📊 NAII Key Takeaways
Is Natural Alternatives International Inc. (NAII) a Good Investment?
Despite explosive revenue growth, the company exhibits severe operational distress with negative gross margins (4.2%), operating losses (-$2.5M), and deteriorating net income (-88.1% YoY). The company is burning cash operationally (-$10.4M) and lacks sufficient liquidity to sustain losses, with only $3.8M cash against $86.3M liabilities.
Despite a sharp rebound in revenue, fundamentals are weak with a 4.2% gross margin, operating losses, and negative net income. Liquidity is tightening given negative operating cash flow and a sub-1 quick ratio, though the absence of long-term debt and a solid current ratio provide some cushion. Until margins recover and cash generation turns positive, the risk profile outweighs the growth uptick.
Why Buy Natural Alternatives International Inc. Stock? NAII Key Strengths
- No long-term debt (Debt/Equity: 0.00x) reduces financial risk
- Decent current ratio of 1.87x provides short-term liquidity cushion
- Exceptional revenue growth at 14,292% YoY indicates potential market demand or successful business transformation
- Debt-free balance sheet
- Adequate current ratio supporting near-term obligations
- Revenue rebound suggesting potential demand recovery
NAII Stock Risks: Natural Alternatives International Inc. Investment Risks
- Negative free cash flow of -$12.3M indicates unsustainable operations requiring cash burn
- Extremely thin gross margin of 4.2% suggests structural profitability challenges in manufacturing or pricing power
- Net income declined 88.1% YoY despite massive revenue growth, indicating growth is non-profitable and destroys shareholder value
- Operating cash flow deeply negative at -$10.4M signals core business cannot fund operations
- Low cash reserves ($3.8M) relative to liabilities ($86.3M) provide minimal buffer for continued losses
- Sustained negative operating cash flow and FCF
- Very low gross margin and ongoing operating losses
- Liquidity pressure from low cash and sub-1 quick ratio
Key Metrics to Watch
- Gross margin trend - critical to assess if thin margins are temporary or structural
- Operating cash flow - must turn positive to indicate sustainable business model
- Operating income path to profitability - company must achieve positive EBIT to survive
- Cash burn rate and runway - with -$10.4M OCF, estimate months until cash depletion
- Gross margin (%)
- Operating cash flow
Natural Alternatives International Inc. (NAII) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Natural Alternatives International Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
NAII Profit Margin, ROE & Profitability Analysis
NAII vs Materials Sector: How Natural Alternatives International Inc. Compares
How Natural Alternatives International Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Natural Alternatives International Inc. Stock Overvalued? NAII Valuation Analysis 2026
Based on fundamental analysis, Natural Alternatives International Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Natural Alternatives International Inc. Balance Sheet: NAII Debt, Cash & Liquidity
NAII Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Natural Alternatives International Inc.'s revenue has declined by 27% over the 5-year period, indicating business contraction. The most recent EPS of $-1.23 indicates the company is currently unprofitable.
NAII Revenue Growth, EPS Growth & YoY Performance
NAII Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $34.1M | -$2.2M | $-0.37 |
| Q1 2026 | $33.2M | -$291.0K | $-0.05 |
| Q3 2025 | $25.1M | -$1.6M | $-0.27 |
| Q2 2025 | $25.2M | -$2.2M | $-0.37 |
| Q1 2025 | $33.2M | -$695.0K | $-0.12 |
| Q3 2024 | $25.1M | $485.0K | $0.08 |
| Q2 2024 | $25.2M | $1.8M | $0.31 |
| Q1 2024 | $34.0M | -$695.0K | $-0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Natural Alternatives International Inc. Dividends, Buybacks & Capital Allocation
NAII SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Natural Alternatives International Inc. (CIK: 0000787253)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NAII
What is the AI rating for NAII?
Natural Alternatives International Inc. (NAII) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NAII's key strengths?
Claude: No long-term debt (Debt/Equity: 0.00x) reduces financial risk. Decent current ratio of 1.87x provides short-term liquidity cushion. ChatGPT: Debt-free balance sheet. Adequate current ratio supporting near-term obligations.
What are the risks of investing in NAII?
Claude: Negative free cash flow of -$12.3M indicates unsustainable operations requiring cash burn. Extremely thin gross margin of 4.2% suggests structural profitability challenges in manufacturing or pricing power. ChatGPT: Sustained negative operating cash flow and FCF. Very low gross margin and ongoing operating losses.
What is NAII's revenue and growth?
Natural Alternatives International Inc. reported revenue of $32.7M.
Does NAII pay dividends?
Natural Alternatives International Inc. does not currently pay dividends.
Where can I find NAII SEC filings?
Official SEC filings for Natural Alternatives International Inc. (CIK: 0000787253) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NAII's EPS?
Natural Alternatives International Inc. has a diluted EPS of $-0.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NAII a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Natural Alternatives International Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NAII stock overvalued or undervalued?
Valuation metrics for NAII: ROE of -3.6% (sector avg: 14%), net margin of -7.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NAII stock in 2026?
Our dual AI analysis gives Natural Alternatives International Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NAII's free cash flow?
Natural Alternatives International Inc.'s operating cash flow is $-10.4M, with capital expenditures of $2.0M. FCF margin is -37.7%.
How does NAII compare to other Materials stocks?
Vs Materials sector averages: Net margin -7.3% (avg: 10%), ROE -3.6% (avg: 14%), current ratio 1.87 (avg: 1.6).