Download PDF

1. Company Snapshot

1.a. Company Description

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand.The company offers wellness products, including liquid, encapsulated, tableted, and powder dietary and nutritional supplements, as well as vitamins and minerals; and herbal products comprising herbal supplements.It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements.


In addition, the company offers home appliances; daily products, such as oral care, hair care, and body care; and home appliances products.It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, Vietnam, South Korea, Japan, India, Russia, Kazakhstan, and Europe.The company was formerly known as Florida Institute of Massage Therapy, Inc.


and changed its name to Natural Health Trends Corp.in June 1993.Natural Health Trends Corp.


was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

Show Full description

1.b. Last Insights on NHTC

Natural Health Trends Corp.'s recent performance was negatively impacted by a decline in sales, although specific figures are not provided. The company's Q3 2025 earnings call and financial results announcement on November 5, 2025, may have contributed to investor uncertainty. According to the company's announcement on October 29, 2025, Chris Sharng and Scott Davidson will discuss the financial results, potentially addressing challenges in the direct-selling and e-commerce sectors. A thorough analysis of the earnings call transcript is needed to identify specific business condition changes.

1.c. Company Highlights

2. Natural Health Trends Corp. Navigates Through Challenging Environment

Natural Health Trends Corp. reported its second-quarter 2025 earnings, with net sales of $9.8 million, a 6% decrease from the same period in 2024. The company's gross profit margin was 73.9%, relatively consistent with the previous year. However, commissions expense as a percent of total sales was 40.9%, increasing due to higher weekly commissions earned by members. This led to an operating loss of $333,000, and net income totaled $15,000 or breakeven per diluted share, compared to $173,000 or $0.02 per diluted share in the second quarter of 2024. The actual EPS came out at $0.01414, significantly lower than estimates at $0.2.

Publication Date: Jul -30

📋 Highlights
  • Net Sales Decline: $9.8 million, down 6% year-over-year due to economic uncertainty and trade tensions.
  • Gross Profit Margin: 73.9%, consistent with the previous year despite external challenges.
  • Operating Loss: $333,000 compared to a $173,000 net income in Q2 2024.
  • Cash Flow: $5.2 million used in net cash from operating activities during the first six months of 2025.
  • Dividend: $0.20 per share declared, reflecting confidence in financial stability.

Financial Performance

The company's financial performance was impacted by economic uncertainty and trade tensions, particularly in its largest market. The transition of its US-based supply chain to Asia aims to reduce exposure to unpredictable tariffs and lower logistics costs. The company used $5.2 million in net cash from operating activities during the first six months of 2025. Total cash, cash equivalents, and marketable securities were $34.2 million at June 30.

Valuation and Dividend

The Board of Directors declared a cash dividend of $0.20 per share, payable on August 22. At current prices, the dividend yield stands at 17.32%. The valuation metrics suggest that the stock may be overvalued, with a P/E Ratio of 104.87 and a P/S Ratio of 1.24. The EV/EBITDA ratio is negative at -28.71, indicating that the company's EBITDA is not covering its enterprise value.

Future Outlook

Despite near-term pressures, the company's long-term fundamentals remain strong. The company remains focused on executing its strategic priorities, investing in brand programs, product innovation, and digital enhancements to drive recovery and future growth. Analysts estimate next year's revenue growth at None%, indicating a potential for improvement. As the company continues to navigate through the challenging environment, its ability to adapt and innovate will be crucial for future success.

3. NewsRoom

Card image cap

Natural Health Stock Down Following Mixed Q3 Earnings & Restructuring

Nov -10

Source: zacks.com

Card image cap

Natural Health Trends Corp. (NHTC) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -05

Source: seekingalpha.com

Card image cap

Natural Health Trends to Report Third Quarter 2025 Financial Results on November 5th

Oct -29

Source: globenewswire.com

Card image cap

NHTC Stock Gains Despite Decline in Q2 Earnings, Gross Margin Down

Aug -04

Source: zacks.com

Card image cap

Natural Health Trends Corp. (NHTC) Q2 2025 Earnings Call Transcript

Jul -30

Source: seekingalpha.com

Card image cap

Natural Health Trends Reports Second Quarter 2025 Financial Results

Jul -30

Source: globenewswire.com

Card image cap

Natural Health Trends to Report Second Quarter 2025 Financial Results on July 30th

Jul -23

Source: globenewswire.com

Card image cap

NHTC Stock Gains After Q1 Earnings, Operating Loss Narrows

May -05

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.32%)

6. Segments

Natural Health Products

Expected Growth: 8.5%

Growing demand for natural and organic products, increasing awareness of healthy living, and rising disposable income drive the growth of Natural Health Products. Expanding product lines and online presence also contribute to the segment's growth.

Administrative Fees Freight and Other

Expected Growth: 4.5%

Growing demand for e-commerce and digitalization drives administrative fees, while increasing online sales and global expansion fuel freight costs. Miscellaneous expenses are expected to rise with the company's growing operational scale.

Sales Return

Expected Growth: 2.5%

The sales return from Natural Health Trends Corp. is expected to decline due to improved product quality and customer satisfaction initiatives, resulting in reduced merchandise returns and refunds, thus positively impacting revenue.

7. Detailed Products

NHT Global Products

NHT Global offers a range of health and wellness products, including nutritional supplements, weight management products, and personal care items.

E-commerce Platform

NHT Global's e-commerce platform provides a convenient and secure way for customers to purchase products online.

Business Opportunity

NHT Global offers a business opportunity for entrepreneurs who want to start their own business selling NHT Global products.

Wellness Products

NHT Global's wellness products include a range of nutritional supplements, vitamins, and minerals designed to support overall health and wellness.

Weight Management Products

NHT Global's weight management products are designed to support healthy weight loss and maintenance.

Personal Care Products

NHT Global's personal care products include a range of natural and organic products for skin, hair, and body care.

8. Natural Health Trends Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Natural Health Trends Corp. is medium due to the availability of alternative health and wellness products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry in the health and wellness industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the health and wellness industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.69%
Debt Cost 3.95%
Equity Weight 92.31%
Equity Cost 8.04%
WACC 7.73%
Leverage 8.33%

11. Quality Control: Natural Health Trends Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Natural Health Trends

A-Score: 6.5/10

Value: 6.0

Growth: 3.6

Quality: 6.5

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Leons

A-Score: 6.4/10

Value: 7.2

Growth: 5.1

Quality: 6.4

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Winmark

A-Score: 6.3/10

Value: 2.8

Growth: 5.0

Quality: 8.4

Yield: 6.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Kid

A-Score: 6.2/10

Value: 5.0

Growth: 6.7

Quality: 5.7

Yield: 9.4

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Build-A-Bear Workshop

A-Score: 6.1/10

Value: 5.1

Growth: 6.9

Quality: 7.0

Yield: 5.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Sleep Country Canada

A-Score: 3.9/10

Value: 2.2

Growth: 6.2

Quality: 3.8

Yield: 3.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.77$

Current Price

2.77$

Potential

-0.00%

Expected Cash-Flows