John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Nutraceutical International: The Other Undervalued (And Ignored) Nutritional Supplements Manufacturer

Investment thesis

Nutraceutical International (NASDAQ:NUTR) is ignored by analysts, investors and the media despite a low valuation, high EBITDA margin and positive growth story, as Herbalife (NYSE:HLF) continues to grab the spotlight. However, there is significant appreciation potential once investors realize a rising tide in the form of lower headline risk lifts all boats.

Company overview

NUTR is an integrated manufacturer, marketer, distributor and retailer of branded nutritional supplements and natural products.

Disciplined acquisition strategy in growing, fragmented industry provides sustainable growth

Bain Capital and senior management (still in place) formed NUTR in 1993 for the purpose of consolidating the fragmented vitamin, mineral, herbal and nutritional supplements (VMS) industry. More than 35 acquisitions in the past...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details