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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Nu Skin Enterprises, Inc. (NYSE:NUS), it is a financially-robust company with a an impressive history superior dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Nu Skin Enterprises here.
Established dividend payer and good value
NUS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that NUS has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. NUS's has produced operating cash levels of 0.38x total debt over the past year, which implies that NUS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. NUS is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if NUS's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the personal products industry, NUS is also trading below its peers, relative to earnings generated. This supports the theory that NUS is potentially underpriced.
For those seeking income streams from their portfolio, NUS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.
For Nu Skin Enterprises, there are three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for NUS’s future growth? Take a look at our free research report of analyst consensus for NUS’s outlook.
- Historical Performance: What has NUS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NUS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.