Investors in Natural Grocers by Vitamin Cottage (NYSE:NGVC) have unfortunately lost 17% over the last year

While not a mind-blowing move, it is good to see that the Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) share price has gained 20% in the last three months. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 19% in the last year, well below the market return.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

View our latest analysis for Natural Grocers by Vitamin Cottage

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the unfortunate twelve months during which the Natural Grocers by Vitamin Cottage share price fell, it actually saw its earnings per share (EPS) improve by 2.4%. It could be that the share price was previously over-hyped.

It seems quite likely that the market was expecting higher growth from the stock. But other metrics might shed some light on why the share price is down.

Revenue was fairly steady year on year, which isn't usually such a bad thing. But the share price might be lower because the market expected a meaningful improvement, and got none.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Natural Grocers by Vitamin Cottage's financial health with this free report on its balance sheet.

A Different Perspective

Investors in Natural Grocers by Vitamin Cottage had a tough year, with a total loss of 17% (including dividends), against a market gain of about 5.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Natural Grocers by Vitamin Cottage is showing 1 warning sign in our investment analysis , you should know about...

We will like Natural Grocers by Vitamin Cottage better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.