Nature's Sunshine Products Inc. Common Stock (NATR)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $33 million in annual free cash flow (7.0% yield on market cap)
• Solid return on equity of 12.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.12, providing financial flexibility
• Altman Z-Score of 4.3 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($15) with negative 81% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Nature's Sunshine Products Inc. Common Stock is a micro-cap consumer defensive company valued at $471 million. The business generates $480 million in annual revenue with a 0.9% net margin and $33 million in free cash flow. From a quality standpoint, Nature's shows healthy Altman Z-Score of 4.3 and adequate 13% ROE. On valuation, the stock is trading at a premium 25.3x earnings, with trades above its Graham Number with a negative 81% margin. Growth dynamics show revenue growing at 4.7% and profit growth of 1379.4%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $33 million in annual free cash flow (7.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer