Natural Alternatives International's (NASDAQ:NAII) earnings have declined over year, contributing to shareholders 28% loss
Natural Alternatives International, Inc. (NASDAQ:NAII) shareholders should be happy to see the share price up 19% in the last month. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 28% in one year, under-performing the market.
While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
See our latest analysis for Natural Alternatives International
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unhappily, Natural Alternatives International had to report a 25% decline in EPS over the last year. This proportional reduction in earnings per share isn't far from the 28% decrease in the share price. Given the lower EPS we might have expected investors to lose confidence in the stock, but that doesn't seemed to have happened. Rather, the share price has approximately tracked EPS growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It might be well worthwhile taking a look at our free report on Natural Alternatives International's earnings, revenue and cash flow.
A Different Perspective
We regret to report that Natural Alternatives International shareholders are down 28% for the year. Unfortunately, that's worse than the broader market decline of 18%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Natural Alternatives International better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Natural Alternatives International you should be aware of.
We will like Natural Alternatives International better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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