USANA Health Sciences, Inc. (NYSE:USNA)

USANA Health Sciences Inc. (USNA) operates in the network-marketing industry (aka. multi-level marketing) and is headquartered in Salt Lake City, UT. With a long-term track record of solid management and consistent earnings growth, USANA last year made a sizable investment into China via the acquisition of Babycare. Although a relatively inexpensive foray into the Chinese market when compared to its larger competitors, Nuskin for instance spent well into 9-figures to access the market, the market has understandably responded uneasily to the impact of the acquisition on the Company's existing Hong Kong market, which has softened considerably over the last year. In addition, the Company experienced an exodus in its Executive Management ranks with the departure of the President, the CFO, the Senior VP of Sales, and VP of Finance in May 2011. The aggregate implications of these events injected uncertainty into the shares, and the price tumbled nearly 50% over the summer. With the positive news coming out of the Q3 Earnings Call, which included sizable share buy-backs and increased earnings and revenue guidance, the shares have gained back some of the ground they lost earlier this year. The shares have recently offered CAPS members tremendous value below $30 per share. We picked up shares over the last several months in our real dollar accounts at an average price of $25 per share. The Company has zero debt, has adopted a noticably more aggressive expansion strategy, and trades at roughly 10x's consensus analysts estimates for 2012 earnings. This is a unique industry which entails significant regulatory and operating risks. The Company's entrance into new markets presents risks which create greater-than-normal volatility in the price of the shares. Further, the Company has a higher effective tax rate than certain of its competitors, which affects after-tax cash-flow. However, our years of experience in senior financial management positions in this particular industry provides us with marked confidence in the Company's current position and future potential. Compare it to industry averages and less efficient competitors and USANA compares admirably in nearly ever respect. Although the shares represent a 33% discount to FMV now, they are a steal anywhere below $30. We look for the shares to rise 50% over the next 18 months, and to double over the next 2-3 years.

Excellent ROIC over lengthy period of time = over 20 for 10 years. Price/earnings of 10.88 is cheap, lowest p/e in almost 10 years. Debt/equity has been consistently low for last 10 years and is currently negligible. Healthcare company, based in Salt Lake City, Utah. Nutritional and personal care products, in business since 1992.

Analysis at http://sardineeater.blogspot.com/2011/09/eating-sardine-usana-health-sciences.html

Nice correction on Aug 2011. I'll go with it in Caps.

It is making a profit for many years, Integrety, They are the leading edge of Science, for Health and the best MLM company in any way. Fair the the first and the last in.

PE 10; cash flow yield is 13.5%. $32.7 million in cash and no debt. Growth opportunities in China with acquisition of BabyCare. TomE trading pick HGSTIY.

magic formula

USANA is a direct marketing firm that sells nutritional and personal care products, under the labels USANA Nutritionals and Sense, respectively. The bulk of the product lineup are vitamin supplements and skin/hair care. The company sells worldwide, with a significant presence in China and Southeast Asia. While I've been generally wary of direct marketing business models, the fact is that the others screened by MFI have performed very well (such as Nu Skin (NUS) and Pre-Paid Legal (PPD)). These consumer-based products also have the advantage of being a fairly stable source of cash flows.

USANA provides the best nutritional supplements, nutritional products and preservative-free skin care products available. Their integrity and science based approach assures they will lead the way into the future.

Great management. They recently opened China! I do not sell the product but I take it every day.

USNA is doing very well in the Philippine Market. An addition to 13 countries last year, 2009. This year, they have penetrated China through acquisition of BabyCareLtd. This brings their total market to 15 different countries world wide.

Apart from this, USNA has been buying back their own common shares and the price has been continually been appreciating. Technically, it has broken out of a bottom and is on its way to reaching its old high of 60USD.

SpecBear pick

Test. 5 seconds. Say USANA then name a shape.

If the shape is a pyramid, you pass.

Life changing products, Usana have been making a difference in peoples lives, all over the globe for 16 years.....Unstopping scientific research.....We will continue to share the vision of a world free of diseases. Thank you Dr. Wentz.

biotechnology is the future trend!

very sound products I have tried myself and well priced.
COmpany seems solid with high insider ownership and I know company business model too well to believe the already refuted rumours about accounting/stockoption enrichment issues.

At EPS of $2.3 $33 is pretty cheap given how unjustified the revenue and stock drop were.

Baby boomers aging will need lots of good nutritional supplements as they age and the AMA continues suggesting we take our vitamins and more health benefits are discovered alongside the weakness of our regular food.

My only regret: I missed buying at $24 by a few days when the falseness of accusations against USNA were already evident.

spec bear

qwertty

USANA's ratios show a lot of promise. The stock has dipped to one of it's all time lows but it's ratios have seemed to maintain their strength. Look for this stock to climb out of it's hole soon.