Natural Alternatives International (NAII) AI Stock Analysis

• Market Cap: $16.86M
• Dividend Yield: N/A
• Average Volume (3M): 10.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: 13.83%
• EPS Growth: -82.27%
• Country: US
• Employees: 296
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.17
• Shares Outstanding: 6,176,778
• 10 Day Avg. Volume: 14,152
• 30 Day Avg. Volume: 10,400
• PEG Ratio: -0.02
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 8.42
• Enterprise Value/Market Cap: 3.97
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: -12.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $3.00 ▲(1.35% Upside)

Natural Alternatives International's stock score is primarily impacted by its financial performance, which highlights significant challenges in profitability and cash flow. Technical analysis suggests a bearish trend, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events leaves these areas unaddressed.

Natural Alternatives International Business Overview & Revenue Model

Company Description

Natural Alternatives International (NAII) is a leading provider of contract manufacturing services and nutritional products, specializing in the development and production of innovative dietary supplements and functional foods. The company operates primarily in the health and wellness sector, focusing on high-quality, science-based formulations that cater to the growing demand for natural and organic products. NAII's core offerings include a diverse range of nutritional supplements, private label products, and custom formulations for various clients across the globe, emphasizing quality and compliance with industry standards.

How the Company Makes Money

Natural Alternatives International generates revenue through several key streams, primarily from its contract manufacturing services, where it partners with brands to produce dietary supplements and functional foods under private labels. The company also earns income from the sale of its proprietary products, which are marketed directly to consumers and distributors. Additionally, NAII benefits from strategic partnerships with health and wellness brands that enable collaborative product development, leveraging its expertise in formulation and manufacturing. The company's focus on quality, compliance, and innovation has positioned it favorably in a competitive market, driving consistent revenue growth.

Natural Alternatives International Financial Statement Overview

Summary

Natural Alternatives International faces financial challenges, with declining profitability and cash flow issues. While revenue has shown some growth, the company struggles with operational inefficiencies and increasing leverage. The negative return on equity and cash flow constraints highlight the need for strategic improvements to enhance financial stability and shareholder value.

Income Statement

Natural Alternatives International has experienced fluctuating revenue growth, with a recent positive growth rate of 3.27% after a decline in previous years. However, profitability metrics such as the gross profit margin (6.95%) and net profit margin (-10.48%) indicate challenges in maintaining profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 0.86 suggests moderate leverage, but the increasing trend in debt levels is concerning. The return on equity is negative, reflecting recent net losses and indicating inefficiencies in generating returns for shareholders. The equity ratio is not available, limiting a full assessment of financial stability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth (-169.76%), indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.21, suggesting challenges in converting income into cash. The free cash flow to net income ratio of 0.39 further underscores cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.72M	129.58M	113.80M	154.01M	170.97M	178.52M
Gross Profit	9.15M	9.01M	6.87M	18.16M	30.51M	30.44M
EBITDA	-5.27M	-5.26M	-4.46M	11.09M	20.66M	16.58M
Net Income	-13.57M	-13.57M	-7.22M	2.52M	10.71M	10.77M
Balance Sheet
Total Assets	166.29M	368.00K	162.34M	134.15M	146.00M	120.28M
Cash, Cash Equivalents and Short-Term Investments	12.32M	12.32M	11.98M	13.60M	21.83M	32.13M
Total Debt	59.03M	59.03M	60.29M	30.93M	31.84M	16.48M
Total Liabilities	97.86M	97.86M	79.75M	45.38M	57.48M	40.20M
Stockholders Equity	68.43M	68.43M	82.59M	88.77M	88.52M	80.08M
Cash Flow
Free Cash Flow	2.32M	2.32M	-4.51M	-6.50M	-14.62M	15.70M
Operating Cash Flow	5.93M	5.93M	-1.50M	7.02M	11.87M	20.81M
Investing Cash Flow	-3.61M	-3.61M	-3.02M	-13.47M	-26.46M	-5.04M
Financing Cash Flow	-1.97M	-1.97M	2.89M	-1.78M	4.29M	-14.11M

Natural Alternatives International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.96
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 2.96 is above the 20-day moving average (MA) of 2.75, below the 50-day MA of 2.99, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 65.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NAII.

Natural Alternatives International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTLF	72 Outperform	$172.42M	22.46	21.88%	―	3.91%	-1.39%
NATR	70 Outperform	$313.52M	22.08	9.52%	―	6.62%	-7.85%
LFVN	66 Neutral	$88.84M	9.27	33.31%	2.33%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$375.49M	23.09	3.20%	―	5.88%	-68.62%
NAII	45 Neutral	$16.86M	-1.22	-17.98%	―	13.83%	-82.27%
HAIN	43 Neutral	$108.35M	-0.20	-75.51%	―	-10.13%	-532.32%