Natural Alternatives International (NAII) AI Stock Analysis

• Market Cap: $22.55M
• Dividend Yield: N/A
• Average Volume (3M): 4.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -1.16%
• EPS Growth: -146.23%
• Country: US
• Employees: 296
• Sector: Healthcare
• Sector Strength: 40
• Industry: Packaged Foods
• EPS (TTM): -0.37
• Shares Outstanding: 6,178,898
• 10 Day Avg. Volume: 3,892
• 30 Day Avg. Volume: 4,832
• PEG Ratio: 0.32
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.36
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: -2.72
• 1Y Price Target: $3.50
• Price Target Upside: -4.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $3.50 ▼(-4.11%Downside)

The most significant factor affecting the stock score is the financial performance, which is currently concerning due to declining revenues and negative profit margins. However, the new manufacturing agreement provides a positive outlook for future operations. Technical analysis shows mild bullish momentum, but the valuation remains unattractive due to negative earnings. The overall score reflects a cautious outlook with potential for improvement if financial issues are addressed.

Natural Alternatives International Business Overview & Revenue Model

Company Description

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States, Europe, Asia, and internationally. The company operates in two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. It offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal, and other nutritional supplements, as well as other health care products. The company also provides strategic partnering services, such as customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats and labeling design, scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, packaging and delivery system design, and regulatory review. In addition, it sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. The company manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. Its private-label contract manufacturing customers include companies that market nutritional supplements through direct sales marketing channels, direct to consumer e-commerce channels, and retail stores. Natural Alternatives International, Inc. was founded in 1980 and is headquartered in Carlsbad, California.

How the Company Makes Money

NAII generates revenue primarily through the sale of customized nutritional supplements and ingredients. The company operates in two main segments: private-label contract manufacturing and branded ingredients. In private-label contract manufacturing, NAII partners with various brands to develop and produce nutritional supplements tailored to their specific needs, earning income from manufacturing and packaging services. In the branded ingredients segment, NAII markets and sells its proprietary CarnoSyn® beta-alanine, which is widely used in sports nutrition products. Additionally, the company licenses its CarnoSyn® technology to other companies, receiving royalties as a revenue stream. Significant partnerships with sports nutrition brands and ongoing research and development efforts further bolster NAII's market position and contribute to its financial performance.

Natural Alternatives International Financial Statement Overview

Summary

Natural Alternatives International is facing significant financial challenges, with declining revenue, negative profit margins, and weak cash flow performance. While the balance sheet remains relatively stable, the company's inability to generate positive earnings and cash flow raises concerns about its operational efficiency and long-term sustainability.

Income Statement

Natural Alternatives International has faced declining revenue and profitability over recent periods. The TTM (Trailing-Twelve-Months) shows a decrease in revenue to $125.5M from $113.8M in the previous annual period, but still below the $154.0M of the period before that. Gross Profit Margin has dropped to 5.7%, and the Net Profit Margin is negative at -6.6% due to sustained net losses. The EBIT Margin is significantly negative at -7.4%, indicating operational challenges, while the EBITDA Margin is also negative at -4.9%. Overall, the company is struggling with decreasing margins and negative earnings.

Balance Sheet

The balance sheet shows a stable equity position with Stockholders' Equity at $76.6M and a Debt-to-Equity Ratio of approximately 0.62, which is manageable. However, Return on Equity (ROE) is negative due to the net losses, indicating inefficiencies in generating profit from shareholders' investments. The Equity Ratio is healthy at about 49.5%, suggesting a balanced capital structure with a moderate level of leverage. While the company maintains a solid equity base, profitability issues are a concern.

Cash Flow

Cash flow performance has been weak, with negative Free Cash Flow of -$3.3M in the TTM, an improvement from the previous period but still a concern. Operating Cash Flow to Net Income Ratio is negative, reflecting operational cash outflows. The Free Cash Flow to Net Income Ratio is also negative due to net losses, indicating cash flow challenges. Despite these issues, the company has managed financing activities to maintain liquidity.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	125.48M	113.80M	154.01M	170.97M	178.52M	118.88M
Gross Profit	7.17M	6.87M	18.16M	30.51M	30.44M	18.87M
EBITDA	-6.11M	-4.46M	11.09M	20.66M	13.67M	5.06M
Net Income	-8.23M	-7.22M	2.52M	10.71M	10.77M	-1.65M
Balance Sheet
Total Assets	135.49M	162.34M	134.15M	146.00M	120.28M	120.20M
Cash, Cash Equivalents and Short-Term Investments	18.57M	11.98M	13.60M	21.83M	32.13M	30.48M
Total Debt	24.45M	60.29M	30.93M	31.84M	16.48M	28.78M
Total Liabilities	50.41M	79.75M	45.38M	57.48M	40.20M	48.83M
Stockholders Equity	85.08M	82.59M	88.77M	88.52M	80.08M	71.38M
Cash Flow
Free Cash Flow	-3.32M	-4.51M	-6.50M	-14.62M	15.70M	-850.00K
Operating Cash Flow	-130.00K	-1.50M	7.02M	11.87M	20.81M	3.69M
Investing Cash Flow	-3.19M	-3.02M	-13.47M	-26.46M	-5.04M	-4.51M
Financing Cash Flow	1.53M	2.89M	-1.78M	4.29M	-14.11M	6.25M

Natural Alternatives International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAII, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 3.37, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 45.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NAII.

Natural Alternatives International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	77 Outperform	$276.39M	27.97	6.42%	―	2.00%	-37.09%
FTLF	76 Outperform	$124.43M	14.60	25.89%	―	9.14%	18.87%
USNA	72 Outperform	$659.82M	19.67	6.54%	―	2.75%	-37.25%
HLF	71 Outperform	$1.10B	3.94	-31.74%	―	-2.45%	100.59%
NAII	53 Neutral	$22.55M	―	-10.25%	―	-1.16%	-146.23%
Sector *	50 Neutral	AU$2.60B	2.95	-57.47%	2.44%	36.73%	13.67%
HAIN	48 Neutral	$174.19M	―	-31.83%	―	-8.50%	-186.18%

Natural Alternatives International Corporate Events

Natural Alternatives International Secures New Manufacturing Agreement

On July 16, 2025, Natural Alternatives International, Inc. (NAI) and its subsidiary entered into a new Manufacturing Agreement with The Juice Plus+ Company, effective immediately and replacing the previous agreement set to expire on August 6, 2025. This agreement, which extends their 30+ year partnership, will see NAI manufacture and supply Juice Plus+ products across 24 countries until July 16, 2027. The renewed contract underscores the companies’ shared commitment to delivering high-quality nutritional products and is expected to be mutually beneficial, strengthening NAI’s position in the global nutritional supplement market.

Natural Alternatives Increases CFO Salary Effective July 2025

Natural Alternatives International, Inc. has amended the employment agreement with its Chief Financial Officer, Michael E. Fortin, to increase his annual base salary to $365,000, effective July 1, 2025. This adjustment reflects the company’s ongoing commitment to retaining key leadership and may impact its financial planning and stakeholder relations.

Natural Alternatives International Amends Credit Facility Agreement

On June 20, 2025, Natural Alternatives International, Inc. (NAI) amended its credit facility with Wells Fargo Bank, extending it to December 31, 2026. The amendment reduces the maximum borrowing amount from $12.5 million to $10 million and uses NAI’s powder processing facility in Carlsbad, California, as security. This adjustment, which modifies previous agreements and maintains the 2019 security agreement, reflects NAI’s strategic financial management and could impact its operational flexibility.