USANA Health Sciences, Inc. (USNA) is poised to capitalize on the growing consumer healthcare market, spurred by an increasing focus on self-medication and shifting consumer preferences. The global consumer healthcare market is expected to be valued at $322.93 billion by 2028, growing at a 7.2% CAGR.
Having established a strong presence in the global nutritional, personal care, and skin care space, USNA plans to expand into India in the second half of 2023, unlocking new long-term growth potential.
With this exciting prospect in view, let’s take a look at some of USNA’s key financial metrics.
USNA's Fluctuating Revenue, Margin, ROA & Asset Turnover
USNA's revenue has fluctuated over the past few years, with the latest available value being $998.6 million as of December 31, 2022. Compared to the initial value of $1.06 billion as of June 27, 2020, this represents a decline of 6.2%. In 2021, revenue steadily increased, peaking at $1.25 billion on July 3, 2021. However, the most recent values show a decrease in revenue.
USNA’s gross margin has fluctuated between 81% (January 2021) and 82.1% (June 2020) over the past two years. The most recent figure as of December 2022 is 80.6%, a 2.5% decrease since June 2020.
The ROA of USNA has fluctuated over the past two years. From June 2020 to October 2021, it hovered around 0.22, slightly increasing to 0.23 in July 2021. In January 2022, ROA decreased to 0.20 before dropping lower to 0.19 in April and continuing its descent until December 2022 at 0.12. Overall, there has been a decrease in ROA of 45.5% from June 2020 to December 2022.
The current ratio of USNA has shown some fluctuations over the past two years. From June 2020 to October 2021, the current ratio increased from 2.33 to 2.4, then decreased to 2.27 in January 2022.
Since then, the current ratio has increased, reaching a peak of 2.71 in October 2022, before decreasing slightly to 2.67 in December 2022. USNA's current ratio has grown by 15.3% since June 2020.
USNA's Share Price Soars 31% in 6 Months
USNA has been showing a consistent trend of increasing share prices since November 2022, with the share price growing from $51.16 on November 11, 2022, to $67.03 on May 4, 2023, an increase of more than $15.87 or approximately 31%.
The rate of growth has been accelerating over the past two months, with the share price increasing by $2.77 between April 28 and May 4, 2023. Here is a chart of USNA's price over the past 180 days.
USNA’s Consistent Quality, Value, and Sentiment Ratings
USNA has an overall POWR Ratings grade of A, translating to a Strong Buy, which is among the top grades on the POWR platform. It has been ranked #2 in the seven-stock Medical – Consumer Goods category for the past three months.
The POWR Ratings for USNA consistently perform excellently in the Quality, Value, and Sentiment dimensions from November 2022 to May 2023. The Quality rating remains at a maximum of 100 throughout this period, indicating exceptionally high assurance in the company's business practices.
Similarly, the Value rating remains close to the maximum at 97-99. The Sentiment rating fluctuates more but trends upwards from 37 in November 2022 to 90 in May 2023. In comparison, both Growth and Momentum ratings are fairly low, ranging from 8-21 and 8-12, respectively, over this period. Stability fluctuates slightly between 72 and 79.
How Does USANA Health Sciences Inc. (USNA) Stack Up Against its Peers?
Other stocks in the Medical - Consumer Goods sector that may be worth considering are Nature's Sunshine Products, Inc. (NATR), LifeVantage Corporation (LFVN), and Zynex, Inc. (ZYXI), which have A (Strong Buy) or B (Buy) rating.
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USNA shares were trading at $66.56 per share on Friday afternoon, down $0.52 (-0.78%). Year-to-date, USNA has gained 25.11%, versus a 7.80% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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