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Nu Skin Enterprises Sees 38% Decline In Share Price Over Three Months

EditorVenkatesh Jartarkar
Published 10/30/2023, 04:53 PM
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Struggling with weak fundamentals, Nu Skin Enterprises (NYSE:NUS) has seen its share price tumble by 38% over the past three months. This is reflective of the company's below-average performance marked by a Return on Equity (ROE) of 7.8%, which falls short of the industry average of 13%.

The lower ROE indicates that Nu Skin Enterprises has been generating a profit of $0.08 per dollar of capital, emphasizing the importance of ROE in assessing profitability and future growth potential. This metric is used to measure how effectively a company uses its capital to generate profits.

In addition to these challenges, Nu Skin Enterprises has been grappling with issues such as inefficient capital allocation and low earnings retention. These factors have contributed to a decline in net income of 6.7% over the past five years.

These developments underscore the ongoing struggles faced by Nu Skin Enterprises amidst challenging market conditions and internal inefficiencies. The company's ability to reverse these trends will be critical for its future performance and growth potential.

InvestingPro Insights

To provide a more comprehensive picture, let's delve into some real-time data and tips from InvestingPro. The company, Nu Skin Enterprises, has a substantial market cap of 37.99B USD, and its P/E ratio stands at a lofty 508.81 as of Q2 2023, indicating a high price for its earnings. The company's revenue for the last twelve months as of Q2 2023 is 2627.75M USD, showing a considerable revenue growth of 109.89%.

Two key InvestingPro Tips for Nu Skin Enterprises are worth highlighting. The first tip reveals that the company is expected to see growth in net income this year, which is a positive sign considering the decline in net income over the past five years. The second tip suggests that despite trading at a high earnings multiple, the company has been profitable over the last twelve months. This is a good indication of the company's ability to generate profits despite challenging market conditions.

For more detailed insights and tips, consider subscribing to the InvestingPro product with an additional 10 tips available for Nu Skin Enterprises. Check it out here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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