NATURAL GROCERS BY VITAMIN C (NGVC)
US63888U1088 - Common Stock
NGVC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. NGVC scores excellent on profitability, but there are concerns on its financial health. NGVC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NGVC had positive earnings in the past year.
NGVC had a positive operating cash flow in the past year.
In the past 5 years NGVC has always been profitable.
In the past 5 years NGVC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NGVC (4.02%) is comparable to the rest of the industry.
With a decent Return On Equity value of 17.31%, NGVC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
NGVC has a Return On Invested Capital (6.00%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NGVC is significantly below the industry average of 10.24%.
The last Return On Invested Capital (6.00%) for NGVC is above the 3 year average (4.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 17.31% | ||
| ROIC | 6% |
ROA(3y)3.28%
ROA(5y)3.13%
ROE(3y)13.93%
ROE(5y)11.86%
ROIC(3y)4.92%
ROIC(5y)4.84%
1.3 Margins
Looking at the Profit Margin, with a value of 2.29%, NGVC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
NGVC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 3.28%, NGVC is doing good in the industry, outperforming 65.00% of the companies in the same industry.
NGVC's Operating Margin has improved in the last couple of years.
NGVC has a Gross Margin of 29.01%. This is in the better half of the industry: NGVC outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of NGVC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | 2.29% | ||
| GM | 29.01% |
OM growth 3Y3.33%
OM growth 5Y10.63%
PM growth 3Y1.85%
PM growth 5Y6.38%
GM growth 3Y1.63%
GM growth 5Y1.53%
2. Health
2.1 Basic Checks
NGVC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NGVC remains at a similar level compared to 1 year ago.
The number of shares outstanding for NGVC has been increased compared to 5 years ago.
Compared to 1 year ago, NGVC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 indicates that NGVC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.56, NGVC is doing worse than 62.50% of the companies in the same industry.
NGVC has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as NGVC would need 3.46 years to pay back of all of its debts.
The Debt to FCF ratio of NGVC (3.46) is better than 70.00% of its industry peers.
NGVC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NGVC (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.7
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.90 indicates that NGVC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, NGVC is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 0.17 indicates that NGVC may have some problems paying its short term obligations.
NGVC's Quick ratio of 0.17 is on the low side compared to the rest of the industry. NGVC is outperformed by 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
NGVC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.27%, which is quite impressive.
NGVC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
The Revenue has been growing slightly by 6.32% in the past year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)60.27%
EPS 3Y5.04%
EPS 5Y20.59%
EPS growth Q2Q78.95%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y3.23%
Revenue growth 5Y6.08%
Revenue growth Q2Q7.58%
3.2 Future
NGVC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.80% yearly.
Based on estimates for the next years, NGVC will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y-4%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y5.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NGVC is valuated correctly with a Price/Earnings ratio of 14.38.
NGVC's Price/Earnings ratio is rather cheap when compared to the industry. NGVC is cheaper than 82.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. NGVC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.40, which indicates a rather expensive current valuation of NGVC.
The rest of the industry has a similar Price/Forward Earnings ratio as NGVC.
When comparing the Price/Forward Earnings ratio of NGVC to the average of the S&P500 Index (20.72), we can say NGVC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
77.50% of the companies in the same industry are more expensive than NGVC, based on the Enterprise Value to EBITDA ratio.
80.00% of the companies in the same industry are more expensive than NGVC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
NGVC has a very decent profitability rating, which may justify a higher PE ratio.
NGVC's earnings are expected to decrease with -7.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.44%, NGVC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, NGVC pays a better dividend. On top of this NGVC pays more dividend than 82.50% of the companies listed in the same industry.
NGVC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
On average, the dividend of NGVC grows each year by 12.62%, which is quite nice.
NGVC has been paying a dividend for over 5 years, so it has already some track record.
NGVC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NGVC pays out 119.57% of its income as dividend. This is not a sustainable payout ratio.
NGVC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP119.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
NATURAL GROCERS BY VITAMIN C
NYSE:NGVC (5/2/2024, 7:09:39 PM)
After market: 16.82 0 (0%)16.82
+0.3 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap382.65M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 19.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 17.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.28% | ||
| PM (TTM) | 2.29% | ||
| GM | 29.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)60.27%
EPS 3Y5.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.32%
Revenue growth 3Y3.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y