Natural Alternatives International (NAII) AI Stock Analysis

• Market Cap: $20.45M
• Dividend Yield: N/A
• Average Volume (3M): 19.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -1.16%
• EPS Growth: -146.23%
• Country: US
• Employees: 296
• Sector: Healthcare
• Sector Strength: 41
• Industry: Packaged Foods
• EPS (TTM): -0.37
• Shares Outstanding: 6,178,898
• 10 Day Avg. Volume: 10,899
• 30 Day Avg. Volume: 19,123
• PEG Ratio: -0.24
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.61
• Enterprise Value/Market Cap: 3.57
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 11.90
• Enterprise Value/Ebitda: -5.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall score of 45 reflects significant financial challenges, including declining revenue and negative profit margins, which are the primary concerns. Despite some technical support suggesting short-term momentum, the ongoing losses and lack of earnings reflected in the negative P/E ratio highlight valuation concerns. The combination of these factors suggests a cautious outlook for the stock.

Natural Alternatives International Business Overview & Revenue Model

Company Description

Natural Alternatives International, Inc. (NAII) is a leading formulator, manufacturer, and marketer of customized nutritional supplements. Established in the health and wellness sector, the company provides a wide array of services including product development, manufacturing, and packaging for private-label and branded companies. NAII is particularly known for its patented CarnoSyn® beta-alanine, a scientifically proven ingredient that enhances athletic performance.

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 substantial financial challenges, with declining revenues, negative profitability, and strained cash flow. The company has increased leverage, adding financial risk. Overall, the financial health is weak, requiring strategic improvements to stabilize and grow.

Income Statement

The company is experiencing declining revenues with a significant drop from $170.97M in 2022 to $121.82M TTM. Gross profit margin deteriorated from 17.8% in 2022 to 5.0% TTM, and net profit margin turned negative at -6.3% TTM. Both EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased from 0.18 in 2021 to 0.60 TTM, indicating rising leverage. Return on equity is negative at -9.6% TTM, reflecting poor profitability. However, the equity ratio remains relatively stable at 50.7% TTM, showcasing some balance sheet stability despite pressures.

Cash Flow

Free cash flow has significantly declined, with a negative free cash flow growth rate observed. The operating cash flow to net income ratio is negative, indicating operational cash flow challenges. The cash flow situation is strained, reflecting difficulties in generating cash from operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
121.82M	113.80M	154.01M	170.97M	178.52M	118.88M
	Gross Profit
6.14M	6.87M	18.16M	30.51M	30.44M	18.87M
	EBIT
-9.03M	-8.53M	4.71M	13.68M	9.33M	-1.35M
	EBITDA
-4.81M	-4.46M	11.09M	20.66M	13.67M	5.06M
	Net Income Common Stockholders
-7.63M	-7.22M	2.52M	10.71M	10.77M	-1.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.66M	11.98M	13.60M	21.83M	32.13M	30.48M
	Total Assets
156.13M	162.34M	134.15M	146.00M	120.28M	120.20M
	Total Debt
61.67M	60.29M	30.93M	31.84M	16.48M	28.78M
	Net Debt
53.01M	48.31M	17.33M	10.01M	-15.65M	-1.70M
	Total Liabilities
76.99M	79.75M	45.38M	57.48M	40.20M	48.83M
	Stockholders Equity
79.14M	82.59M	88.77M	88.52M	80.08M	71.38M
Cash Flow		Free Cash Flow
-12.41M	-4.51M	-6.50M	-14.62M	15.70M	-850.00K
	Operating Cash Flow
-9.75M	-1.50M	7.02M	11.87M	20.81M	3.69M
	Investing Cash Flow
-2.67M	-3.02M	-13.47M	-26.46M	-5.04M	-4.51M
	Financing Cash Flow
4.48M	2.89M	-1.78M	4.29M	-14.11M	6.25M

Natural Alternatives International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.31
• 50DMA: Positive
• 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 3.31 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 3.22, and below the 200-day MA of 4.40, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 78.08 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
NATR	77 Outperform	$273.06M	27.80	6.42%	―	2.00%	-37.09%
USNA	73 Outperform	$560.00M	16.47	6.78%	―	-2.69%	-43.24%
FTLF	66 Neutral	$129.50M	15.19	25.89%	―	9.14%	18.87%
HLF	62 Neutral	$705.80M	2.52	-31.74%	―	-2.45%	100.59%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
NAII	45 Neutral	$20.45M	―	-10.25%	―	-1.16%	-146.23%
HAIN	43 Neutral	$186.82M	―	-31.83%	―	-8.50%	-186.18%