Source: Investing Published 03/01/2025, 14:05
Provo, Utah – Nu Skin Enterprises Inc. (NYSE: NUS) has completed a significant transaction through its subsidiary, Rhyz Inc., to sell affiliate marketing platform Mavely to Later, backed by Summit Partners. The deal values approximately $250 million and includes both cash and a minority stake in the combined Later/Mavely entity. According to InvestingPro data, the deal represents more than 75% of Nu Skin’s current market cap of $326.1 million. Analysts suggest that the stock is currently undervalued.
The strategic move is expected to enhance Nu Skin’s capabilities and drive its growth in the beauty, wellness.
and lifestyle ecosystem. The company maintains strong financial fundamentals with impressive gross profit margins of 74.4% and a healthy current ratio of 1.93, indicating strong liquidity. Ryan Napierski, Nu Skin’s President and CEO, commented on the synergistic value that the transaction brings, emphasizing the company’s commitment to innovation and growth within its core businesses.
The transaction reflects a significant return on Nu Skin’s investment in Mavely.
which it acquired in 2021, approximately five times the original investment. The proceeds are set to be used to reduce debt and fund further innovation. Additionally, Nu Skin plans to leverage its stronger balance sheet to repurchase shares, with the goal of generating shareholder value.
Evercore Group LLC and Simpson Thacher & Bartlett LLP served as exclusive financial advisor and legal counsel to Nu Skin, respectively, on this transaction.
Nu Skin, known for its integrated beauty and wellness products and dynamic affiliate marketing platform, operates globally in nearly 50 markets. The company has maintained dividend payments for 24 consecutive years, demonstrating long-term financial stability. Founded in 2018, Rhyz Inc. is a group of consumer, technology.
and manufacturing companies focused on the beauty, wellness, and lifestyle sectors. For detailed analysis and additional insights, investors can access comprehensive research reports on InvestingPro, which covers over 1,400 U.S. stocks including Nu Skin.
The information in this article is based on a press release from Nu Skin Enterprises Inc.
In other recent news, Nu Skin Enterprises has been under the eye of analysts.
with DA Davidson lowering its price target for the company from $11 to $7 while maintaining a neutral rating. This revision comes after Nu Skin’s recent report of weaker-than-expected Q3 2024 performance and a downgrade of its full-year outlook. Despite acknowledging a slowdown in the second half of 2024, DA Davidson analysts are expecting a slowdown in revenue declines for 2025, supported by expected growth in Nu Skin’s manufacturing business.
The company has strong fundamentals, including a 74.4% gross margin and a healthy current ratio of 1.93. However, the timeline for stabilizing Nu Skin’s core business remains uncertain, with DA Davidson noting that current cost-cutting measures may not offset the negative impact of an unfavorable geographic sales mix.
The company also provided estimates for 2026 and based the new price target on a four-times multiple of estimated earnings before interest, taxes, depreciation.
and amortization (EBITDA) for that year, which analysts expect to reach $151 million. Here are some recent developments surrounding Nu Skin Enterprises.
