NTRI  Nutrisystem Inc

Exchange

NASDAQ

Sector

Consumer Services

Industry

Catalog/Specialty Distribution

Market Cap.

1.12B

Vuru Grade

54.02/100

Current Price

$38.15
+1.15 (+3.11%)

Growth Price

$6.61
Overvalued by 82.69%

Stability Price

$14.37
Overvalued by 62.33%

Company Metrics

  • P/E 37
  • P/S 2.06
  • P/B 12.47
  • EPS 1.03
  • Cash ROIC 68.17%
  • Cash Ratio 0.27
  • Dividend 0.7 / 1.87%
  • Avg. Vol. 206,924.00
  • Shares 29.36M
  • Market Cap. 1.12B

Company Description

Nutrisystem, Inc. provides weight management products and services primarily in the United States and Canada. The company's weight management program principally comprises a pre-packaged food program, online tools, and counseling. It offers weight-loss programs based on nutritious, portion-controlled, and lower Glycemic Index prepared meals. The company also provides monthly food packages comprisi... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

NutriSystem Inc (NTRI) Breaks into New 52-Week High on February 24 Session
Equities.com - Feb 24, 2017
Shares of NutriSystem Inc (NTRI) broke into a new 52-week high yesterday, hitting a peak of $38.40. Shares closed at $38.15 after opening at $36.95 for a move of 3.11%.
Nutrisystem, Inc. (NTRI)
Yahoo Finance - Apr 9, 2014
Nutrisystem, Inc. , a leading provider of weight management products and services including Nutrisystem® and South Beach Diet® brands, today announced that it will report its fourth quarter and full year 2016 financial results after the market close on ...
Nutrisystem: Still Attractive
Seeking Alpha - Jan 24, 2017
Nutrisystem (NASDAQ:NTRI) had a spectacular run last year with annual returns of ~67.8%. In comparison, its competitor, Medifast (NYSE:MED) earned a slightly lower but still impressive 45.6%, whereas Weight Watchers International (NYSE:WTW) and ...
Swiss National Bank Lowers Position in Nutrisystem Inc. (NTRI) - Sports Perspectives
Nutrisystem Inc. (NTRI) Receives Consensus Recommendation of “Buy” from Analysts - Community Financial News
NutriSystem Inc (NTRI) Breaks into New 52-Week High on February 22 Session
Equities.com - Feb 22, 2017
Shares of NutriSystem Inc (NTRI) broke into a new 52-week high yesterday, hitting a peak of $37.90. Shares closed at $37.50 after opening at $37.65 for a move of -0.53%.
NutriSystem Inc. (NTRI) Scheduled to Post Quarterly Earnings on Monday - BNB Daily (blog)
To Buy Or Sell NutriSystem Inc (NASDAQ:NTRI) On Latest Analyst Consensus - Fiscal Standard
NutriSystem Inc (NTRI) Moves Higher on Volume Spike for February 17
Equities.com - Feb 17, 2017
NutriSystem Inc (NTRI) traded on unusually high volume on Feb. 17, as the stock gained 1.82% to close at $36.45. On the day, NutriSystem Inc saw 298,790 shares trade hands on 2,773 trades. Considering that the stock averages only a daily volume of ...
The UBS Asset Management Americas Inc. Has $380000 Position in NutriSystem Inc ... - DailyQuint
NutriSystem Inc (NASDAQ:NTRI) Valuation According To Analysts - UK Market News
NutriSystem Inc (NTRI) Moves Higher on Volume Spike for January 27
Equities.com - Jan 27, 2017
NutriSystem Inc (NTRI) traded on unusually high volume on Jan. 27, as the stock gained 1.09% to close at $32.60. On the day, NutriSystem Inc saw 418,725 shares trade hands on 3,261 trades. Considering that the stock averages only a daily volume of ...
NutriSystem Inc (NASDAQ:NTRI) Price-to-Earnings-Growth Ratio At 2.05 - Equities Focus
NutriSystem Inc (NTRI) PT Set at $40.00 by Craig Hallum - Sports Perspectives
Nutrisystem, Inc. to Report Fourth Quarter and Full Year 2016 Financial ...
Business Wire (press release) - Feb 2, 2017
FORT WASHINGTON, Pa.--(BUSINESS WIRE)--Nutrisystem, Inc. (NASDAQ:NTRI), a leading provider of weight management products and services including Nutrisystem® and South Beach Diet® brands, today announced that it will report its fourth quarter ...
Stock Returns: Blue Nile Inc (NASDAQ:NILE) versus Nutrisystem Inc (NASDAQ:NTRI) - CML News
Craig Hallum Analysts Give NutriSystem Inc (NTRI) a $40.00 Price Target - Community Financial News
Nutrisystem's Valuation Looks Dangerously Reliant On South Beach
Seeking Alpha - Nov 29, 2016
But recent post-election gains seem a little aggressive - and so does a valuation of about 27x 2016 EPS plush cash. It's a good story, but I still question whether NTRI is benefiting from low-hanging fruit.
Stock Returns: Nutrisystem Inc (NASDAQ:NTRI) versus Overstock.com Inc (NASDAQ ...
CML News - Feb 14, 2017
This is a snapshot to compare the stock returns for Nutrisystem Inc (NASDAQ:NTRI) versus Overstock.com Inc (NASDAQ:OSTK) . The stock return points we compare look at the last three-months, six-months and twelve-months.
NutriSystem Inc (NASDAQ:NTRI) PEG Ratio At 2.03 - Equities Focus
Nutrisystem Awards Scholarships to 2016 Girl Talk National Leaders of the Year
Business Wire (press release) - Aug 15, 2016
BUSINESS WIRE)--Nutrisystem, Inc. (NASDAQ: NTRI), a leading provider of weight loss management products and services, announced today that it has awarded scholarships to Girl Talk's (mygirltalk.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NTRI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NTRI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$38.15 Current Price

$6.61 Growth Price (DCF)

Overvalued by 82.69%


Growth Rate Assumed by Market: 39.87%


Future Free Cash Flow Growth Rate: -12.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.37 Stability Price (EPV)

Overvalued by 62.33%


Discount Rate: 15.0%

$0.58 NCA Price

Overvalued by 98.49%

$16.87 Book Price

Overvalued by 55.79%


Varying Cash Return on Invested Capital over the past 5 years

NTRI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

NTRI has created $68.17 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 39.29M 13.19M 27.77M 24.54M 31.17M
divided by
Invested Capital 52.09M 44.24M 28.95M 28.98M 56.70M
Cash ROIC 75.43% 29.81% 95.92% 84.69% 54.97%

Excellent Return on Equity over the past 5 years

Over the past 5 years, NTRI has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

NTRI has generated $19.60 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 12.26M -2.81M 7.37M 19.31M 26.14M
divided by
Stockholders' Equity 74.96M 60.11M 52.16M 55.52M 69.93M
Return on Equity 16.36% -4.67% 14.13% 34.79% 37.39%

Excellent Business Performance over the past 10 years

NTRI has been able to maintain profitability in good times and bad. This could mean NTRI has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

NTRI has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 59.73M 89.52M 80.67M 49.11M 47.02M 39.29M 13.19M 27.77M 24.54M 31.17M

Good Balance Sheet

NTRI's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 82.25M 42.45M 38.31M 62.52M 41.22M 57.61M 19.39M 26.32M 29.25M 15.51M
Current Assets 185.78M 159.40M 120.80M 143.62M 113.68M 116.90M 66.18M 69.28M 76.50M 76.88M
Total Assets 197.87M 198.56M 159.47M 170.79M 149.95M 150.35M 98.41M 102.78M 109.89M 129.89M
Current Liabilities 51.73M 56.05M 42.35M 40.27M 39.66M 40.66M 34.77M 47.51M 51.67M 57.68M
Total Liabilities 52.57M 57.06M 43.65M 41.82M 74.98M 75.40M 38.30M 50.63M 54.38M 59.97M
Stockholder' Equity 145.30M 141.50M 115.83M 128.96M 74.98M 74.96M 60.11M 52.16M 55.52M 69.93M
Current Ratio 3.59 2.84 2.85 3.57 2.87 2.87 1.90 1.46 1.48 1.33
TL-to-TA 0.27 0.29 0.27 0.24 0.50 0.50 0.39 0.49 0.49 0.46

Low or No Reinvestment of Profits over the past 10 years

NTRI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NTRI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 84.91M 141.45M 115.77M 122.50M 71.99M 64.93M 42.25M 29.61M 28.55M 34.19M
Retained Earnings Growth - 66.59% -18.16% 5.81% -41.23% -9.81% -34.92% -29.92% -3.58% 19.75%

Competitive Industry over the past 10 years

NTRI is likely operating in an industry with medium to low barriers to entry. This may mean that NTRI doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that NTRI invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.20 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 85.13M 104.15M 46.25M 28.79M 33.64M 12.26M -2.81M 7.37M 19.31M 26.14M
divided by
Revenue 568.21M 776.77M 687.74M 527.73M 509.52M 401.34M 396.88M 358.09M 403.08M 462.61M
Net Profit Margin 14.98% 13.41% 6.73% 5.46% 6.60% 3.06% -0.71% 2.06% 4.79% 5.65%

Strong Pricing Power over the past 10 years

NTRI has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$51.34 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 296.81M 412.89M 349.08M 284.04M 284.71M 202.93M 183.78M 173.88M 204.03M 238.03M
divided by
Revenue 568.21M 776.77M 687.74M 527.73M 509.52M 401.34M 396.88M 358.09M 403.08M 462.61M
Gross Margin 52.24% 53.16% 50.76% 53.82% 55.88% 50.56% 46.31% 48.56% 50.62% 51.45%

Medium Capital Intensity over the past 10 years

NTRI has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

43.62% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 5.91M 18.70M 11.62M 8.35M 19.59M 8.04M 9.60M 7.61M 8.27M -
divided by
Net Income 85.13M 104.15M 46.25M 28.79M 33.64M 12.26M -2.81M 7.37M 19.31M 26.14M
Capital Expenditure Ratio 6.94% 17.96% 25.13% 29.01% 58.25% 65.58% -342.28% 103.31% 42.80% -

Strong Dividend History over the past 10 years

NTRI has consistently distributed a dividend for the past 8 years. This suggests NTRI is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - 16.25M 21.42M 20.66M 19.32M 19.87M 20.01M 20.37M 20.50M
divided by
Shares Outstanding 37.12M 35.17M 31.17M 29.77M 28.69M 27.33M 27.50M 28.29M 28.79M 29.18M
Dividend Paid Per Share - - 0.52 0.72 0.72 0.71 0.72 0.71 0.71 0.70
Price at Year End 53.68 23.79 12.54 28.20 20.28 12.93 7.87 16.81 19.58 21.70
Dividend Yield - - 4.16% 2.55% 3.55% 5.47% 9.18% 4.21% 3.61% 3.24%

History of Stock Buybacks over the past 10 years

NTRI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 37.12M 35.17M 31.17M 29.77M 28.69M 27.33M 27.50M 28.29M 28.79M 29.18M
Stock Bought Back - 5.55% 12.83% 4.71% 3.78% 4.98% -0.63% -2.79% -1.74% -1.33%
Share your thoughts about NTRI

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!