3 Things to Know Before Buying Nu Skin Enterpriseshttp://www.fool.com/investing/general/2013/10/23/3-things-to-know-before-buying-nu-skin-enterprises.aspx Brian Stoffel
October 23, 2013
This article has been updated on October 30, 2014.
Everybody wants to find the fountain of youth. Though literature tells us that is a fool's errand, it hasn't stopped companies from cashing in on a renewed focus on health in developing countries across the globe.
Nu Skin Enterprises (NYSE: NUS) is one such company, offering personal care products under its Nu Skin brand, as well as nutritional supplements under the Pharmanex brand. Shares have plummeted 65% year-to-date. With investors looking to see if the company is a buy at these lower prices, there are three key pieces of information every investor needs to have before buying shares of Nu Skin.
Asia is the Driver of Growth
To get an idea of what a huge jump in sales China had, consider that in 2011, that region accounted for 19% of all sales. By the end of 2013, it accounted for a whopping 43% of all sales.
Investigations into company practices
At first, it looked like the company might not be affected as much as many had worried. During the first quarter, sales in China were up 63%. That, however, was followed up with more sobering news: sales in China were down 12% and 3% overall during the second quarter, causing many to fear the worst.
Actually, not too expensive
Take a look at how these three companies stack up in terms of valuation.