Natural Grocers by Vitamin Cottage Inc. (NGVC): Buy a unique high growth (12% hist EPS compounder) organic only grocer at less 15 times NTM P/E
Current Price: ~$26 | 24-month Target Price: ~$47 Dividends ~$1.3, TSR: 85% | NGVC Join the mailing list for future blogs: Click here Model: Available to download here https://docs.google.com/spreadsheets/d/1V5TL1SCiVgI_Yp5FLK7YaRm0RC1kiHnb/edit?usp=sharing&ouid=100501050702536154043&rtpof=true&sd=true Competition isn’t a 0-sum alpha battle, its adding value where existing players don’t. NGVC is a great business model with strong moats, supporting a long runway of unit and same store sales with plenty of operational leverage yet to realise. Why buy an under $600m market cap grocer?! Michael Potter’s Principles on competition aptly summarises NGVC’s (Natural Grocers by Vitamin Cottage Inc) strategy. They aren’t here to challenge Kroger’s, Walmart, etc. Instead, they are here to serve less price sensitive, and instead, more, value-seeking consumers. They serve organic groceries at relatively competitive prices with relatively superior service, by on average relative