Earnings Watch: Natural Grocers by Vitamin Cottage, Inc. (NGVC)

Company Profile:

Natural Grocers by Vitamin Cottage, Inc. operates natural and organic groceries, and dietary supplement retail stores in the United States. The Company sells natural and organic groceries and dietary supplements. The Company’s grocery products include: bulk food and private label products, dry, frozen and canned groceries, meats and seafood, dairy products and dairy substitutes, prepared foods, bread and baked goods, and beverages. Natural Grocers’ other products include body care, pet care, household and general merchandise, and books and handouts. As of November 9, 2016, the company operated 127 stores in 19 states. Natural Grocers by Vitamin Cottage, Inc. operates its retail stores under the Natural Grocers by Vitamin Cottage trademark. The company was founded in 1955 and is headquartered in Lakewood, Colorado.

Recent News:

The Company will release its fourth quarter and fiscal year 2016 financial results after the market close on Thursday, November 17, 2016.

For third quarter, net sales increased 13.0% to $179.3 million and net income was $2.7 million with diluted earnings per share of $0.12. For year to date fiscal 2016, net sales increased 13.4% to $524.5 million year to date fiscal 2015 and net income was $10.0 million with diluted earnings per share of $0.44 year to date

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NGVC’s strengths can be seen in its better growth, better profitability, strong solvency and better efficiency compared with its peers. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI stands at 60.68 with positive bias. We rate Natural Grocers by Vitamin Cottage, Inc. (NGVC) a STRONG BUY.