sunshine Products is a global health and wellness company that sells vitamins, supplements, and personal care items like toothpaste and lotions. The company primarily makes money through a direct-selling model, where a network of independent salespeople sells products directly to customers instead of through retail stores. This means the company's financial success is closely tied to its ability to recruit, train, and motivate these individual sellers around the world.
How the company got here
Nature's Sunshine Products started in 1972 when its founders, Gene and Kristine Hughes, began putting herbs into capsules by hand at their kitchen table. This simple idea was revolutionary at the time and helped create the modern nutritional supplement industry. The company grew from a small family business into a global operation, selling its products through a network of independent distributors. A key part of its journey has been its commitment to manufacturing its own products to control quality, which it has done since its early days.
What it actually does
The company makes and sells a wide variety of health and wellness products that you might see in a health food store or pharmacy. This includes vitamins, minerals, and herbal supplements for things like immune system support, digestion, and heart health. They also offer personal care items like skin cleansers, shampoos, and toothpaste, as well as products for managing weight. The company sells these items under two main brand names: Nature's Sunshine and Synergy WorldWide.
Nature's Sunshine Products & Synergy WorldWide
The company operates as one main business focused on selling nutritional and personal care products. It reaches customers through a model called multi-level marketing or direct selling, where independent people sell products to consumers and earn commissions (a percentage of the sales). These sellers, sometimes called consultants or distributors, include health practitioners like chiropractors as well as individuals who use and recommend the products. While it operates globally in regions like Asia, Europe, and the Americas, it reports as a single business organized around this direct-selling model.
What management is betting on now
The company is focused on modernizing its brand and making it more relevant to today's shoppers. A major part of this strategy is a "Digital First" approach, which involves improving its website and providing digital tools to its network of sellers to help them reach more customers online. They are also investing in sustainability, such as converting their manufacturing facility to be 100% solar-powered, to appeal to consumers who value environmentally friendly practices. The overall goal is to attract new customers and re-energize their existing base of distributors through these updated strategies.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.88M
FY2024 Q4
$9.99M
FY2025 Q1
$1.50M
FY2025 Q2
$2.99M
FY2025 Q3
$16.79M
FY2025 Q4
$7.56M
FY2026 Q1
$-4.33M
FY2026 Q2
$-1.94M
Revenue
$116.98M
Net income
$3.54M
Diluted EPS
0.19
Operating cash flow
$835.00K
Free cash flow
$-1.94M
Fetching…
Sources
Revenue
$122.89M
Net income
$5.12M
Diluted EPS
0.29
Operating cash flow
$-1.85M
Free cash flow
$-4.33M
Fetching…
Sources
Revenue
$123.81M
Net income
$4.11M
Diluted EPS
0.23
Operating cash flow
$9.90M
Free cash flow
$7.56M
Fetching…
Sources
Revenue
$128.34M
Net income
$5.33M
Diluted EPS
0.30
Operating cash flow
$18.47M
Free cash flow
$16.79M
Fetching…
Sources
Revenue
$114.75M
Net income
$5.33M
Diluted EPS
0.28
Operating cash flow
$4.34M
Free cash flow
$2.99M
Fetching…
Sources
Revenue
$113.25M
Net income
$4.75M
Diluted EPS
0.25
Operating cash flow
$2.61M
Free cash flow
$1.50M
Fetching…
Sources
Revenue
$118.20M
Net income
$-321.00K
Diluted EPS
-0.02
Operating cash flow
$12.18M
Free cash flow
$9.99M
Fetching…
Sources
Revenue
$114.61M
Net income
$4.35M
Diluted EPS
0.23
Operating cash flow
$9.62M
Free cash flow
$7.88M
Fetching…
Sources
Is it cheap or expensive?
Fair value $39.78 vs current price $16.38
Wall Street consensus is the average analyst price target: $34.50 (-13.3% lower than our fair-value estimate).
Our most-likely fair value is $39.78 a share — about 142.9% above today's price of $16.38, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $65.1M - more cash than debt. Interest coverage 252.5x.
Net debt
$-65.15M
Interest coverage
252.48x
Nature's Sunshine Products, Inc.'s profit covers its interest bill about 252.5 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NATR
BASELINE
Nature's Sunshine Products, Inc.
Total debt $22.43M Interest coverage 252.48x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage 60.41x -76% vs NATR Carries about 4.2x less debt cushion than NATR.
Total debt $2.20B Interest coverage 2.24x -99% vs NATR Carries about 112.5x less debt cushion than NATR.
Total debt $303.25M Interest coverage 6.52x -97% vs NATR Carries about 38.8x less debt cushion than NATR.
Total debt $27.62M Interest coverage -20.28x -100% vs NATR This peer has almost no interest-payment cushion compared with NATR.
Total debt $448.46M Interest coverage 9.40x -96% vs NATR Carries about 26.8x less debt cushion than NATR.
What you should know
The case for and against NATR
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.5% last year.
-
Returns 12.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 3.1% (peer median: 5.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.61x
Forward P/E
11.87x
P/B
1.72x
P/S
0.59x
EV/EBITDA
7.02x
PEG ratio
2.00x
Profitability
How much profit each dollar creates
Gross margin
72.7%
Operating margin
7.8%
Net margin
4.1%
ROE
12.4%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
2.50x
Quick ratio
1.40x
Total debt
$22.43M
Total cash
$87.58M
Growth
How the business has been compounding
Revenue TTM
$492.02M
Revenue 5Y CAGR
2.0%
EPS TTM
0.88
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$27.36M
Free CF TTM
$28.84M
FCF margin
5.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2021-03-26