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$NUS is way undervalued, zero net debt, and an unfilled gap to $9.78 that’s still below tangible book

BULLISH by u/jsimpy | Oct 12, 2026 | 1↑ 0 comments | 8 views | VIEW ON REDDIT
$NUS
$NUS NU SKIN ENTERPRISES, INC. CONSUMER DEFENSIVE EQUITY SIMULATION
$4.84
+0.11 (+2.22%)
LAST PRICE · 15 MIN DELAY
DAY CHG +2.22%
5D CHG +4.64%
30D CHG +2.86%
AI SUMMARY — Nu Skin trades at $4.82 with net working capital of $5.19/share, $7.82/share in PP&E, and essentially zero net debt, offering access to real assets and brands at a significant discount to tangible book value ($10.30/share). Key risks include ongoing revenue declines, MLM business model concerns, and the fact that the technical gap to $9.78 may never fill.
TICKERNUS USERu/jsimpy
RATING BULLISH ENTRY $4.83
POSITION 2063 sh SYN BOOK VAL $9958.72
CURRENT $4.84 P&L % +0.41%
CURR VAL $10000.00 P&L $ +41.28

TL;DR: Nu Skin trades at a \~$234M market cap with $251.8M of net working capital, $379.6M of PP&E, and essentially zero net debt. You’re getting the real estate, the factories, and the brand for less than free. There’s an unfilled daily gap from Feb 13 up to $9.78 — which is still a 5% discount to tangible book. Yes it’s an MLM. Yes revenue is falling.

The balance sheet (6/30/26 10-Q, \~48.55M shares out)

Stop there for a second. Net working capital per share ($5.19) is above the share price ($4.82). Graham-style. Current assets net of all current liabilities exceed the entire market cap by \~$18M, and you haven’t counted a single hard asset yet.

P/B ≈ 0.43. P/TBV ≈ 0.47. P/S ≈ 0.17. It still pays a $0.24 dividend (\~5.0% yield) covered by $0.70–$0.90 of guided adjusted EPS.

The chart

Daily gap from Feb 13 remains unfilled up to $9.78. The stock has not traded into that zone in eight months. Gap fill from $4.82 = +103%. And the punchline: $9.78 is still 5% below the $10.30 tangible book. You’d double your money and the thing would still be trading at a discount to liquidation-ish value.

The bear case, because I’m not going to pretend it isn’t ugly

  1. Book value is actively melting. Equity went $794M → $542.7M in ONE quarter (Q2'26). Goodwill $83.6M → $4.75M — management wrote off 94% of it. If you bought this thesis in April at $7, you got run over by the balance sheet you were underwriting. It can happen again.
  2. Revenue is in structural decline. Q2'26 revenue $320.1M, -17.1% YoY. FY guidance cut from $1.35–1.50B to $1.28–1.35B. EPS guide cut from $0.80–1.20 to $0.70–0.90. This is an MLM: fewer sales leaders → less revenue → fewer sales leaders. It’s reflexive and it does not obviously stop.
  3. The inventory number is the soft spot. $191.5M of inventory is the biggest chunk of that working capital. It’s skincare and supplements with expiration dates, for a demand base shrinking 17% a year. In any real liquidation you’re haircutting that hard. The $5.19 NWC/share is a book number, not a realizable one.
  4. PP&E is illiquid. $380M is mostly a purpose-built corporate campus in Utah. Worth book only if someone wants it.
  5. China. Material revenue exposure to a market with ongoing regulatory and sentiment risk toward direct selling.

What would actually make me wrong (in a good way)

Revenue decline decelerating to single digits. Q3 prints in early November — guidance was $310–340M. A print at the high end with stabilizing sales leader counts is the thing to watch.

Not financial advice. I’m a guy on the internet who read a 10-Q.