Yahoo Finance Want To Invest In USANA Health Sciences Inc (NYSE:USNA)? Here’s How It Performed Lately
Assessing USANA Health Sciences Inc’s (NYSE:USNA) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess USNA’s recent performance announced on 30 June 2018 and evaluate these figures to its longer term trend and industry movements.
Check out our latest analysis for USANA Health Sciences
Was USNA’s recent earnings decline indicative of a tough track record?
USNA’s trailing twelve-month earnings (from 30 June 2018) of US$80.8m has declined by -16.4% compared to the previous year. Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.8%, indicating the rate at which USNA is growing has slowed down. What could be happening here? Let’s examine what’s transpiring with margins and whether the whole industry is facing the same headwind.
Revenue growth in the past few years, has been positive, however, earnings growth has not been able to catch up, meaning USANA Health Sciences has been ramping up its expenses by a lot more. This hurts margins and earnings, and is not a sustainable practice. Looking at growth from a sector-level, the US personal products industry has been growing its average earnings by double-digit 13.7% in the prior year, and 11.9% over the past half a decade. This growth is a median of profitable companies of 17 Personal Products companies in US including Natural Health Trends, Natural Alternatives International and Karex Berhad. This suggests that any tailwind the industry is benefiting from, USANA Health Sciences has not been able to leverage it as much as its industry peers.
In terms of returns from investment, USANA Health Sciences has fallen short of achieving a 20% return on equity (ROE), recording 18.8% instead. However, its return on assets (ROA) of 13.5% exceeds the US Personal Products industry of 11.3%, indicating USANA Health Sciences has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for USANA Health Sciences’s debt level, has declined over the past 3 years from 43.9% to 38.0%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. I suggest you continue to research USANA Health Sciences to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for USNA’s future growth? Take a look at our free research report of analyst consensus for USNA’s outlook.
Financial Health: Are USNA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
