Usana Health Sciences Inc (NYSE: USNA)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0000896264
Market Cap 398.86 Mn
P/B 0.76
P/E 23.48
P/S 0.44
ROIC (Qtr) -26.63
Div Yield % 0.00
Rev 1y % (Qtr) 6.72
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

USANA Health Sciences, Inc., often recognized by its stock symbol USNA, operates in the direct-selling nutrition, personal health, and wellness industry. The company, established in 1992 by Myron W. Wentz, Ph.D., has built a reputation for developing and manufacturing high-quality, science-based nutritional, personal care, and skincare products. These products are designed to promote long-term health and wellness, and the company operates in 25 geographic markets worldwide. USANA's main business activities revolve around the production and direct...

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Investment thesis

Bull case

  • Operating cash flow of 31.52M provides exceptional 55.60x coverage of minority interest expenses 567000, showing strong core operations.
  • Operating cash flow of 31.52M provides exceptional 37.17x coverage of interest expenses 848000, showing strong debt service capability.
  • Cash position of 145.35M provides exceptional 256.35x coverage of minority interest expenses 567000, indicating strong liquidity.
  • Robust tangible asset base of 444.14M provides 3.05x coverage of working capital 145.40M, indicating strong operational backing.
  • Tangible assets of 444.14M provide robust 4.34x coverage of other current liabilities 102.44M, indicating strong asset backing.

Bear case

  • Operating cash flow of 31.52M barely covers its investment activities of (216.37M), with a coverage ratio of -0.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 145.35M provide limited coverage of acquisition spending of (202.47M), which is -0.72x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 31.52M shows concerning coverage of stock compensation expenses of 13.69M, with a 2.30 ratio indicating potential earnings quality issues.
  • Operating cash flow of 31.52M provides minimal 1.04x coverage of tax expenses of 30.22M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 48.06M show weak coverage of depreciation charges of 35.30M, with a 1.36 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.34 1.47
EV to Cash from Ops. EV/CFO 7.85 29.75
EV to Debt EV to Debt 0.00 27.85
EV to EBIT EV/EBIT 5.15 86.88
EV to EBITDA EV/EBITDA 3.21 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 13.24 -5.67
EV to Market Cap EV to Market Cap 0.62 1.15
EV to Revenue EV/Rev 0.27 7.32
Price to Book Value [P/B] P/B 0.76 8.48
Price to Earnings [P/E] P/E 23.48 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.76
Dividend per Basic Share Div per Share (Qtr) 0.00 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 22.76
Interest Coverage Int. cover (Qtr) 56.67 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.38 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.04 43.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -68.28 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -25.52 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -48.23 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -48.98 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -69.01 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -71.55 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.68 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.26 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 1.22 0.86
Current Ratio Curr Ratio (Qtr) 2.23 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 2.21
Interest Cover Ratio Int Coverage (Qtr) 56.67 6.64
Times Interest Earned Times Interest Earned (Qtr) 56.67 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.10 -919.13
EBIT Margin % EBIT Margin % (Qtr) 5.27 -1,474.87
EBT Margin % EBT Margin % (Qtr) 5.17 -1,537.76
Gross Margin % Gross Margin % (Qtr) 79.20 26.98
Net Profit Margin % Net Margin % (Qtr) 1.90 -1,538.60