Tuesday, October 31, 2006

NTRI - Nutrisystem Inc

Nutrisystem current market cap 10x above book value, will not add to the portfolio.


Overall Sorcard:

NTRI currently only passes 1 f the 8 selection criteria to be considered a value investment for my portfolio. I will continue to monitor this equity to see if it improves in other aspects of the scorecard.


Company Background: NutriSystem, Inc. provides weight management system and fitness products and services in the United States. Its weight management program primarily includes a prepackaged food program and counseling. The company’s prepackaged food consists of approximately 130 food items with carbohydrates, proteins, and fats under the brand name ‘NutriSystem’. The company also offers online and telephone counseling and support to customers using its diet counselors. It sells its prepackaged foods to weight loss program participants through the direct channel, QVC, field sales channel, and the case distributor channel. NutriSystem was founded in 1972. The company was formerly known as nutrisystem.com, Inc. and changed its name to Nutri/System, Inc. in 2000. Further, it changed its name to NutriSystem, Inc. in 2003. NutriSystem is headquartered in Horsham, Pennsylvania.

Sales & Income History:

NTRI has shown some impressive sales and income growth over the last 5 years with most of the growth occuring in the last 2 years. Out of the 5 years, 4 of the years have shown positive sales and income growth. 5 yr Revenue and Income CAGR's of 61% and 90% respectively.

5 Year Stock Performance:




Sources:

Company website, Yahoo Finance, Barchart.com

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