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Natural Alternatives International

Nasdaq:NAII
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NAII
Nasdaq
$63M
Market Cap
  1. Home
  2. US
  3. Household
Company description

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally. The last earnings update was 48 days ago. More info.


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NAII Share Price and Events
7 Day Returns
-0.1%
NasdaqGM:NAII
0.7%
US Personal Products
0.8%
US Market
1 Year Returns
-5.4%
NasdaqGM:NAII
20.6%
US Personal Products
11%
US Market
NAII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Natural Alternatives International (NAII) -0.1% 2.2% -13% -5.4% -26.1% 54.2%
US Personal Products 0.7% -0.6% 7.4% 20.6% 54.6% 59.1%
US Market 0.8% 4.3% 6.1% 11% 40.2% 45%
1 Year Return vs Industry and Market
  • NAII underperformed the Personal Products industry which returned 20.6% over the past year.
  • NAII underperformed the Market in United States of America which returned 11% over the past year.
Price Volatility
NAII
Industry
5yr Volatility vs Market

Value

 Is Natural Alternatives International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Natural Alternatives International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Natural Alternatives International.

NasdaqGM:NAII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:NAII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.681 (1 + (1- 21%) (0%))
0.786
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGM:NAII using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Natural Alternatives International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:NAII DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 0.54 Est @ -60.35% 0.50
2021 0.32 Est @ -41.42% 0.27
2022 0.23 Est @ -28.18% 0.18
2023 0.18 Est @ -18.91% 0.14
2024 0.16 Est @ -12.41% 0.11
2025 0.15 Est @ -7.87% 0.10
2026 0.14 Est @ -4.69% 0.09
2027 0.14 Est @ -2.46% 0.08
2028 0.14 Est @ -0.91% 0.07
2029 0.14 Est @ 0.18% 0.07
Present value of next 10 years cash flows $1.00
NasdaqGM:NAII DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $0.14 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$2.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2.96 ÷ (1 + 7.5%)10
$1.44
NasdaqGM:NAII Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1.00 + $1.44
$2.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2.44 / 7.17
$0.34
NasdaqGM:NAII Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.34
Current discount Discount to share price of $8.79
= -1 x ($8.79 - $0.34) / $0.34
-2483.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Natural Alternatives International is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Natural Alternatives International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Natural Alternatives International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:NAII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.96
NasdaqGM:NAII Share Price ** NasdaqGM (2019-11-11) in USD $8.79
United States of America Personal Products Industry PE Ratio Median Figure of 21 Publicly-Listed Personal Products Companies 17.22x
United States of America Market PE Ratio Median Figure of 2,909 Publicly-Listed Companies 18.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Natural Alternatives International.

NasdaqGM:NAII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:NAII Share Price ÷ EPS (both in USD)

= 8.79 ÷ 0.96

9.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Natural Alternatives International is good value based on earnings compared to the US Personal Products industry average.
  • Natural Alternatives International is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Natural Alternatives International's expected growth come at a high price?
Raw Data
NasdaqGM:NAII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
17.1%per year
United States of America Personal Products Industry PEG Ratio Median Figure of 6 Publicly-Listed Personal Products Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Natural Alternatives International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Natural Alternatives International's assets?
Raw Data
NasdaqGM:NAII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $11.12
NasdaqGM:NAII Share Price * NasdaqGM (2019-11-11) in USD $8.79
United States of America Personal Products Industry PB Ratio Median Figure of 43 Publicly-Listed Personal Products Companies 2.72x
United States of America Market PB Ratio Median Figure of 5,043 Publicly-Listed Companies 1.74x
NasdaqGM:NAII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:NAII Share Price ÷ Book Value per Share (both in USD)

= 8.79 ÷ 11.12

0.79x

* Primary Listing of Natural Alternatives International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Natural Alternatives International is good value based on assets compared to the US Personal Products industry average.
X
Value checks
We assess Natural Alternatives International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Natural Alternatives International has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Natural Alternatives International, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Natural Alternatives International expected to grow at an attractive rate?
  • Natural Alternatives International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Natural Alternatives International's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Natural Alternatives International's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:NAII Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:NAII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 17.1%
United States of America Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United States of America Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:NAII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:NAII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 138 7 7
2019-03-31 147 5 10
2018-12-31 144 5 10
2018-09-30 141 4 6
2018-06-30 132 2 5
2018-03-31 125 11 4
2017-12-31 119 14 2
2017-09-30 116 17 6
2017-06-30 122 14 7
2017-03-31 125 15 9
2016-12-31 130 9 11
2016-09-30 127 11 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Natural Alternatives International's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Natural Alternatives International is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:NAII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Natural Alternatives International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:NAII Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.96
2019-03-31 1.42
2018-12-31 1.44
2018-09-30 0.92
2018-06-30 0.76
2018-03-31 0.56
2017-12-31 0.36
2017-09-30 0.94
2017-06-30 1.10
2017-03-31 1.39
2016-12-31 1.74
2016-09-30 1.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Natural Alternatives International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Natural Alternatives International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Natural Alternatives International has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Natural Alternatives International's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Natural Alternatives International's year on year earnings growth rate has been positive over the past 5 years.
  • Natural Alternatives International's 1-year earnings growth exceeds its 5-year average (29.5% vs 14.5%)
  • Natural Alternatives International's earnings growth has exceeded the US Personal Products industry average in the past year (29.5% vs 19.9%).
Earnings and Revenue History
Natural Alternatives International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Natural Alternatives International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:NAII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 138.29 6.54 15.21
2019-03-31 147.24 9.62 14.03
2018-12-31 143.60 9.68 13.73
2018-09-30 140.90 6.18 13.84
2018-06-30 132.44 5.05 13.89
2018-03-31 125.41 3.70 16.68
2017-12-31 118.73 2.40 15.62
2017-09-30 115.95 6.18 12.66
2017-06-30 121.95 7.24 12.30
2017-03-31 125.46 9.14 11.65
2016-12-31 130.33 11.42 11.36
2016-09-30 126.68 10.82 12.60
2016-06-30 114.20 9.55 11.00
2016-03-31 101.08 7.09 10.21
2015-12-31 90.69 4.86 9.44
2015-09-30 82.40 4.07 9.03
2015-06-30 79.51 3.35 8.58
2015-03-31 78.11 3.45 8.64
2014-12-31 77.63 3.28 8.46
2014-09-30 75.48 2.39 8.00
2014-06-30 73.94 1.99 7.76
2014-03-31 69.57 1.50 8.16
2013-12-31 66.28 1.05 8.58
2013-09-30 63.49 0.96 9.15
2013-06-30 62.80 1.57 9.98
2013-03-31 66.88 1.75 8.09 1.10
2012-12-31 68.47 2.64 7.66 1.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Natural Alternatives International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Natural Alternatives International used its assets less efficiently than the US Personal Products industry average last year based on Return on Assets.
  • Natural Alternatives International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Natural Alternatives International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Natural Alternatives International has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Natural Alternatives International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Natural Alternatives International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Natural Alternatives International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Natural Alternatives International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Natural Alternatives International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Natural Alternatives International has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Natural Alternatives International Company Filings, last reported 4 months ago.

NasdaqGM:NAII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 76.08 0.00 25.04
2019-03-31 77.03 0.00 27.66
2018-12-31 75.13 0.00 30.27
2018-09-30 71.88 0.00 27.61
2018-06-30 68.25 0.00 23.61
2018-03-31 62.84 0.00 27.62
2017-12-31 60.86 0.00 28.84
2017-09-30 61.90 0.00 27.71
2017-06-30 61.15 0.00 27.84
2017-03-31 59.91 0.00 22.59
2016-12-31 59.96 0.00 21.36
2016-09-30 56.00 0.00 17.85
2016-06-30 53.73 0.00 19.75
2016-03-31 49.56 0.00 16.30
2015-12-31 47.26 0.00 22.63
2015-09-30 45.05 0.00 16.44
2015-06-30 43.86 0.00 18.55
2015-03-31 44.86 0.00 19.42
2014-12-31 44.47 0.00 20.12
2014-09-30 43.73 0.00 16.40
2014-06-30 42.44 0.00 19.51
2014-03-31 41.18 0.00 15.22
2013-12-31 40.50 0.00 16.42
2013-09-30 40.26 0.00 14.78
2013-06-30 40.34 0.00 16.70
2013-03-31 40.01 0.00 14.64
2012-12-31 39.66 0.00 17.00
  • Natural Alternatives International has no debt.
  • Natural Alternatives International has not taken on any debt in the past 5 years.
  • Natural Alternatives International has no debt, it does not need to be covered by operating cash flow.
  • Natural Alternatives International has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Natural Alternatives International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Natural Alternatives International has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Natural Alternatives International dividends.
If you bought $2,000 of Natural Alternatives International shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Natural Alternatives International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Natural Alternatives International's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:NAII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1942 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Natural Alternatives International has not reported any payouts.
  • Unable to verify if Natural Alternatives International's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Natural Alternatives International's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Natural Alternatives International has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Natural Alternatives International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Natural Alternatives International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Natural Alternatives International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Natural Alternatives International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark LeDoux
COMPENSATION $796,040
AGE 65
TENURE AS CEO 33.3 years
CEO Bio

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 President of Transformative Health Products, Inc., a wholly-owned subsidiary of Natural Alternatives International Inc. and Chief Executive Officer of Disposition Company, Inc., a wholly-owned subsidiary of Natural Alternatives International Inc. since February 2009. He served as the President of Natural Alternatives International from January 1998 to 2001 and previously from August 1986 to December 1996. He served as the President and Chief Executive Officer of Natural Alternatives Inc. from 1981 to 1986. From 1976 to 1980, Mr. LeDoux served as an Executive Vice President and Chief Operating Officer of Kovac Laboratories. He founded Natural Alternatives International in 1980. He has been the Chairman of the Board of NAIE, a wholly-owned subsidiary of Natural Alternatives International Inc. since 1999. He has been the Chairman of Natural Alternatives International Inc. since 2001 and also has been its Director since August 1986. He has been Director of The Council for Responsible Nutrition since January 2014. He serves as a Director of Natural Products Association. He serves as a Director of Real Health Laboratories Inc. He attended the University of Oklahoma and graduated Cum Laude with a Bachelors of Arts and Letters in 1975. Mr. LeDoux graduated from Western State University College of Law in 1979, receiving a Juris Doctor degree. He is also a Graduate of Stanford University’s Program for Small Business Executives.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Natural Alternatives International management team in years:

4.9
Average Tenure
59
Average Age
  • The tenure for the Natural Alternatives International management team is about average.
Management Team

Mark LeDoux

TITLE
Chairman & CEO
COMPENSATION
$796K
AGE
65
TENURE
33.3 yrs

Ken Wolf

TITLE
President
COMPENSATION
$671K
AGE
58
TENURE
4.1 yrs

Michael Fortin

TITLE
Chief Financial Officer
COMPENSATION
$437K
AGE
42
TENURE
4.1 yrs

Eugene Quast

TITLE
Vice President of Global Sales
AGE
60
TENURE
5.7 yrs
Board of Directors Tenure

Average tenure and age of the Natural Alternatives International board of directors in years:

18.8
Average Tenure
65
Average Age
  • The average tenure for the Natural Alternatives International board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mark LeDoux

TITLE
Chairman & CEO
COMPENSATION
$796K
AGE
65
TENURE
18.8 yrs

Joe Davis

TITLE
Independent Director
COMPENSATION
$139K
AGE
85
TENURE
19.8 yrs

Lee Weldon

TITLE
Independent Director
COMPENSATION
$135K
AGE
80
TENURE
27.4 yrs

Alan Lane

TITLE
Independent Director
COMPENSATION
$139K
AGE
57
TENURE
15.4 yrs

Alan Dunn

TITLE
Independent Director
COMPENSATION
$137K
AGE
64
TENURE
15.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Natural Alternatives International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Natural Alternatives International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Update: Natural Alternatives International (NASDAQ:NAII) Stock Gained 82% In The Last Five Years

View our latest analysis for Natural Alternatives International In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During five years of share price growth, Natural Alternatives International achieved compound earnings per share (EPS) growth of 45% per year. … NasdaqGM:NAII Past and Future Earnings, September 2nd 2019 It might be well worthwhile taking a look at our free report on Natural Alternatives International's earnings, revenue and cash flow.

Simply Wall St -

Is Natural Alternatives International, Inc.'s (NASDAQ:NAII) CEO Paid Enough Relative To Peers?

View our latest analysis for Natural Alternatives International How Does Mark LeDoux's Compensation Compare With Similar Sized Companies? … You can see, below, how CEO compensation at Natural Alternatives International has changed over time. … NasdaqGM:NAII CEO Compensation, August 13th 2019 Is Natural Alternatives International, Inc.

Simply Wall St -

What Type Of Shareholder Owns Natural Alternatives International, Inc.'s (NASDAQ:NAII)?

With a market capitalization of US$80m, Natural Alternatives International is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Natural Alternatives International NasdaqGM:NAII Ownership Summary, July 23rd 2019 What Does The Institutional Ownership Tell Us About Natural Alternatives International? … Insider Ownership Of Natural Alternatives International While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Do You Know What Natural Alternatives International, Inc.'s (NASDAQ:NAII) P/E Ratio Means?

Looking at earnings over the last twelve months, Natural Alternatives International has a P/E ratio of 8.66. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Natural Alternatives International: P/E of 8.66 = $12.3 ÷ $1.42 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On Natural Alternatives International's P/E Ratio Natural Alternatives International has a P/E of 8.7.

Simply Wall St -

Does Natural Alternatives International, Inc.’s (NASDAQ:NAII) ROCE Reflect Well On The Business?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Natural Alternatives International: 0.16 = US$13m ÷ (US$98m - US$18m) (Based on the trailing twelve months to March 2019.) So, Natural Alternatives International has an ROCE of 16%. … Do Natural Alternatives International's Current Liabilities Skew Its ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Announcing: Natural Alternatives International (NASDAQ:NAII) Stock Increased An Energizing 118% In The Last Five Years

Check out our latest analysis for Natural Alternatives International While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Over half a decade, Natural Alternatives International managed to grow its earnings per share at 45% a year.

Simply Wall St -

Here's What We Think About Natural Alternatives International, Inc.'s (NASDAQ:NAII) CEO Pay

In 1986 Mark LeDoux was appointed CEO of Natural Alternatives International, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mark LeDoux's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Much Are Natural Alternatives International, Inc. (NASDAQ:NAII) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Natural Alternatives International, Inc. … The Last 12 Months Of Insider Transactions At Natural Alternatives International. … Natural Alternatives International insiders didn't buy any shares over the last year

Simply Wall St -

Could Natural Alternatives International, Inc.'s (NASDAQ:NAII) Investor Composition Influence The Stock Price?

Every investor in Natural Alternatives International, Inc. … With a market capitalization of US$83m, Natural Alternatives International is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Natural Alternatives International

Simply Wall St -

Did Natural Alternatives International, Inc. (NASDAQ:NAII) Use Debt To Deliver Its ROE Of 13%?

Our data shows Natural Alternatives International has a return on equity of 13% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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.

Details
Name: Natural Alternatives International, Inc.
NAII
Exchange: NasdaqGM
Founded: 1980
$63,000,690
7,167,314
Website: http://www.nai-online.com
Address: Natural Alternatives International, Inc.
1535 Faraday Avenue,
Carlsbad,
California, 92008,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM NAII Common Stock Nasdaq Global Market US USD 01. Sep 1987
DB NA2 Common Stock Deutsche Boerse AG DE EUR 01. Sep 1987
Number of employees
Current staff
Staff numbers
271
Natural Alternatives International employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 23:41
End of day share price update: 2019/11/11 00:00
Last earnings filing: 2019/09/24
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.