Nu Skin Operating Margin vs. Return On Asset

NUS Stock  USD 6.68  0.08  1.18%   
Considering Nu Skin's profitability and operating efficiency indicators, Nu Skin Enterprises may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in February. Profitability indicators assess Nu Skin's ability to earn profits and add value for shareholders.

Nu Skin Operating Profit Margin

0.0233

At this time, Nu Skin's Sales General And Administrative To Revenue is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is expected to grow to 0.11 this year, even though Price To Sales Ratio is projected to decline to 0.47. At this time, Nu Skin's Net Income Applicable To Common Shares is comparatively stable compared to the past year. Income Quality is expected to grow to 14.49 this year, even though Operating Income is projected to decline to slightly above 45.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.870.6893
Significantly Up
Slightly volatile
Net Profit Margin0.00410.0044
Notably Down
Slightly volatile
Operating Profit Margin0.02330.0245
Notably Down
Slightly volatile
Pretax Profit Margin0.01280.0135
Notably Down
Slightly volatile
Return On Assets0.00450.0048
Notably Down
Slightly volatile
Return On Equity0.00990.0105
Notably Down
Slightly volatile
For Nu Skin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nu Skin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nu Skin Enterprises utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nu Skin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nu Skin Enterprises over time as well as its relative position and ranking within its peers.
  

Nu Skin's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Personal Care Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nu Skin. If investors know NUS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nu Skin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.88)
Dividend Share
0.57
Earnings Share
(2.09)
Revenue Per Share
35.8
Quarterly Revenue Growth
(0.14)
The market value of Nu Skin Enterprises is measured differently than its book value, which is the value of NUS that is recorded on the company's balance sheet. Investors also form their own opinion of Nu Skin's value that differs from its market value or its book value, called intrinsic value, which is Nu Skin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nu Skin's market value can be influenced by many factors that don't directly affect Nu Skin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nu Skin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nu Skin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nu Skin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Nu Skin Enterprises Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nu Skin's current stock value. Our valuation model uses many indicators to compare Nu Skin value to that of its competitors to determine the firm's financial worth.
Nu Skin Enterprises is rated below average in operating margin category among its peers. It also is rated below average in return on asset category among its peers reporting about  1.31  of Return On Asset per Operating Margin. At this time, Nu Skin's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Nu Skin by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

NUS Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Nu Skin

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.04 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Nu Skin

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0555
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

NUS Return On Asset Comparison

Nu Skin is currently under evaluation in return on asset category among its peers.

Nu Skin Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nu Skin, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nu Skin will eventually generate negative long term returns. The profitability progress is the general direction of Nu Skin's change in net profit over the period of time. It can combine multiple indicators of Nu Skin, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-100 M-105 M
Operating Income48.3 M45.9 M
Income Before Tax26.6 M25.2 M
Total Other Income Expense Net-21.7 M-20.6 M
Net Income8.6 M8.2 M
Income Tax Expense18 M17.1 M
Net Income Applicable To Common Shares120.5 M135.7 M
Net Income From Continuing Ops58.5 M55.6 M
Non Operating Income Net Other-19.7 M-20.7 M
Interest Income15.5 M15.1 M
Change To Netincome-24.2 M-23 M
Net Income Per Share 0.17  0.16 
Income Quality 13.80  14.49 
Net Income Per E B T 0.32  0.52 

NUS Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nu Skin. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nu Skin position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nu Skin's important profitability drivers and their relationship over time.