Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Natural Health Trends Corp. (NHTC-Q) is a direct-selling and e-commerce company. Through its subsidiaries, it sells personal care, wellness and quality-of-life products under the NHT Global brand. Its products are spread across five categories: wellness, herbal, beauty, lifestyle and home.
The company reported second quarter profit of $12.2 million on July 27.
NHTC earns high marks from the James O'Shaughnessy-based model for its EPS persistence. EPS before extraordinary items for the last five years (from earliest to most recent fiscal year) were 0.21, 0.23, 0.36, 1.61 and 3.82. The model also likes NHTC's price-to-sales ratio of 1.22, based on trailing 12-month sales.
The Martin Zweig- and John Neff-inspired models like the stock's 7.69 P/E ratio, based on trailing 12-month sales. The Zweig model also likes its current-quarter earnings growth rate (9.18 per cent) compared to a year ago.
NHTC's sales growth rate is 80.7 per cent, based on the average of the 3- and 4-year historical sales growth rates, passing the John Neff-inspired model's sales growth test.
NHTC's free-cash-per-share of 6.38 gets high marks from the Kenneth Fisher-based model. The model also likes NHTC's three-year net profit margin, which averages 13.99 per cent.
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