USNA  Usana Health Sciences Inc.

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Specialty Chemicals

Market Cap.

1.49B

Vuru Grade

85.11/100

Current Price

$61.10
+0.45 (+0.74%)

Growth Price

$63.77
Fairly valued

Stability Price

$71.76
Undervalued by 17.44%

Company Metrics

  • P/E 15.87
  • P/S 1.45
  • P/B 3.9
  • EPS 3.85
  • Cash ROIC 65.89%
  • Cash Ratio 1.27
  • Dividend 0 / 0%
  • Avg. Vol. 131,889.00
  • Shares 24.39M
  • Market Cap. 1.49B

Company Description

USANA Health Sciences, Inc. develops, manufactures, distributes, and sells nutritional and personal care products worldwide. It offers two product lines, USANA Nutritionals and Sense. The USANA Nutritionals product line consists of essentials, which include vitamin and mineral supplements that provide a foundation of nutrition for various age groups; optimizers that are targeted supplements suppor... more


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

News

USANA Health Sciences' (USNA) CEO Kevin Guest on Q2 2017 Results - Earnings ...
Seeking Alpha - Jul 26, 2017
We appreciate you joining us this morning to review our second quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.
USANA Health Sciences Revises 2017 Outlook - Quick Facts - Nasdaq
USANA Health Sciences: Strong Moat, Highly Profitable And Growing Sales
Seeking Alpha - Jun 8, 2017
Founded by a world-class scientist while marketing its products via Olympians, Dr. Oz., and strong sales associates, USANA created the entrenched moats of brand recognition and product awareness.
The Real USANA Revealed
Seeking Alpha - Aug 1, 2017
Recent sell-off of USANA's stock shows Wall Street's lack of knowledge of the company and "multi-level marketing" or loss of trust in its promises.
USANA Health Sciences' (USNA) CEO Kevin Guest on Q1 2017 Results - Earnings ...
Seeking Alpha - May 3, 2017
Most of you are familiar with Doug and know that he has been with USANA since inception and has played a big part in our success over the years.
How USANA Health Sciences Inc's (USNA) 33% ROE Fares Against The Industry? - Simply Wall St
USANA Health Sciences' (USNA) CEO David Wentz on Q4 2016 Results - Earnings ...
Seeking Alpha - Feb 8, 2017
Good day and welcome to the USANA Health Sciences Fourth Quarter Conference Call. As a reminder, today's conference is being recorded.
USANA Health Sciences Inc. Stock Shares Stumble On Lower Earnings - Investing.com
USANA Health Sciences Inc. (USNA) announces fourth quarter financial results - TechNewsGazette
USANA Health Sciences shares drop after company misses earnings, cuts outlook
MarketWatch - Jul 25, 2017
USANA Health Sciences Inc. USNA, -0.49% shares dropped in the extended session Tuesday after the nutritional supplement company's earnings and outlook fell short of Wall Street estimates.
Usana: China Uncertainty Means It Should Be Avoided
Seeking Alpha - May 3, 2017
Usana discloses that it underwent a regulatory "provincial investigation" and asset freezes in China this year. The method with which these disclosures were made leaves a bad taste in our mouth.
USANA Health Sciences' China Subsidiary, BabyCare Ltd., Becomes an Official ...
PR Newswire (press release) - Feb 20, 2017
SALT LAKE CITY, Feb. 20, 2017 /PRNewswire/ -- USANA Health Sciences, a global nutritional company, announced today that its China subsidiary BabyCare Ltd.
Pdt Partners Has Boosted Usana Health Sciences (USNA) Holding; J2 Global Has 1 ...
UtahHerald.com - Oct 19, 2017
Pdt Partners Llc increased Usana Health Sciences Inc (USNA) stake by 41.62% reported in 2017Q2 SEC filing. Pdt Partners Llc acquired 7,200 shares as Usana Health Sciences Inc (USNA)'s stock rose 10.15%. The Pdt Partners Llc holds 24,500 shares with ...
Securities Analyst Recommendations: Alamo Group Inc. (ALG), USANA Health ... - Analyst Journal
USANA Health Sciences, Inc. (NYSE:USNA) Shares Bought by Fmr LLC - Dispatch Tribunal
Boom or Bust? Is there any value in USANA Health Sciences, Inc. (NYSE:USNA) or ...
Morgan Research - 5 hours ago
According to a recent spotcheck, company USANA Health Sciences, Inc. (NYSE:USNA) have been seen trading -1.29% away from the 50- day high.
TIAA CREF Investment Management LLC Has $7.57 Million Stake in USANA Health ... - StockNewsTimes
Waddell & Reed Financial Lifted Netease (NTES) Stake; Usana Health Sciences ... - Key Gazette
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for USNA 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 USNA'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.

$61.10 Current Price

$63.77 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: 13.69%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$71.76 Stability Price (EPV)

Undervalued by 17.44%


Discount Rate: 15.0%

$5.43 NCA Price

Overvalued by 91.11%

$94.86 Book Price

Undervalued by 55.26%


Excellent Cash Return on Invested Capital over the past 5 years

USNA has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

USNA has created $65.89 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 84.37M 90.84M 84.76M 87.74M 104.33M
divided by
Invested Capital 125.67M 126.61M 130.75M 148.62M 156.38M
Cash ROIC 67.14% 71.75% 64.83% 59.04% 66.72%

Excellent Return on Equity over the past 5 years

Over the past 5 years, USNA 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.

USNA has generated $32.78 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 66.43M 79.02M 76.64M 94.67M 100.04M
divided by
Stockholders' Equity 185.57M 260.52M 230.16M 280.85M 325.29M
Return on Equity 35.80% 30.33% 33.30% 33.71% 30.75%

Excellent Business Performance over the past 10 years

USNA has been able to maintain profitability in good times and bad. This could mean USNA 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.

USNA has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 30.96M 29.90M 28.34M 61.92M 59.47M 84.37M 90.84M 84.76M 87.74M 104.33M

Very Strong Balance Sheet

USNA has more Cash than its Total Liabilities, resulting in $1.25 Net Cash per share. In other words, if you buy USNA today, the price you're paying for shares is actually $59.85 because $1.25 of Cash is included in the current share price. This much Cash is very healthy. It can help USNA sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 12.87M 13.28M 13.66M 24.22M 50.35M 70.84M 145.99M 111.13M 143.21M 175.77M
Current Assets 45.99M 52.67M 51.93M 80.27M 106.06M 132.55M 229.05M 190.93M 244.26M 277.86M
Total Assets 109.13M 122.57M 123.44M 203.80M 244.50M 267.36M 368.47M 350.58M 423.24M 470.64M
Current Liabilities 40.19M 54.53M 40.48M 57.62M 59.70M 70.84M 95.87M 108.71M 131.41M 138.49M
Total Liabilities 70.49M 90.74M 49.07M 58.64M 70.59M 81.78M 107.95M 120.42M 142.39M 145.36M
Stockholder' Equity 38.64M 31.84M 74.37M 145.17M 173.91M 185.57M 260.52M 230.16M 280.85M 325.29M
Current Ratio 1.14 0.97 1.28 1.39 1.78 1.87 2.39 1.76 1.86 2.01
TL-to-TA 0.65 0.74 0.40 0.29 0.29 0.31 0.29 0.34 0.34 0.31

Consistent Reinvestment of Profits over the past 10 years

USNA has consistently retained profits. This may put USNA in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, USNA can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 30.11M 24.11M 56.41M 90.21M 118.80M 134.80M 200.02M 166.41M 214.88M 265.41M
Retained Earnings Growth - -19.93% 134.00% 59.91% 31.70% 13.47% 48.39% -16.81% 29.13% 23.52%

Competitive Industry over the past 10 years

USNA is likely operating in an industry with medium to low barriers to entry. This may mean that USNA 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 USNA invests heavily in R&D and Sales, General & Administrative expenses.

Only $9.41 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 45.32M 29.95M 33.56M 45.65M 50.75M 66.43M 79.02M 76.64M 94.67M 100.04M
divided by
Revenue 423.15M 429.01M 436.94M 517.64M 581.94M 648.73M 718.18M 790.47M 918.50M 1.01B
Net Profit Margin 10.71% 6.98% 7.68% 8.82% 8.72% 10.24% 11.00% 9.69% 10.31% 9.94%

Strong Pricing Power over the past 10 years

USNA 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.

$83.08 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
2007200820092010201120122013201420152016
Gross Profit 335.26M 340.13M 347.14M 422.16M 581.94M 532.92M 590.74M 649.68M 758.82M 825.89M
divided by
Revenue 423.15M 429.01M 436.94M 517.64M 581.94M 648.73M 718.18M 790.47M 918.50M 1.01B
Gross Margin 79.23% 79.28% 79.45% 81.55% 100.00% 82.15% 82.26% 82.19% 82.61% 82.09%

Medium Capital Intensity over the past 10 years

USNA 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.

26.13% 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
2007200820092010201120122013201420152016
Capital Expenditure 26.26M 16.06M 4.13M 4.19M 10.64M 8.43M 8.05M 20.42M 23.73M 32.70M
divided by
Net Income 45.32M 29.95M 33.56M 45.65M 50.75M 66.43M 79.02M 76.64M 94.67M 100.04M
Capital Expenditure Ratio 57.96% 53.63% 12.30% 9.18% 20.97% 12.69% 10.19% 26.65% 25.06% 32.68%

No Dividend History over the past 10 years

USNA has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 17.21M 16.16M 15.43M 15.94M 15.57M 14.92M 14.20M 13.69M 13.18M 25.05M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 36.96 33.96 32.22 43.50 30.37 31.60 78.15 103.31 129.29 61.20
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

USNA has a strong 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
2007200820092010201120122013201420152016
Shares Outstanding 17.21M 16.16M 15.43M 15.94M 15.57M 14.92M 14.20M 13.69M 13.18M 25.05M
Stock Bought Back - 6.45% 4.74% -3.20% 2.36% 4.36% 5.06% 3.76% 3.89% -47.39%
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Discussion
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1
Posted by pbanik  (on August 20, 2014)
@Alexroi You will be probably interested in this article I found on Yahoo! Finance.

Lifshitz & Miller Law Firm Announces Investigation of Bally Technologies, Inc., NetSol Technologies, Inc., NeuStar, Inc., Trulia, Inc., URS Corporation, and USANA Health Sciences Inc.
http://finance.yahoo.com/news/lifshitz-miller-law-firm-announces-031600064.html

Here's the part of the article that deals with USNA.
USANA Health Sciences Inc.

Lifshitz & Miller announces an investigation into possible claims against the board of directors of USANA Health Sciences Inc. ("USNA"). On July 15, 2014, a Citron Research report stated that nearly one third of USANA's revenue and half of its revenue growth rest on widespread illegal multi-level marketing in China.

For information about our investigation, please contact Joshua M. Lifshitz, Esq. by telephone at (516) 493-9780 or by sending an e-mail including your contact information to: info@jlclasslaw.com.

ATTORNEY ADVERTISING. © 2014 Lifshitz & Miller. The law firm responsible for this advertisement is Lifshitz & Miller, 821 Franklin Avenue, Suite 209, Garden City, New York 11530, Tel: (516) 493-9780. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact:

Joshua M. Lifshitz, Esq.
Lifshitz & Miller
Phone: 516-493-9780
Facsimile: 516-280-7376
Email: info@jlclasslaw.com
0
Posted by Alexleroi  (on February 2, 2013)
Pyramid Scheme! Inflated product prices.