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: 18.19%
• EPS Growth: -35.22%
• Country: US
• Employees: 296
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.05
• 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: 0.51
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: -18.98
• 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: 54 Neutral
• Price Target: $4.00 ▲(14.29% Upside)

The overall stock score is primarily influenced by financial challenges, including declining profitability and cash flow issues, which are significant concerns. While technical analysis shows bullish momentum, the valuation suggests potential overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's revenue growth indicates a strong market demand for its products, suggesting a positive trend in expanding its market presence and customer base.

Strategic Partnerships

Strategic partnerships enhance product development capabilities and market reach, leveraging expertise to drive innovation and competitive advantage.

Focus on Quality and Compliance

Commitment to quality and compliance strengthens brand reputation and customer trust, supporting long-term growth in the health and wellness sector.

Negative Factors

Declining Profitability

Declining profitability indicates challenges in cost management and pricing strategy, potentially impacting long-term financial health and shareholder returns.

Cash Flow Constraints

Cash flow constraints limit the company's ability to invest in growth opportunities and manage debt, posing risks to financial stability and operational flexibility.

Operational Inefficiencies

Operational inefficiencies highlight issues in cost control and resource allocation, potentially hindering profitability and competitive positioning in the market.

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

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 is facing financial challenges, with declining profitability and increasing leverage. While there is some revenue growth, the negative margins and cash flow issues highlight the need for strategic improvements to stabilize the company's financial health.

Income Statement

Natural Alternatives International has experienced declining profitability with negative net profit and EBIT margins in the TTM period. The revenue growth rate is positive at 3.53%, indicating some recovery, but the overall margins remain weak compared to previous years, highlighting challenges in maintaining profitability.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating higher leverage, which could pose risks if not managed properly. Return on equity is negative, reflecting recent losses. However, the equity ratio remains relatively stable, suggesting a balanced asset structure.

Cash Flow

The cash flow situation is concerning, with a significant decline in free cash flow growth and a low operating cash flow to net income ratio. Although there is some operating cash flow, the negative free cash flow growth indicates potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.58M	129.86M	113.80M	154.01M	170.97M	178.52M
Gross Profit	10.56M	9.29M	6.87M	18.16M	30.51M	30.44M
EBITDA	-3.53M	-2.70M	-4.46M	11.09M	20.66M	16.58M
Net Income	-18.81M	-13.57M	-7.22M	2.52M	10.71M	10.77M
Balance Sheet
Total Assets	151.94M	151.94M	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	83.51M	83.51M	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	7.95M	2.32M	-4.51M	-6.50M	-14.62M	15.70M
Operating Cash Flow	12.72M	5.93M	-1.50M	7.02M	11.87M	20.81M
Investing Cash Flow	-4.77M	-3.61M	-3.02M	-13.47M	-26.46M	-5.04M
Financing Cash Flow	-4.07M	-1.97M	2.89M	-1.78M	4.29M	-14.11M

Natural Alternatives International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.5 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 2.93, and above the 200-day MA of 3.32, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, 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	73 Outperform	$368.46M	25.95	9.52%	―	6.62%	-7.85%
FTLF	71 Outperform	$175.14M	26.81	17.77%	―	12.44%	-20.33%
LFVN	66 Neutral	$87.26M	8.92	33.31%	2.55%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$358.30M	22.02	3.20%	―	5.88%	-68.62%
NAII	54 Neutral	$16.86M	-1.22	-15.93%	―	18.19%	-35.22%
HAIN	38 Underperform	$97.81M	-0.18	-75.51%	―	-10.13%	-532.32%