Natural Alternatives International Inc. Common Stock (NAII)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering this supplement manufacturer at $1.15, a market value of $25.4 million, against a book value multiple of 0.11 as calculated by FairStock. On the surface, that is a Graham-style bargain. But the numbers behind the asset tell a harder story. In fiscal 2026, the year ended 2026-06-30, revenue was $142.5 million, up from $129.9 million in fiscal 2025, the year ended 2025-06-30. Yet net income was negative $20.7 million, or diluted EPS of negative $3.43, worse than the negative $13.6 million and negative $2.28 in fiscal 2025, the year ended 2025-06-30. In the fiscal Q3 2026 quarter ended 2026-03-31, revenue was $35.5 million and net loss was $4.3 million. The company is growing sales but not profits, which suggests either price pressure, cost inflation, or underutilized capacity. Contract manufacturing is generally a competitive, low-margin business; the patent/trademark licensing segment may have some intangible value, but the consolidated returns are poor. FairStock's calculations show return on equity of negative 20.57%, return on capital employed of negative 2.47%, debt-to-equity of 1.03, and trailing free cash flow of negative $9.0 million, a negative 35.5% free cash flow yield. The Piotroski F-Score is 3/9 and the Altman Z-Score is 0.97, both pointing to weak financial condition. A 0.36 beta and a 52-week range of $1.11 to $4.96 show the stock has already fallen hard. A low price-to-book can be a trap when book value is being consumed by losses. I would need evidence of positive cash flow and stabilized margins before calling this cheap rather than distressed.

In plain English: Natural Alternatives International makes vitamins and supplements for other companies and licenses patents. The business is currently losing money; sales rose to $142.5 million in fiscal 2026 from $129.9 million in fiscal 2025, but its loss grew to $20.7 million. At $1.15, the stock trades far below its accounting book value, but because profits are negative and cash is going out, the price looks speculative rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer