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In a challenging market environment, USANA Health Sciences Inc (NYSE:USNA)’s stock has reached a 52-week low, dipping to $26.15. According to InvestingPro analysis, the stock appears undervalued at current levels, trading at just 12.4 times earnings and below book value with a Price/Book ratio of 0.93. The nutritional and dietary supplements company has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of 43.21%. Investors have shown concern as the company navigates through a period of decreased consumer spending and increased competition, factors that have pressured the stock to its current low point. Despite these challenges, USANA maintains impressive financial strength with an industry-leading gross margin of 81.13% and a healthy current ratio of 2.0, indicating strong operational efficiency and solid liquidity. The market will be watching closely to see if USANA can implement strategies to recover its stock value and reassure its stakeholders.
In other recent news, USANA Health Sciences reported fourth-quarter earnings for 2024 that exceeded analyst expectations, with earnings per share (EPS) of $0.64, surpassing the forecast of $0.49. The company also reported revenue of $214 million, outperforming the anticipated $208.84 million. Despite this strong performance, USANA’s guidance for fiscal year 2025 was not as optimistic, with projected earnings per share ranging from $2.35 to $3.00, below the consensus estimate of $2.87. The revenue forecast for FY2025 was set between $920 million and $1 billion, which only slightly exceeded the consensus estimate of $934.5 million.
The recent acquisition of Hiya Health Products contributed to the fourth-quarter results, and USANA expects Hiya’s revenue to grow significantly in 2025, projecting between $145 million and $160 million. Analysts from firms like Sidoti and Company and D.A. Davidson have shown interest in USANA’s promotional strategies and incentive programs, which are expected to expand in the latter half of 2025. USANA’s President and CEO, Jim Brown, expressed optimism about the company’s growth strategy, which includes launching over 20 new products in 2025.
USANA’s year-over-year financials showed challenges, with net sales for FY2024 down 7% to $855 million from $921 million in FY2023, and net earnings dropping by 34%. The company plans to enhance its direct selling model and improve its brand message to attract more associates. CFO Doug Hekking highlighted the inclusion of non-GAAP financial metrics to provide transparency following the Hiya acquisition. The company also ended the year with $182 million in cash reserves and plans to increase this by $50-$60 million in 2025.
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