Natural Grocers by Vitamin CottageNGVC +1.62%84 Operating Margin % is 5.56% as of Mar. 2026, which is 95% above its 10-year median of 2.85. GuruFocus rates NGVC with a GF Score™ of 84/100 and a GF Value™ of $27.27 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 310 Retail - Defensive companies, Natural Grocers by Vitamin Cottage ranks better than 67.1% on this metric.
Natural Grocers by Vitamin Cottage (NYSE:NGVC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Natural Grocers by Vitamin Cottage Operating Margin % Related Terms
Natural Grocers by Vitamin Cottage Operating 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 Grocers by Vitamin Cottage Operating Margin % Chart
NGVC vs VLGEA, YSWY, DNUT: Operating Margin % Comparison
For the Grocery Stores subindustry, Natural Grocers by Vitamin Cottage's Operating Margin %, along with its competitors' market caps and Operating 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 Grocers by Vitamin Cottage Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Natural Grocers by Vitamin Cottage's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Natural Grocers by Vitamin Cottage's Operating Margin % falls into.
Natural Grocers by Vitamin Cottage Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 Grocers by Vitamin Cottage (NGVC) has a Operating Margin % of 5.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Natural Grocers by Vitamin Cottage and its competitors. This is 95% above median its historical median of 2.85. Over the past decade, Natural Grocers by Vitamin Cottage's Operating Margin % has ranged from 2.01 to 4.86. According to the industry distribution chart, Natural Grocers by Vitamin Cottage ranks #102 out of 310 companies in the Retail - Defensive industry, placing it in the top 32.9%.
Is Natural Grocers by Vitamin Cottage's Operating Margin % too high?
Natural Grocers by Vitamin Cottage's current Operating Margin % of 5.56% is 95% above median its 10-year median of 2.85. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 4.86. The Retail - Defensive industry median Operating Margin % is 3.28. Natural Grocers by Vitamin Cottage's value of 5.56% is 69.8% above this industry median. Based on the distribution chart, Natural Grocers by Vitamin Cottage ranks #102 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Natural Grocers by Vitamin Cottage has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Grocers by Vitamin Cottage's Operating Margin % compare to VLGEA and YSWY?
According to the Retail - Defensive industry distribution chart, Natural Grocers by Vitamin Cottage ranks #102 out of 310 companies for Operating Margin %. This puts Natural Grocers by Vitamin Cottage in the upper half of its industry. The industry median Operating Margin % is 3.28. Natural Grocers by Vitamin Cottage's value of 5.56% is 69.8% above this benchmark. Historically, Natural Grocers by Vitamin Cottage's own Operating Margin % has ranged from 2.01 to 4.86 over the past decade. While the company's 10-year median is 2.85 vs. the industry median of 3.28, Natural Grocers by Vitamin Cottage has consistently been above 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 Operating Margin % for a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natural Grocers by Vitamin Cottage's current Operating Margin % of 5.56% is 69.8% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Natural Grocers by Vitamin Cottage and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Grocers by Vitamin Cottage's current Operating Margin % is 5.56%, which is 95% above median its own 10-year median of 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Grocers by Vitamin Cottage stock overvalued right now?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage (NGVC) is currently considered Modestly Overvalued. The stock's GF Value™ is $27.27, compared to a current price of $32.69 — trading 19.9% above its estimated fair value. The current Operating Margin % is 5.56%, which is 95% above median its 10-year median of 2.85 and 69.8% above the Retail - Defensive industry median of 3.28. Natural Grocers by Vitamin Cottage's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Natural Grocers by Vitamin Cottage (NGVC), the current Operating Margin % is 5.56% 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 Grocers by Vitamin Cottage (NGVC) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage stock appears to be overvalued.
The current stock price of $32.69 is trading 19.9% above its estimated GF Value™ of $27.27.
GuruFocus considers Natural Grocers by Vitamin Cottage to be Modestly Overvalued.
Key valuation signals for NGVC:
Operating Margin %: 5.56% (95% above median its 10-year median of 2.85)
GF Value™: $27.27 vs. price of $32.69 (19.9% above fair value)
Industry Position: 69.8% above the Retail - Defensive median (#102 of 310)
No single metric tells the full story. See the NGVC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Grocers by Vitamin Cottage Business Description
Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories: natural and organic food, dietary supplements, natural body care, household, pet care products, books, and handouts. The Company has a single reporting segment, natural and organic retail stores, through which business is conducted. The company generates the majority of its revenue from grocery products and dietary supplements, and the rest from other products.
84GF Score
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