Company Overview
USANA Health Sciences, Inc. operates as a developer, manufacturer, and seller of science-based nutritional, personal care, and skincare products distributed across the Asia Pacific, the Americas, and Europe. The company functions within the Consumer Defensive sector, specifically under the Packaged Foods industry, a classification that typically implies products essential to daily life that tend to be less sensitive to economic downturns than discretionary spending categories. With a market capitalization of $317.27M and annual revenue of $925.26M, the organization supports a workforce of 1570 employees. These valuation and revenue figures indicate that the company maintains a significant operational footprint despite its relatively modest market capitalization, suggesting a business model where high revenue generation occurs alongside a specific valuation multiple often seen in niche consumer or direct-to-consumer markets.
Financial Health
The company reported a total revenue of $925.26M for the trailing twelve months, generating net income of $10.76M and an EBITDA of $83.42M. The substantial gap between the $925.26M in revenue and the $10.76M in net income reveals a cost structure where a large portion of top-line sales is consumed by operating expenses, resulting in a net income that is roughly 1.2% of total sales. Free cash flow stands at $36.85M, which indicates that the company generates sufficient cash from operations after capital expenditures to fund its activities without needing to raise external capital or take on significant new debt. The gross margin is reported at 78.3%, reflecting the high pricing power or low cost of goods relative to sales, while the operating margin sits at 7.6%, showing the efficiency of core business operations before interest and taxes, and the profit margin is 1.2%, which highlights the final profitability after all expenses. In terms of liquidity and leverage, the company holds $158.38M in cash against $31.96M in debt, resulting in a debt-to-equity ratio of 5.45, a metric that, while indicating a leveraged balance sheet on paper, is supported by a substantial cash cushion. The current ratio of 2.24 suggests that the company holds more than twice the assets required to cover its short-term liabilities, pointing to robust short-term liquidity. Return on Equity is 2.0% and Return on Assets is 4.3%, metrics that reveal the current level of management effectiveness in generating returns relative to the shareholders' equity and the total asset base, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 29.64, while the forward P/E is 6.21, a stark difference that implies the market is currently pricing in a significant expectation of future earnings growth that is not yet reflected in current profitability or is driven by a one-time event affecting the TTM net income. The price-to-book ratio stands at 0.59, indicating that the market values the company at less than its book value, which suggests no market premium over the net asset value and potentially a perception of undervaluation or challenges in earning power. Alternative valuation metrics include a price-to-sales ratio of 0.34 and an EV/EBITDA of 2.92, figures that suggest the stock is trading at a very low multiple relative to both sales and earnings before interest, taxes, depreciation, and amortization. The 52-week high is $38.32 and the 52-week low is $16.72, providing a clear range of historical volatility for the security. Based on the available data points, the current price position relative to this range cannot be precisely calculated without the real-time share price, but the wide spread between the high and low demonstrates significant price instability over the past year. The beta value is 0.64, which indicates that the stock is less volatile than the broader market, moving with 36% less intensity than the general market index.
Growth & Income
Revenue growth year over year is 5.9%, whereas earnings growth year over year is listed as N/A, implying that the specific metric for earnings growth is not currently available or disclosed in the standard reporting period. Because earnings growth data is unavailable, a direct comparison of whether earnings are growing faster or slower than revenue cannot be made using the provided figures, though the positive revenue growth suggests expanding sales volume or pricing. Regarding income distribution, the dividend yield is N/A and the payout ratio is 0.0%, indicating that the company does not currently distribute earnings to shareholders in the form of dividends. Consequently, the company reinvests all of its generated earnings back into the business for growth initiatives, research and development, or debt reduction rather than paying dividends. The overall growth and income profile is characterized by steady revenue expansion without the current support of a dividend yield, relying entirely on capital appreciation potential within the consumer defensive sector.