Quality Investor

Natural Grocers by Vitamin Cottage, Inc.

Rank #57Hypergrowth

NGVC · NYSE · Consumer Defensive

Natural Grocers by Vitamin Cottage, Inc. (NGVC) — Rank #57 by gross profitability (GP/assets 0.58) · ROE 19.4% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001547459 · all metrics point-in-time as of the filing date.

About

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States.

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The company's stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers, Vitamin Cottage, Health Hotline, Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. The company was formerly known as Vitamin Cottage Natural Food Markets, Inc. Natural Grocers by Vitamin Cottage, Inc.

was founded in 1955 and is headquartered in Lakewood, Colorado.

Industry
Grocery Stores
Sector
Consumer Defensive
State
DE
Filer Category
Accelerated filer
Fiscal Year End
September 30

Price History

NGVC+185.0% · +23.3% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$683.31M

P/E (annual)

14.8

P/S (annual)

0.5

P/B

2.9

P/OCF (annual)

12.4

Shareholder Yield

-1.9%

Employees

3,455

Industry

Grocery Stores

Exchange

NYSE

Signal Flags

3 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.58
Return on equity
19.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.87
Current ratio
1.10×
Net cash
$16.02M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

1/2 pass
Revenue growth
73.1%
Piotroski F-Score
N/A
Share dilution
3.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

12.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.5% — per-share value needs a total required return of 16.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 22.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.0%

r = 10% (base)

12.6%

r = 12%

16.6%

Net debt / market cap: -2.3%

Base FCF: $24.1M3Y mean FCF: $19.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

10.4xCheap
10.4xmed 21.7x57.9x

P / S

Price / revenue per share

0.2xCheap
0.2xmed 0.3x0.6x

P / B

Price / book value per share

1.4xCheap
1.3xmed 2.0x3.2x

P / GP

Price / gross profit per share

0.7xCheap
0.7xmed 1.1x2.0x

P / FCF

Price / free cash flow per share

19.2xFair
8.0xmed 19.2x28.0x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.58

Primary signal (Novy-Marx).

Return on equity

19.4%

Gross margin

29.9%

Revenue growth (YoY)

73.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018202020212022
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.9%

Revenue CAGR (5Y)

5.1%

Earnings CAGR (3Y)

29.5%

FCF CAGR (3Y)

27.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.87

Current ratio

1.10×

Quick ratio

0.18×

Net cash

$16.02M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$24.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.48

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
23.7%5/5 Strong
FCF coverage
2.19×4/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.87 · IC 20.24×4/5 Strong

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20162022
Op. Leverage
Hypergrowth