Natural Grocers by Vitamin Cottage, Inc. (NGVC) stock analysis

P/E below its 5-year median

Natural Grocers by Vitamin Cottage's P/E of 14.2 is below its own 5-year median of 15.3.

P/E below the industry

Natural Grocers by Vitamin Cottage's P/E of 14.2 is below the Consumer staples median of 23.3.

EV/EBITDA above its 5-year median

Natural Grocers by Vitamin Cottage's EV/EBITDA of 6.9 is above its 5-year median of 6.2.

P/B below the industry

Natural Grocers by Vitamin Cottage's price-to-book of 2.81 is below the Consumer staples median of 2.93.

Trading below fair value

The share price of $29.15 is below our fair value estimate of $31.03.

Margin of safety under 20%

The price is 6.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 28.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 9.1% over the last twelve months, against a 5-year average of 18.3% a year.

Growing slower than the industry

Revenue grew 2.0% over the last twelve months; the Consumer staples median is 3.8%.

Guidance lowered

Natural Grocers by Vitamin Cottage lowered its Fiscal 2026 Number of relocations/remodels outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 29.6% over the last twelve months, against 29.9% a year earlier.

Return on equity over 15%

Return on equity was 21.6% over the last twelve months and averaged 17.1% over five years.

Return on capital over 10%

Return on invested capital was 24.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Natural Grocers by Vitamin Cottage's return on equity of 21.6% is above the Consumer staples median of 6.3%.

Earnings grew over 5 years

Net income grew 18.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 3.5% over the last twelve months, against a 5-year average of 2.4%.

Net margin above the industry

Natural Grocers by Vitamin Cottage's net margin of 3.5% is above the Consumer staples median of 0.7%.

Low debt

Debt is 0.6% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 0.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 4871% of total debt.

Interest well covered

Operating income covers interest expense 23.4 times.

Short-term assets cover short-term debts

Current assets are 1.10 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.54; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Natural Grocers by Vitamin Cottage paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Natural Grocers by Vitamin Cottage yields 2.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 27.5% of net income.

Covered by free cash flow

Dividends take 57.8% of free cash flow.