What is Natural Alternatives International Gross Margin %?
Natural Alternatives InternationalNAII +0.82%49 Gross Margin % is 1.08% as of Mar. 2026, which is 94% below its 10-year median of 17.05. GuruFocus rates NAII with a GF Score™ of 49/100 and a GF Value™ of $5.31 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,902 Consumer Packaged Goods companies, Natural Alternatives International ranks worse than 90.38% on this metric.
Natural Alternatives International (NAS:NAII) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Natural Alternatives International had a gross margin of 1.08% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Natural Alternatives International Gross Margin % Related Terms
Natural Alternatives International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Natural Alternatives International Gross Margin % Chart
NAII vs CTGL, COOT, FAMI: Gross Margin % Comparison
For the Packaged Foods subindustry, Natural Alternatives International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Natural Alternatives International Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Natural Alternatives International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Natural Alternatives International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Natural Alternatives International (NAII) has a Gross Margin % of 1.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Natural Alternatives International and its competitors. This is 94% below median its historical median of 17.05. Over the past decade, Natural Alternatives International's Gross Margin % has ranged from 6.03 to 22.12. According to the industry distribution chart, Natural Alternatives International ranks #1719 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 90.4%.
Is Natural Alternatives International's Gross Margin % too high?
Natural Alternatives International's current Gross Margin % of 1.08% is 94% below median its 10-year median of 17.05. Over the past 10 years, this metric has ranged from a low of 6.03 to a high of 22.12. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Natural Alternatives International's value of 1.08% is 95.9% below this industry median. Based on the distribution chart, Natural Alternatives International ranks #1719 out of 1902 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Natural Alternatives International has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Natural Alternatives International's Gross Margin % compare to CTGL and COOT?
According to the Consumer Packaged Goods industry distribution chart, Natural Alternatives International ranks #1719 out of 1902 companies for Gross Margin %. This places Natural Alternatives International in the lower half of its industry. The industry median Gross Margin % is 26.37. Natural Alternatives International's value of 1.08% is 95.9% below this benchmark. Historically, Natural Alternatives International's own Gross Margin % has ranged from 6.03 to 22.12 over the past decade. While the company's 10-year median is 17.05 vs. the industry median of 26.37, Natural Alternatives International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natural Alternatives International's current Gross Margin % of 1.08% is 95.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Natural Alternatives International and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Alternatives International's current Gross Margin % is 1.08%, which is 94% below median its own 10-year median of 17.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Alternatives International stock overvalued right now?
Based on GuruFocus' analysis, Natural Alternatives International (NAII) is currently considered Possible Value Trap. The stock's GF Value™ is $5.31, compared to a current price of $2.45 — trading 53.9% below its estimated fair value. The current Gross Margin % is 1.08%, which is 94% below median its 10-year median of 17.05 and 95.9% below the Consumer Packaged Goods industry median of 26.37. Natural Alternatives International's overall GF Score™ is 49/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Natural Alternatives International (NAII), the current Gross Margin % is 1.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Natural Alternatives International (NAII) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Alternatives International stock appears to be undervalued.
The current stock price of $2.45 is trading 53.9% below its estimated GF Value™ of $5.31.
GuruFocus considers Natural Alternatives International to be Possible Value Trap.
Key valuation signals for NAII:
Gross Margin %: 1.08% (94% below median its 10-year median of 17.05)
GF Value™: $5.31 vs. price of $2.45 (53.9% below fair value)
Industry Position: 95.9% below the Consumer Packaged Goods median (#1719 of 1902)
No single metric tells the full story. See the NAII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Alternatives International Business Description
Natural Alternatives International Inc is engaged in formulating, manufacturing, and marketing nutritional supplements. It offers vitamins, minerals, herbs, and other supplements, as well as other healthcare products, to customers within the United States and internationally. Its business activity is operated through Private-Label Contract Manufacturing and Patent & Trademark Licensing segments. The company derives the majority of revenue from Private-Label Contract Manufacturing, which is engaged in providing manufacturing services to companies that market and distribute nutritional supplements and other healthcare products, whereas the Patent and Trademark Licensing segment includes royalty income from its license and supply agreements associated with the sale.
49GF Score
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