February 5, 2009 - Nu Skin Enterprises, Inc. (NUS-NYSE) develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand and nutritional supplements under the Pharmanex brand.

In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and south Asia/Pacific. The company also operates retail stores to sell its products in China. As of December 31, 2009, Nu Skin Enterprises had approximately 41 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.

This stock hit an all-time high of $30.23 on March 8, just a few weeks ago. Not coincidentally, revenues and earnings have been setting records as well. Analysts see more of the same for sales and profits.

In 2007, revenues totalled $1.158 billion, then went to $1.25 billion, followed by $1.331 billion. This year, 6 analysts have a consensus estimate of $1.42 billion, then see $1.52 billion next year. Revenues were up 7% for all of 2009 with the fourth quarter showing an increase of 17% compared to the final quarter of 2008. Some of that increase came from favorable currency translations (about 7%) but the majority was from increased sales in most product categories. Adding more distributors also contributed.

Earnings had the same pattern. In 2007, they were 87 cents, then $1.02, followed by $1.40. This year, 8 analysts have a consensus estimate of $1.77, then $2.00 in 2011. They see first quarter numbers at 42 cents a share, up from 28 cents in the first period last year. Second quarter earnings should replicate the first, showing 42 cents (vs 36 cents last year).

Ironically, even with a worldwide economic recession, Nu Skin has continued growing earnings. It would seem this product is a luxury, one that is easily cut from a budget. But that hasn't happened. With many economies starting to recover, and new product introductions, sales and earnings may have to be revised higher as the year progresses.

More numbers: While the P/E is 20.4, the Forward P/E is a more comfortable 14.26. Price to Book is 4.82. Book value is $5.99. Operating margin for the last 12 months was 11.90%. Profit margin was 6.75%. Return on equity is a remarkable 25.97%. Total cash is $158 million for $2.53 a share. Total debt is $156.52 million or about 25% of capital. Current ratio is 1.83. Beta is 1.24. There are 62.40 million shares outstanding. Float is 48.63 million. Insiders own 21.8%. Institutions have 67.2%. There is an annual dividend of 50 cents for a yield of 1.7%. The last Dividend date was March 16. Ex-dividend date was Feb 24.

This stock has a lot going for it. Investors love it and have driven the price to new highs. Early last year, it traded at $8 a share when the whole market was teetering on the edge of extinction. It's gone almost straight up since. If the company keeps delivering new products and better earnings, there isn't much to stop the stock from doing even better.

- Company Web site: www.nuskinenterprises.com

- Ted Allrich