Natural Grocers Price To Earning vs. Operating Margin

NGVC Stock  USD 45.30  0.80  1.80%   
Based on Natural Grocers' profitability indicators, Natural Grocers' profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Natural Grocers' ability to earn profits and add value for shareholders. At present, Natural Grocers' EV To Sales is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.06, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.03. At present, Natural Grocers' Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 35.6 M, whereas Total Other Income Expense Net is forecasted to decline to (4.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.2938
Notably Up
Very volatile
Net Profit Margin0.01510.0273
Way Down
Very volatile
Operating Profit Margin0.03520.0378
Significantly Down
Slightly volatile
Pretax Profit Margin0.03090.0345
Moderately Down
Slightly volatile
Return On Assets0.05020.0399
Significantly Up
Slightly volatile
Return On Equity0.150.16
Notably Down
Pretty Stable
For Natural Grocers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Natural Grocers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Natural Grocers by utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Natural Grocers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Natural Grocers by over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Natural Grocers. If investors know Natural will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Natural Grocers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.29
Dividend Share
0.4
Earnings Share
1.34
Revenue Per Share
53.344
Quarterly Revenue Growth
0.097
The market value of Natural Grocers by is measured differently than its book value, which is the value of Natural that is recorded on the company's balance sheet. Investors also form their own opinion of Natural Grocers' value that differs from its market value or its book value, called intrinsic value, which is Natural Grocers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Natural Grocers' market value can be influenced by many factors that don't directly affect Natural Grocers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Natural Grocers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Natural Grocers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Natural Grocers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Natural Grocers by Operating Margin vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Natural Grocers's current stock value. Our valuation model uses many indicators to compare Natural Grocers value to that of its competitors to determine the firm's financial worth.
Natural Grocers by is rated below average in price to earning category among its peers. It is regarded fourth in operating margin category among its peers . The ratio of Price To Earning to Operating Margin for Natural Grocers by is about  238.93 . At present, Natural Grocers' Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Natural Grocers' earnings, one of the primary drivers of an investment's value.

Natural Operating Margin vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Natural Grocers

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
10.25 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Natural Grocers

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.04 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Natural Operating Margin Comparison

Natural Grocers is currently under evaluation in operating margin category among its peers.

Natural Grocers Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Natural Grocers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Natural Grocers will eventually generate negative long term returns. The profitability progress is the general direction of Natural Grocers' change in net profit over the period of time. It can combine multiple indicators of Natural Grocers, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income47 M49.3 M
Income Before Tax42.8 M44.9 M
Total Other Income Expense Net-4.2 M-4.4 M
Net Income33.9 M35.6 M
Income Tax Expense-8.9 M-8.4 M
Net Income Applicable To Common Shares26.7 M14.2 M
Net Income From Continuing Ops26.7 M16.6 M
Non Operating Income Net Other3.5 M3.7 M
Interest Income5.7 M4.3 M
Net Interest Income-3.8 M-4 M
Change To Netincome58.6 K55.7 K
Net Income Per Share 1.49  1.56 
Income Quality 2.17  2.33 
Net Income Per E B T 0.79  0.57 

Natural Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Natural Grocers. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Natural Grocers position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Natural Grocers' important profitability drivers and their relationship over time.

Use Natural Grocers in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Natural Grocers position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Natural Grocers will appreciate offsetting losses from the drop in the long position's value.

Natural Grocers Pair Trading

Natural Grocers by Pair Trading Analysis

The ability to find closely correlated positions to Natural Grocers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Natural Grocers when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Natural Grocers - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Natural Grocers by to buy it.
The correlation of Natural Grocers is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Natural Grocers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Natural Grocers by moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Natural Grocers can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Natural Grocers position

In addition to having Natural Grocers in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Small Blend Funds Thematic Idea Now

Small Blend Funds
Small Blend Funds Theme
Fund or Etfs that invest in stocks of small to mid-sized entities that have characteristics of both growth and value companies. The Small Blend Funds theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Blend Funds Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Natural Grocers by offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Natural Grocers' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Natural Grocers By Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Natural Grocers By Stock:
Check out Correlation Analysis.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project Natural Grocers' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Natural Grocers by at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Natural Grocers' income statement, its balance sheet, and the statement of cash flows.
Potential Natural Grocers investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Natural Grocers investors may work on each financial statement separately, they are all related. The changes in Natural Grocers's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Natural Grocers's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.