Natural Alternatives International

NAII

Packaged Foods · Consumer Defensive

Price

$2.22

-0.04 (-1.77%)

Market Cap

$13.9M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count falling — buybacks

−6.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 6.4M (2021) → 5.9M (2025)

Natural Alternatives International (NAII) makes nutritional supplements and ingredients for other companies to sell under their own brand names. Its main product is beta-alanine, a sports nutrition ingredient it sells under the CarnoSyn trademark. Customers are mostly large supplement brands, sports nutrition companies, and retailers who use NAII's ingredients in their own products.

NAII earns money by manufacturing and supplying these ingredients and finished supplements to its customers, rather than selling directly to consumers. It operates primarily in the United States with some international sales, and its CarnoSyn brand gives it a degree of protection through patents and trademarks in the beta-alanine market. However, the company is currently losing money, with thin gross margins around 7% and a negative operating margin, which signals that costs are eating up most of its revenue — the key risk is whether it can cut costs or grow sales enough to return to profitability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-265.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2M/ year

↓ Declining (-5% vs prior year)

1.4% of revenue

Below sector average (2%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

18.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$12M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Natural Alternatives International is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

10.4%

Thin — 10.4% gross margin

Operating Margin

-5.7%

Losing money on operations — -5.7%

ROCE

-2.5%

Weak — -2.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+10.4%

Steady sales growth (10.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

-3.9%

Burning cash (-3.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.16

Conservative — low debt load (0.16)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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