Nu Skin Beneish M Score

NUS
 Stock
  

USD 44.72  1.42  3.28%   

This module uses fundamental data of Nu Skin to approximate the value of its Beneish M Score. Nu Skin M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Nu Skin Piotroski F Score and Nu Skin Altman Z Score analysis.
  
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As of 07/04/2022, Debt Current is likely to grow to about 49.8 M, while Total Debt is likely to drop slightly above 445.8 M. Nu Skin Cash and Equivalents Turnover is relatively stable at the moment as compared to the past year. Nu Skin reported last year Cash and Equivalents Turnover of 7.26. As of 07/04/2022, Return on Investment is likely to grow to 27.17, while Calculated Tax Rate is likely to drop 34.50.
At this time, it appears that Nu Skin Enterprises is an unlikely manipulator. The earnings manipulation may begin if Nu Skin's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Nu Skin executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Nu Skin's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.37
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset Quality0.96Focus
Expense Coverage1.11Focus
Gross Margin Strengs1.14Focus
Accruals Factor1.11Focus
Depreciation Resistance1.05Focus
Net Sales Growth0.89Focus
Financial Leverage Condition0.99Focus

Nu Skin Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Nu Skin's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues2.4 B2.7 B
Moderately Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.9 B1.9 B
Slightly Down
Increasing
Slightly volatile
Net Cash Flow from Operations219.2 M141.6 M
Way Up
Decreasing
Very volatile
Depreciation Amortization and Accretion110.9 M138.2 M
Significantly Down
Increasing
Slightly volatile
Total Assets1.6 B1.9 B
Fairly Down
Increasing
Slightly volatile
Investments16.1 M19.1 M
Fairly Down
Decreasing
Very volatile
Investments Current16.1 M19.1 M
Fairly Down
Decreasing
Very volatile
Property Plant and Equipment Net610.1 M716.8 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables62.9 M72.9 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities848.4 M993.7 M
Fairly Down
Increasing
Slightly volatile
Current Assets775.9 M873 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current1.1 B1.2 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities457.6 M529.7 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current508.6 M597.9 M
Fairly Down
Increasing
Slightly volatile
Total Debt445.8 M514.8 M
Fairly Down
Increasing
Slightly volatile
Debt Current49.8 M34.5 M
Way Up
Decreasing
Very volatile
Debt Non Current396 M480.3 M
Significantly Down
Increasing
Slightly volatile
Operating Income289.5 M234 M
Fairly Up
Decreasing
Stable
Gross Margin85.274.9516
Fairly Up
Decreasing
Slightly volatile

Nu Skin Enterprises Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Nu Skin's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Nu Skin in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Nu Skin's degree of accounting gimmicks and manipulations.

About Nu Skin Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.91 Billion

Share
Nu Skin Operating Expenses is relatively stable at the moment as compared to the past year. Nu Skin reported last year Operating Expenses of 1.92 Billion

Nu Skin Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Nu Skin. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues2.28 B2.68 B2.42 B2.58 B2.7 B2.41 B
Total Assets1.59 B1.69 B1.77 B1.96 B1.91 B1.65 B
Current Assets777.79 M799.24 M740.17 M903.2 M872.95 M775.91 M
Assets Non Current812.08 M895.21 M1.03 B1.05 B1.21 B1.07 B
Total Liabilities885.28 M912.58 M893.72 M1.06 B993.71 M848.36 M
Current Liabilities447.37 M439.65 M356.76 M542.86 M529.69 M457.59 M
Total Debt388.63 M430.46 M467.66 M447.67 M514.82 M445.76 M
Debt Current77.84 M69.45 M27.5 M30 M34.5 M49.81 M
Debt Non Current310.79 M361.01 M440.16 M417.67 M480.32 M395.95 M
Operating Income274.48 M240.86 M267.43 M257.56 M233.99 M289.51 M
Investments11.85 M11.35 M8.41 M21.22 M19.09 M16.07 M
Investments Current11.85 M11.35 M8.41 M21.22 M19.09 M16.07 M
Gross Margin77.9776.3375.9874.5174.9585.2

About Nu Skin Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Nu Skin Enterprises's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Nu Skin using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Nu Skin Enterprises based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Nu Skin Enterprises, Inc. develops and distributes beauty and wellness products worldwide. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah. Nu Skin operates under Household Personal Products classification in the United States and is traded on New York Stock Exchange. It employs 4600 people.

Nu Skin Investors Sentiment

The influence of Nu Skin's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Nu Skin. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Nu Skin Implied Volatility

    
  80.2  
Nu Skin's implied volatility exposes the market's sentiment of Nu Skin Enterprises stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nu Skin's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nu Skin stock will not fluctuate a lot when Nu Skin's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Nu Skin in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Nu Skin's short interest history, or implied volatility extrapolated from Nu Skin options trading.

Current Sentiment - NUS

Nu Skin Enterprises Investor Sentiment

Greater number of Macroaxis users are now bullish on Nu Skin Enterprises. What is your trading attitude regarding investing in Nu Skin Enterprises? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Additionally, see Nu Skin Piotroski F Score and Nu Skin Altman Z Score analysis. Note that the Nu Skin Enterprises information on this page should be used as a complementary analysis to other Nu Skin's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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When running Nu Skin Enterprises price analysis, check to measure Nu Skin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nu Skin is operating at the current time. Most of Nu Skin's value examination focuses on studying past and present price action to predict the probability of Nu Skin's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nu Skin's price. Additionally, you may evaluate how the addition of Nu Skin to your portfolios can decrease your overall portfolio volatility.
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Is Nu Skin's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nu Skin. If investors know Nu Skin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nu Skin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.16
Market Capitalization
2.2 B
Quarterly Revenue Growth YOY
-0.11
Return On Assets
0.0916
Return On Equity
0.15
The market value of Nu Skin Enterprises is measured differently than its book value, which is the value of Nu Skin that is recorded on the company's balance sheet. Investors also form their own opinion of Nu Skin's value that differs from its market value or its book value, called intrinsic value, which is Nu Skin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nu Skin's market value can be influenced by many factors that don't directly affect Nu Skin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nu Skin's value and its price as these two are different measures arrived at by different means. Investors typically determine Nu Skin value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nu Skin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.