📊 NAII Key Takeaways
Is NAII a Good Investment? Thesis Analysis
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.
Why Buy 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
NAII Investment Risks to Consider
- 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
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
NAII Financial Metrics
💡 AI Analyst Insight
NATURAL ALTERNATIVES INTERNATIONAL INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
NAII Profitability Ratios
NAII vs Default Sector
How NATURAL ALTERNATIVES INTERNATIONAL INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NAII Overvalued or Undervalued?
Based on fundamental analysis, NATURAL ALTERNATIVES INTERNATIONAL INC has mixed fundamental signals relative to the Default 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.
NAII Balance Sheet & Liquidity
NAII 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NAII Quarterly 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.
NAII Capital Allocation
NAII SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 75% 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.
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.
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 STRONG SELL rating with 75% 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: 15%), net margin of -7.3% (sector avg: 12%). 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 STRONG 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 Default stocks?
Vs Default sector averages: Net margin -7.3% (avg: 12%), ROE -3.6% (avg: 15%), current ratio 1.87 (avg: 1.8).