Natural Grocers by Vitamin Cottage

NGVC

Grocery Stores · Consumer Defensive

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Strong

Stability

Strong

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

Natural Grocers by Vitamin Cottage is a grocery store chain that sells organic and natural foods, vitamins, and supplements. It focuses on customers who want healthier, chemical-free products and has strict standards — for example, it does not sell products with artificial colors, flavors, or sweeteners. The company operates mostly in the western and central United States and has around 170 stores.

The company makes money the traditional grocery way: customers pay for products in stores, and Natural Grocers keeps a portion after paying for the goods it sells. Its gross margin of about 29% is decent for grocery retail, and its loyalty program and strict product standards help it stand out from larger competitors like Whole Foods and Sprouts. The main risk is that grocery retail is highly competitive and operates on thin margins, meaning any increase in costs or loss of customers to bigger chains could quickly pressure profits.

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

+1.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-5.9% YoY

YoY Growth Rate

Earnings declining

Insider Activity

54.1%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$17M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth context

Natural Grocers by Vitamin Cottage is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

29.3%

Modest — 29.3% gross margin

Profit after running costs

Operating Margin

4.5%

Thin — 4.5% operating margin

Return on the money invested

ROCE

11.4%

Below par — 11.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+2.0%

Nearly flat sales (+2.0% YoY)

Profit growth

EPS YoY

+7.9%

Modest earnings growth (+7.9% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

313%

Turns 313% of profit into real cash

Spare cash per sale

FCF Margin

5.3%

Thin free cash flow (5.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

1.34

Elevated debt (1.34)

Covers its interest

Interest Cover

23.60x

Comfortably covers interest (23.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.4x

no trend

Attractive valuation — P/E 13.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-0.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

1.78%

no trend

Small dividend — 1.78% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+23.9%

no trend

Dividend growing fast (23.9% YoY)

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