Nu Skin Enterprises, Inc. : Bet on the recovery
 |
08/22/2012 | 09:44am
Opinion : Bullish above 40 USD
Target price : 50 USD
Stop loss: 39.8 USD
|
NYSE
Personal Products |
Nu Skin Enterprises, Inc. is a global direct selling company. The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region. The Company provides marketing and distribution of technology-based products through Big Planet, Inc.
From a fundamental viewpoint, the security has a low valuation with an EV/Sales ratio of 1.23x. By the year 2014, it seems that Nu Skin Enterprises, Inc. profitability could increase significantly. Indeed, net margin should be at 10.99% in 2014 against 10.21% for the current year. Sales are also expected to increase. To date, PER for 2012 is estimated at 13.09 and at 11.58 for 2013.
The area of the USD 40.22 support should enable the stock to have a new bullish trend. The long term support in this area confirms its relevance. Technically, above these levels, 4-traders analysts are optimistic and count on a return toward the short and mid-term resistances.
Investors can take a long position at current price in order to aim a return of bullish trend. First target is 20-50 days moving averages at USD 46 and then a return on the area of USD 50. Stop loss will be placed at USD 40.
 |
|
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
|
Valuation |
2013e |
2014e |
|
PER (Price / EPS)
|
14,5x |
12,7x |
|
Capitalization / Revenue
|
1,41x |
1,29x |
|
EV / Revenue
|
1,37x |
1,23x |
|
EV / EBITDA
|
7,96x |
6,91x |
|
Yield (DPS / Price)
|
1,95% |
2,12% |
| Profitability |
2013e |
2014e |
|
Operating Margin (EBIT / Sales)
|
15,7% |
16,1% |
|
operating laverage (Delta EBIT / Delta Sales)
|
0,97x |
1,35x |
|
Net Margin (Net Profit / Revenue)
|
9,96% |
10,2% |
|
ROA (Net Profit / Asset)
|
23,2% |
23,1% |
|
ROE (Net Profit / Equities)
|
38,2% |
34,8% |
|
Rate of Dividend
|
28,3% |
26,9% |
|
|
|
