NGVC - Natural Grocers Hit By Transitional Turbulence

• Natural Grocers shares were hit hard two quarters ago as comps suddenly reversed, but while customer traffic and ticket sizes remain turbulent, the two-year comps are solidly positive.
• Gross margins are holding up despite inflationary pressures, but the company is seeing supply chain pressures for equipment and pandemic-related issues are constraining new store openings.
• Self-directed initiatives like private label grocery introductions, the loyalty program, and a new private label supplement line can all contribute to better long-term sales and margins.
• High-single-digit revenue and gradual improvements in FCF margins toward 2% can drive a mid-teens fair value.

For further details see: