China isn't the land of hot opportunities for everyone. Based partly on its woes there, NuSkin
With all of the bad news for the next few months, it would be very easy to look down on the company's shares. Instead, I see an interesting opportunity here, given Nu Skin's valuation, dividends, and future prospects. Let's tackle each of these items.
After the 14% hammering Nu Skin has taken today, it trades at a P/E of about 14. However, the company generates stronger free cash flow than it does accounting earnings, which means there is some value hidden below the P/E. Add to that the near 2% dividend yield, which is amply funded by free cash flow, and the valuation gets more attractive.
This company also has a history of driving mid-to-high single-digit growth, and despite the expected shortfall this year, the company believes China will work out well in the long term. In addition to China, the company is also expanding into Southeast Asia, which provides additional long-term growth opportunities.
Nu Skin's business model is not the same as EsteeLauder
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