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1. Company Snapshot

1.a. Company Description

USANA Health Sciences, Inc.develops, manufactures, and sells science-based nutritional and personal care products.The company offers USANA nutritional products that comprise essentials/CellSentials, such as vitamin and mineral supplements that provide a foundation of total body nutrition for various age groups; optimizers comprising targeted supplements that are designed to meet cardiovascular, skeletal/structural, and digestive health needs; and foods that include meal replacement shakes, snack bars, and other related products.


It also provides Celavive, a skin care regimen for various skin care types and ethnicities; and other products for prenatal, infant, and young child age groups.In addition, the company offers materials and online tools to assist associates in building their businesses, as well as in marketing products.It offers its products directly in the Asia Pacific, the Americas, and Europe, as well as online.


The company has a research collaboration agreement with Beijing University of Chinese Medicine for research in the field of traditional Chinese medicine; and National Sports Training Bureau.USANA Health Sciences, Inc.was founded in 1992 and is headquartered in Salt Lake City, Utah.

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1.b. Last Insights on USNA

The recent 3-month performance of USANA Health Sciences, Inc. was negatively impacted by a lack of significant earnings growth, despite beating Q4 earnings estimates. The company's Q4 2024 earnings release showed a decline in earnings per share to $0.64, compared to $0.87 a year ago. Additionally, the absence of any notable product launches or significant business developments during this period may have contributed to the negative sentiment.

1.c. Company Highlights

2. USANA Health Sciences' Q3 Earnings: A Mixed Bag

USANA Health Sciences reported a challenging third quarter, with softer sales and Brand Partner productivity impacting financial performance. Revenue growth was sluggish, and earnings per share (EPS) came in at -$0.15, missing analyst estimates of $0.25. The company's gross margin was also under pressure, although specific figures were not disclosed. The recent rollout of its enhanced compensation plan is expected to drive future growth, but the immediate impact on sales was not significant.

Publication Date: Nov -02

📋 Highlights
  • Hiya's Year-to-Date Growth:: Direct-to-consumer brand Hiya achieved 26% sales growth year-to-date, despite third-quarter challenges from Meta algorithm changes.
  • Rise Bar's Sales Surge:: Acquired brand Rise Bar reported 169% year-to-date net sales growth in Q3, contributing significantly to revenue expansion.
  • Cost Reduction Charge:: USANA expects a $4.7 million one-time charge in Q4 from workforce rightsizing and global cost-cutting initiatives.
  • Inventory Buildup:: Increased inventories stemmed from new product launches, tariff mitigation investments, and strategic working capital infusions into Hiya and Rise Bar.
  • Compensation Plan Launch:: The July-launched plan emphasizing "share, grow, lead" aims to simplify Brand Partner growth, aligning with improved engagement and meeting attendance metrics.

Regional Performance and Business Highlights

The Americas and Europe region performed relatively better than other regions, driven by the maturity of those markets and the contribution from Rise Bar, which reported record third-quarter net sales and 169% year-to-date net sales growth. Hiya, the direct-to-consumer business, delivered 26% year-to-date sales growth, although top-line growth was impacted by changes in Meta's algorithms. USANA is confident that Hiya can get back to growth next year, driven by its direct-to-consumer business, retail expansion, and international expansion.

Cost Reduction and Strategic Initiatives

In response to the challenging business environment, USANA initiated a global cost reduction process, including a rightsizing of its workforce, and expects to incur an estimated one-time charge of $4.7 million in the fourth quarter. The company remains confident that its comprehensive commercial strategy will position it to drive long-term growth in its direct selling business and deliver long-term value for customers and Brand Partners. USANA plans to continue investing in strategic opportunities to provide incentives for Brand Partners, which will likely spill over into early 2026.

Valuation and Growth Prospects

USANA's valuation metrics suggest that the market is cautious on the company's growth prospects. The Price-to-Sales Ratio stands at 0.42, and the EV/EBITDA ratio is 2.87. Analysts estimate next year's revenue growth at -1.9%, indicating a challenging business environment. However, USANA's strong cash position and diversified business model, including its direct-to-consumer businesses Hiya and Rise, provide a foundation for long-term growth. With a focus on product quality and a strategy to articulate its value proposition to consumers, USANA is well-positioned to capitalize on industry trends.

Management's Outlook and Opportunities

Management sees opportunities to acquire more DTC businesses to complement its existing portfolio, leveraging its adviser channel to help consumers navigate the complex supplement market. USANA's RFK's Make America Healthy initiative is expected to create sales opportunities and drive interest in supplements, benefiting both its direct-to-consumer and sales channels. With a 30-year history and a strong product line, USANA is confident in its ability to drive long-term growth and create value for shareholders.

3. NewsRoom

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On National "Make-a-Gift Day," Kevin Guest Says the Most Meaningful Gifts Are the Ones Money Can't Buy

Dec -03

Source: prnewswire.com

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Proven Power for Strong Bone Support--USANA's MagneCal D Earns ConsumerLab.com Seal of Approval

Nov -11

Source: prnewswire.com

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USANA Foundation Mobilizes Hundreds from the Community to Pack 3,000 Food Bags for Utah Families Affected by SNAP Cutbacks

Nov -06

Source: prnewswire.com

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USANA Executive Chairman Kevin Guest Calls for a "Great Re-Engagement" Rooted in Trust, Empathy, Purpose

Nov -03

Source: prnewswire.com

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Solstice Advance Materials and Qnity Electronics Set to Join S&P 500; Others to Join S&P SmallCap 600

Oct -27

Source: prnewswire.com

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USANA Health Sciences, Inc. (USNA) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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USANA Health Sciences (USNA) Reports Q3 Loss, Misses Revenue Estimates

Oct -22

Source: zacks.com

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USANA Health Sciences Reports Third Quarter 2025 Results and Updates Full-Year Outlook

Oct -22

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.96%)

6. Segments

USANA Nutritionals

Expected Growth: 8%

USANA Nutritionals' 8% growth driven by increasing demand for healthy living, expanding online presence, and strategic partnerships. Strong brand recognition, high-quality products, and a large network of independent distributors also contribute to growth. Additionally, the company's focus on innovation, R&D, and geographic expansion into new markets further fuels growth.

USANA Foods

Expected Growth: 7%

USANA Foods' 7% growth driven by increasing demand for healthy and convenient meal options, expansion into new markets, and strategic partnerships. Strong brand recognition, high-quality products, and effective marketing strategies also contribute to growth. Additionally, the rising trend of online shopping and subscription-based services boosts sales.

Personal Care and Skincare

Expected Growth: 9%

USANA Health Sciences, Inc.'s 9% growth in Personal Care and Skincare is driven by increasing demand for natural and organic products, a growing awareness of skin health, and a rising trend of self-care and wellness. Additionally, the company's strong online presence, effective marketing strategies, and expanding product lines have contributed to its growth in this segment.

All Other

Expected Growth: 6%

USANA Health Sciences' 6% growth in All Other segment is driven by increasing demand for nutritional supplements, expansion into new markets, and strategic partnerships. Additionally, the company's focus on e-commerce and digital marketing has improved customer engagement, leading to higher sales. Furthermore, the company's investment in research and development has enabled the launch of new products, contributing to the segment's growth.

7. Detailed Products

Nutritionals

USANA's Nutritionals product line offers a range of dietary supplements that provide essential nutrients, vitamins, and minerals to support overall health and wellness.

Food and Beverages

USANA's Food and Beverages product line includes healthy snack options, beverages, and meal replacement shakes that provide convenient and nutritious solutions for a busy lifestyle.

Skincare and Personal Care

USANA's Skincare and Personal Care product line offers a range of natural and effective skincare products that promote healthy skin, hair, and nails.

Celavive

USANA's Celavive product line is a skincare system that uses InCelligence technology to promote healthy skin and reduce signs of aging.

8. USANA Health Sciences, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

USANA Health Sciences, Inc. has a low threat of substitutes due to its unique and high-quality nutritional supplements, which are difficult to replicate by other companies.

Bargaining Power Of Customers

USANA Health Sciences, Inc. has a medium bargaining power of customers due to the presence of a large customer base, but the company's strong brand loyalty and customer retention programs mitigate this power.

Bargaining Power Of Suppliers

USANA Health Sciences, Inc. has a low bargaining power of suppliers due to its strong relationships with suppliers and its ability to negotiate favorable prices.

Threat Of New Entrants

USANA Health Sciences, Inc. has a medium threat of new entrants due to the presence of barriers to entry, such as high research and development costs and regulatory hurdles, but the company must still be vigilant to new market entrants.

Intensity Of Rivalry

USANA Health Sciences, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.59%
Debt Cost 3.95%
Equity Weight 97.41%
Equity Cost 8.62%
WACC 8.50%
Leverage 2.66%

11. Quality Control: USANA Health Sciences, Inc. passed 5 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

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Bridgford Foods

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Value: 9.6

Growth: 4.1

Quality: 5.1

Yield: 0.0

Momentum: 6.0

Volatility: 5.7

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Herbalife Nutrition

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Value: 9.5

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 8.0

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B&G Foods

A-Score: 4.8/10

Value: 9.6

Growth: 2.6

Quality: 2.8

Yield: 10.0

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Laird Superfood

A-Score: 4.3/10

Value: 7.4

Growth: 6.9

Quality: 4.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

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USANA Health Sciences

A-Score: 3.6/10

Value: 8.0

Growth: 2.2

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

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NAI

A-Score: 3.3/10

Value: 9.5

Growth: 2.9

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.7$

Current Price

19.7$

Potential

-0.00%

Expected Cash-Flows