Natural Alternatives International (NAII) AI Stock Analysis

• Market Cap: $18.84M
• Dividend Yield: N/A
• Average Volume (3M): 5.76K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 13.83%
• EPS Growth: -82.27%
• Country: US
• Employees: 296
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.17
• Shares Outstanding: 6,176,778
• 10 Day Avg. Volume: 6,352
• 30 Day Avg. Volume: 5,760
• 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: 3.55
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: -12.72
• 1Y Price Target: $3.00
• Price Target Upside: 0.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $3.00 ▲(0.33% Upside)

Natural Alternatives International's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant financial challenges, including declining profitability and cash flow issues, which are reflected in its low financial performance score. The technical analysis indicates bearish momentum, further contributing to the low overall score. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, also weigh heavily on the stock's attractiveness.

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 faces financial challenges, with declining profitability and cash flow issues. While revenue has shown some growth, the company struggles with operational inefficiencies and increasing leverage. The negative return on equity and cash flow constraints highlight the need for strategic improvements to enhance financial stability and shareholder value.

Income Statement

Natural Alternatives International has experienced fluctuating revenue growth, with a recent positive growth rate of 3.27% after a decline in previous years. However, profitability metrics such as the gross profit margin (6.95%) and net profit margin (-10.48%) indicate challenges in maintaining profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 0.86 suggests moderate leverage, but the increasing trend in debt levels is concerning. The return on equity is negative, reflecting recent net losses and indicating inefficiencies in generating returns for shareholders. The equity ratio is not available, limiting a full assessment of financial stability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth (-169.76%), indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.21, suggesting challenges in converting income into cash. The free cash flow to net income ratio of 0.39 further underscores cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.72M	129.58M	113.80M	154.01M	170.97M	178.52M
Gross Profit	9.15M	9.01M	6.87M	18.16M	30.51M	30.44M
EBITDA	-5.27M	-5.26M	-4.46M	11.09M	20.66M	16.58M
Net Income	-13.57M	-13.57M	-7.22M	2.52M	10.71M	10.77M
Balance Sheet
Total Assets	166.29M	368.00K	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	97.86M	97.86M	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	2.32M	2.32M	-4.51M	-6.50M	-14.62M	15.70M
Operating Cash Flow	5.93M	5.93M	-1.50M	7.02M	11.87M	20.81M
Investing Cash Flow	-3.61M	-3.61M	-3.02M	-13.47M	-26.46M	-5.04M
Financing Cash Flow	-1.97M	-1.97M	2.89M	-1.78M	4.29M	-14.11M

Natural Alternatives International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.99
• 50DMA: Negative
• 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 Negative. The current price of 2.99 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.57, and below the 200-day MA of 3.63, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	289.58M	21.78	8.95%	―	4.33%	-6.33%
FTLF	75 Outperform	178.90M	23.94	24.87%	―	3.91%	-1.39%
USNA	64 Neutral	528.24M	15.69	7.90%	―	2.75%	-37.25%
HLF	63 Neutral	925.89M	2.75	-49.21%	―	-2.25%	288.79%
HAIN	47 Neutral	148.98M	-0.26	-111.75%	―	-10.17%	-609.02%
NAII	42 Neutral	$18.84M	―	-17.98%	―	13.83%	-82.27%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Natural Alternatives International Corporate Events

Natural Alternatives International Secures New Manufacturing Agreement

On July 16, 2025, Natural Alternatives International, Inc. (NAI) and its subsidiary entered into a new Manufacturing Agreement with The Juice Plus+ Company, effective immediately and replacing the previous agreement set to expire on August 6, 2025. This agreement, which extends their 30+ year partnership, will see NAI manufacture and supply Juice Plus+ products across 24 countries until July 16, 2027. The renewed contract underscores the companies’ shared commitment to delivering high-quality nutritional products and is expected to be mutually beneficial, strengthening NAI’s position in the global nutritional supplement market.

Natural Alternatives Increases CFO Salary Effective July 2025

Natural Alternatives International, Inc. has amended the employment agreement with its Chief Financial Officer, Michael E. Fortin, to increase his annual base salary to $365,000, effective July 1, 2025. This adjustment reflects the company’s ongoing commitment to retaining key leadership and may impact its financial planning and stakeholder relations.

Natural Alternatives International Amends Credit Facility Agreement

On June 20, 2025, Natural Alternatives International, Inc. (NAI) amended its credit facility with Wells Fargo Bank, extending it to December 31, 2026. The amendment reduces the maximum borrowing amount from $12.5 million to $10 million and uses NAI’s powder processing facility in Carlsbad, California, as security. This adjustment, which modifies previous agreements and maintains the 2019 security agreement, reflects NAI’s strategic financial management and could impact its operational flexibility.