NasdaqGM:NAII

Stock Analysis Report

Natural Alternatives International

Executive Summary

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Natural Alternatives International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NAII's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

NAII

-8.8%

US Personal Products

-2.0%

US Market


1 Year Return

-52.0%

NAII

-21.8%

US Personal Products

-15.1%

US Market

Return vs Industry: NAII underperformed the US Personal Products industry which returned -21.8% over the past year.

Return vs Market: NAII underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

NAIIIndustryMarket
7 Day0.3%-8.8%-2.0%
30 Day-12.9%-25.5%-19.7%
90 Day-20.4%-30.9%-23.2%
1 Year-52.0%-52.0%-20.7%-21.8%-13.4%-15.1%
3 Year-34.4%-34.4%16.7%11.0%10.9%3.7%
5 Year14.5%14.5%10.5%-1.3%28.4%14.4%

Price Volatility Vs. Market

How volatile is Natural Alternatives International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Natural Alternatives International undervalued compared to its fair value and its price relative to the market?

17.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NAII's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NAII's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NAII is poor value based on its PE Ratio (17.9x) compared to the Personal Products industry average (10.6x).

PE vs Market: NAII is poor value based on its PE Ratio (17.9x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NAII's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NAII is good value based on its PB Ratio (0.5x) compared to the US Personal Products industry average (1.7x).


Next Steps

Future Growth

How is Natural Alternatives International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.1%

Forecasted Household industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Natural Alternatives International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Natural Alternatives International performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAII has a large one-off loss of $2.4M impacting its December 31 2019 financial results.

Growing Profit Margin: NAII's current net profit margins (1.9%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: NAII's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: NAII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NAII had negative earnings growth (-75.5%) over the past year, making it difficult to compare to the Personal Products industry average (25.5%).


Return on Equity

High ROE: NAII's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Natural Alternatives International's financial position?


Financial Position Analysis

Short Term Liabilities: NAII's short term assets ($68.5M) exceed its short term liabilities ($11.2M).

Long Term Liabilities: NAII's short term assets ($68.5M) exceed its long term liabilities ($22.2M).


Debt to Equity History and Analysis

Debt Level: NAII is debt free.

Reducing Debt: NAII has not had any debt for past 5 years.

Debt Coverage: NAII has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NAII has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NAII has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NAII's debt is covered by short term assets.


Next Steps

Dividend

What is Natural Alternatives International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NAII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NAII's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NAII's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NAII's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NAII's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Mark LeDoux (65yo)

33.67s

Tenure

US$796,040

Compensation

Mr. Mark A. Ledoux, J.D. has been the Chief Executive Officer of Natural Alternatives International Inc. since August 1986 and served as its Assistant Treasurer since 1998. Mr. LeDoux served as the Preside ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD796.04K) is about average for companies of similar size in the US market ($USD618.59K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark LeDoux
Chairman & CEO33.67yrsUS$796.04k13% $5.3m
Kenneth Wolf
President4.5yrsUS$670.75k2.15% $869.3k
Michael Fortin
Chief Financial Officer4.5yrsUS$437.29k0.88% $356.7k
Eugene Quast
Vice President of Global Sales6.08yrsno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: NAII's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark LeDoux
Chairman & CEO33.67yrsUS$796.04k13% $5.3m
Joe Davis
Independent Director20.17yrsUS$139.30k1.47% $593.7k
Lee Weldon
Independent Director27.83yrsUS$135.30k1.89% $764.1k
Alan Dunn
Independent Director16.25yrsUS$137.30k0.76% $307.3k
Alan Lane
Independent Director15.83yrsUS$139.30k0.90% $363.4k
Laura Matherly
Independent Director0.33yrno datano data

17.8yrs

Average Tenure

65yo

Average Age

Experienced Board: NAII's board of directors are seasoned and experienced ( 17.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Natural Alternatives International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Natural Alternatives International, Inc.
  • Ticker: NAII
  • Exchange: NasdaqGM
  • Founded: 1980
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$40.440m
  • Shares outstanding: 6.49m
  • Website: https://www.nai-online.com

Number of Employees


Location

  • Natural Alternatives International, Inc.
  • 1535 Faraday Avenue
  • Carlsbad
  • California
  • 92008
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAIINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1987
NA2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1987

Biography

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally. It operates through two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. The company offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbs, and other nutritional supplements, as well as other health care products. It 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, the company sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company’s 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:16
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.