USANA Health Sciences Inc. Common Stock (USNA)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $37 million in annual free cash flow (10.4% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.05, providing financial flexibility

Concerns

• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

USANA Health Sciences Inc. Common Stock is a micro-cap consumer defensive company valued at $355 million. Revenue stands at $925 million, though the company is currently unprofitable. From a quality standpoint, USANA shows Altman Z-Score of 2.9 in the grey zone and modest 2% ROE. On valuation, the stock is trading at a premium 33.2x earnings, with a modest 1% margin of safety vs Graham Number. Growth dynamics show revenue growing at 5.9% and profit growth of -139.6%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $37 million in annual free cash flow (10.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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