/
Natural Grocers is an expanding specialty retailer of natural and organic groceries and dietary supplements. We focus on providing high-quality products at affordable prices, exceptional customer service, nutrition education and community outreach.
Operating margin is thin at 4.66%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 7.2%, steady but not accelerating. Free cash flow declined 33% despite revenue growth, conversion is weakening.
Free cash flow declined 33% versus the prior year, cash generation momentum has weakened. Net debt of $315M represents 13.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$1.34B
▲ +7.2% YoY
Net Income (TTM)
$48M
▲ +36.9% YoY
Op. Margin
4.77%
▲ +0.9pp YoY
ROIC
9.33%
▲ +2.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$17M
▼ -33.5% YoY
Op. Cash Flow (TTM)
$62M
▼ -25.0% YoY
Net Debt
$304M
Cash & Equiv.
$21M
5Y CAGR: +5.1%
5Y CAGR: -9.5%
Continue Research