Natural Health Trends Corp (NASDAQ: NHTC)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0000912061
Market Cap 46.69 Mn
P/B 1.43
P/E 1.94
P/S 0.33
ROIC (Qtr) -8.00
Div Yield % 6.40
Rev 1y % (Qtr) -11.36
Total Debt (Qtr) 2.17 Mn
Debt/Equity (Qtr) 0.08

About

Natural Health Trends Corp., a company listed on the NASDAQ Capital Market under the symbol NHTC, operates in the direct-selling and e-commerce industry. The company's main business activities involve the sale of personal care, wellness, and quality of life products under the NHT Global brand. Natural Health Trends Corp. generates revenue through the sale of its products, which are categorized into six distinct segments: wellness, herbal, beauty, lifestyle, home, and daily. These products are designed to meet specific wellness goals and are marketed...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 14.37M provide 14.50x coverage of short-term debt 991000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 42.25M provides 19.51x coverage of total debt 2.17M, indicating robust asset backing and low credit risk.
  • Tangible assets of 42.25M provide exceptional 7.03x coverage of deferred revenue 6.01M, showing strong service capability backing.
  • Short-term investments of 17.67M provide solid 1.39x coverage of other current liabilities 12.75M, indicating strong liquidity.
  • Cash reserves of 14.37M provide robust 0.97x coverage of current liabilities 14.76M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (4.95M) barely covers its investment activities of 5.56M, with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (4.95M) provides thin coverage of dividend payments of (9.21M) with a 0.54 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of (4.95M) provides insufficient coverage of deferred revenue obligations of 6.01M, which is -0.82x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.95M) shows concerning coverage of stock compensation expenses of 139000, with a -35.61 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.03M) provides weak coverage of capital expenditures of 83000, with a -60.64 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.04 1.64
EV to Cash from Ops. EV/CFO 0.04 10.76
EV to Debt EV to Debt 0.72 18.39
EV to EBIT EV/EBIT 0.06 20.59
EV to EBITDA EV/EBITDA 0.06 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 0.04 16.58
EV to Market Cap EV to Market Cap 0.03 -3.15
EV to Revenue EV/Rev 0.01 -4.05
Price to Book Value [P/B] P/B 1.43 5.50
Price to Earnings [P/E] P/E 1.94 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.01 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) -8,000.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.80 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -182.65 -3.46
Interest Coverage Int. cover (Qtr) 0.00 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -62.75 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.35 53.91
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -115.65 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -406.78 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) -116.11 8.33
EBT Growth (1y) % EBT 1y % (Qtr) -116.11 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) -114.29 13.44
FCF Growth (1y) % FCF 1y % (Qtr) -40.78 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.32 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.97 1.17
Cash Payout Ratio Cash Payout (Qtr) -1.89 -0.04
Cash Ratio Cash Ratio (Qtr) 0.97 2.14
Current Ratio Curr Ratio (Qtr) 2.57 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.52
Interest Cover Ratio Int Coverage (Qtr) 0.00 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 0.00 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.60 4.40
EBIT Margin % EBIT Margin % (Qtr) -0.44 -36.99
EBT Margin % EBT Margin % (Qtr) -0.44 -40.80
Gross Margin % Gross Margin % (Qtr) 73.90 44.74
Net Profit Margin % Net Margin % (Qtr) -0.30 -40.62