Economic analysis of Nu Skin Enterprises

Tereza Švarcová

Bachelor's thesis

Abstract:

This bachelor thesis deals with the Economic Analysis of Nu Skin Enterprises. The aim of this work is to determine whether it is appropriate to invest in this company and whether it is appropriate to work with it as its distributor. The work is divided into theoretical and practical parts. In the theoretical part, individual stock analyses are explained, focusing mostly on the fundamental analysis. The practical part deals with Nu Skin Enterprises and analyzes its historical and future development. Furthermore, comparative and fundamental analyses are used in the practical part. In the comparative analysis, Nu Skin Enterprises is compared with Herbalife International and Apple Inc. using three indicators: annual income, stock prices and market capitalization. In global fundamental analysis, Nu Skin’s shares were compared to US inflation and to the GDP of the USA. It has been found that inflation does not affect the development of Nu Skin’s shares, while GDP has a relatively strong impact on the development of the company's shares. In conclusion, it was found that both the company's value and the value of its stocks with regard to its historical development have a rising tendency, even in times of global crises. Therefore, investment in the shares of this company can be profitable. The company introduces new technology or products on the market almost every two years, which is beneficial both from the investor's perspective and from the distributor's perspective. It is also one of the few companies, which pays a large part of its income to the distributors.

Keywords

Competitor, Ratio, Analysis, Company, Revenue, Price, Evaluation, Company analysis, Fundamental analysis, Shareholder, Stocks, Dividend, Inflation, GDP

Language used: English

Date on which the thesis was submitted / produced: 15. 3. 2022

Thesis defence

• Supervisor: doc. Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / field:
Economics and Management / Economics and Management