Natural Alternatives International (NAII) AI Stock Analysis

• Market Cap: $19.83M
• Dividend Yield: N/A
• Average Volume (3M): 10.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: 3.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $3.00 ▼(-4.76% Downside)

The overall stock score of 47 reflects significant financial challenges, including declining profitability and cash flow issues, which are the most impactful factors. Technical analysis shows mixed signals, and valuation is unattractive due to ongoing losses. The resolution of credit agreement issues provides some stability but does not offset the broader financial concerns.

Positive Factors

Revenue Growth

Positive revenue growth suggests the company is expanding its market presence and product demand, which is critical for long-term success.

Credit Agreement Resolution

Resolving credit agreement issues ensures financial stability and supports ongoing operations, reducing financial uncertainty.

Strategic Partnerships

Strategic partnerships enhance product development and market reach, strengthening competitive positioning and innovation capabilities.

Negative Factors

Declining Profitability

Negative profitability margins indicate challenges in cost management and pricing power, affecting long-term financial health.

Increasing Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to fund operations and invest in future growth, posing liquidity risks.

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 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: Neutral
• Last Price: 3.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 3.15 is below the 20-day moving average (MA) of 3.35, above the 50-day MA of 3.04, and below the 200-day MA of 3.27, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.63 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	80 Outperform	$389.10M	27.41	9.52%	―	6.62%	-7.85%
FTLF	71 Outperform	$158.52M	24.27	17.77%	―	12.44%	-20.33%
LFVN	66 Neutral	$78.75M	8.05	33.31%	2.82%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$364.15M	22.38	3.20%	―	5.88%	-68.62%
NAII	47 Neutral	$19.83M	-1.64	-15.93%	―	18.19%	-35.22%
HAIN	42 Neutral	$106.87M	-0.20	-75.51%	―	-10.13%	-532.32%

Natural Alternatives International Corporate Events

Natural Alternatives Resolves Credit Agreement Issues

Natural Alternatives International, Inc. announced that it failed to comply with certain financial covenants under its Credit Agreement with Wells Fargo Bank for its fiscal first quarter ending September 30, 2025. To address the issue, the company successfully negotiated a Waiver and Release Agreement with Wells Fargo on December 17, 2025, ensuring that all defaults were waived and the Credit Agreement remains fully operational. This resolution reinforces the company’s ability to maintain its financial arrangements and supports its ongoing operations, bringing stability for stakeholders moving forward.

Natural Alternatives International Holds Annual Stockholder Meeting

On December 5, 2025, Natural Alternatives International held its Annual Meeting of Stockholders where several key decisions were made. The stockholders approved the election of a Class II director, the First Amendment to the 2020 Omnibus Equity Incentive Plan, the ratification of Haskell & White LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2026, the compensation of the company’s named executive officers, and a three-year frequency for non-binding votes on executive compensation.