Natural Grocers by Vitamin Cottage, Inc.
Natural Grocers by Vitamin Cottage, Inc. Fundamental Analysis
Natural Grocers by Vitamin Cottage, Inc. (NGVC) shows moderate financial fundamentals with a PE ratio of 12.43, profit margin of 3.58%, and ROE of 23.11%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 7.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NGVC's fundamental strength across five key dimensions:
Efficiency Score
WeakNGVC struggles to generate sufficient returns from assets.
Valuation Score
ModerateNGVC shows balanced valuation metrics.
Growth Score
ExcellentNGVC delivers strong and consistent growth momentum.
Financial Health Score
ModerateNGVC shows balanced financial health with some risks.
Profitability Score
ModerateNGVC maintains healthy but balanced margins.
Key Financial Metrics
Is NGVC Expensive or Cheap?
P/E Ratio
NGVC trades at 12.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NGVC's PEG of 4.18 indicates potential overvaluation.
Price to Book
The market values Natural Grocers by Vitamin Cottage, Inc. at 2.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.08 times EBITDA. This is generally considered low.
How Well Does NGVC Make Money?
Net Profit Margin
For every $100 in sales, Natural Grocers by Vitamin Cottage, Inc. keeps $3.58 as profit after all expenses.
Operating Margin
Core operations generate 4.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.11 in profit for every $100 of shareholder equity.
ROA
Natural Grocers by Vitamin Cottage, Inc. generates $7.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Natural Grocers by Vitamin Cottage, Inc. generates limited operating cash flow of $108.30M, signaling weaker underlying cash strength.
Free Cash Flow
Natural Grocers by Vitamin Cottage, Inc. produces free cash flow of $93.23M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.05 in free cash annually.
FCF Yield
NGVC converts 15.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NGVC Stacks Against Its Sector Peers
| Metric | NGVC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.43 | 23.01 | Better (Cheaper) |
| ROE | 23.11% | 1228.00% | Weak |
| Net Margin | 3.58% | -4010.00% (disorted) | Weak |
| Debt/Equity | 1.48 | 0.78 | Weak (High Leverage) |
| Current Ratio | 1.07 | 2.35 | Neutral |
| ROA | 7.16% | -157546.00% (disorted) | Weak |
NGVC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Natural Grocers by Vitamin Cottage, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.92%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
127.72%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-18.41%
Industry Style: Defensive, Dividend, Low Volatility
Declining