Is Natural Grocers by Vitamin Cottage, Inc. (NGVC) Halal?

NYSE Consumer Defensive United States $598M
✗ NOT HALAL
Confidence: 90/100
Natural Grocers by Vitamin Cottage, Inc. (NGVC) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 55.5% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Natural Grocers by Vitamin Cottage, Inc. operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 55.5%
/ 30%
2.9%
/ 30%
2.0%
/ 30%
0.08%
/ 5%
✗ NOT HALAL
DJIM 55.5%
/ 33%
2.9%
/ 33%
2.0%
/ 33%
0.08%
/ 5%
✗ NOT HALAL
MSCI 49.5%
/ 33%
2.6%
/ 33%
1.8%
/ 33%
0.08%
/ 5%
✗ NOT HALAL
S&P 55.5%
/ 33%
2.9%
/ 33%
2.0%
/ 33%
0.08%
/ 5%
✗ NOT HALAL
FTSE 49.5%
/ 33%
2.6%
/ 33%
1.8%
/ 50%
0.08%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
12.6
Forward: 12.1
EPS
$2.06
Dividend Yield
231.0%
Payout: 24.8%
P/B Ratio
2.7
EV/EBITDA
9.3
EV: $900M
Revenue
$1.3B
Growth: 1.6%
Beta
1.3
High volatility
Current Ratio
1.1

Profitability

Gross Margin 33.6%
Operating Margin 4.4%
Net Margin 3.6%
Return on Equity (ROE) 23.8%
Return on Assets (ROA) 6.0%

Cash Flow & Balance Sheet

Operating Cash Flow$55M
Free Cash Flow$24M
Total Debt$332M
Debt-to-Equity147.7
Current Ratio1.1
Total Assets$671M

Price & Trading

Last Close$25.65
50-Day MA$26.01
200-Day MA$32.86
Avg Volume197K
Beta1.3
52-Week Range
$23.47
$61.22

About Natural Grocers by Vitamin Cottage, Inc. (NGVC)

CEO
Mr. Kemper Isely
Employees
3,455
Sector
Consumer Defensive
Industry
Grocery Stores
Country
United States
Exchange
NYSE
Market Cap
$598M
Currency
USD

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company's stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers, Vitamin Cottage, Health Hotline, Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. The company was formerly known as Vitamin Cottage Natural Food Markets, Inc. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.

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Frequently Asked Questions

Is Natural Grocers by Vitamin Cottage, Inc. (NGVC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Natural Grocers by Vitamin Cottage, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Natural Grocers by Vitamin Cottage, Inc.'s debt ratio?

Natural Grocers by Vitamin Cottage, Inc.'s debt ratio is 55.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 49.5%.

What are Natural Grocers by Vitamin Cottage, Inc.'s key financial metrics?

Natural Grocers by Vitamin Cottage, Inc. has a market capitalization of $598M, trailing P/E ratio of 12.6, and revenue of $1.3B. The company maintains a gross margin of 33.6% and a net margin of 3.6%. Return on equity stands at 23.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.