NL INDUSTRIES (NL) Stock Fundamental Analysis
NYSE:NL - US6291564077 - Common Stock
6.72 USD
+0.17 (+2.6%)
NL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of NL get a neutral evaluation. Nothing too spectacular is happening here. NL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make NL suitable for value investing!
1. Profitability
1.1 Basic Checks
NL had positive earnings in the past year.
In the past year NL has reported a negative cash flow from operations.
Of the past 5 years NL 4 years were profitable.
In the past 5 years NL always reported a positive cash flow from operatings.
1.2 Ratios
NL's Return On Assets of 10.23% is amongst the best of the industry. NL outperforms 83.33% of its industry peers.
NL has a better Return On Equity (13.48%) than 76.19% of its industry peers.
NL has a Return On Invested Capital (3.65%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NL is significantly below the industry average of 10.78%.
The last Return On Invested Capital (3.65%) for NL is above the 3 year average (2.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.23% | ||
| ROE | 13.48% | ||
| ROIC | 3.65% |
ROA(3y)5.59%
ROA(5y)5.61%
ROE(3y)8.39%
ROE(5y)8.8%
ROIC(3y)2.83%
ROIC(5y)2.22%
1.3 Margins
The Profit Margin of NL (35.08%) is better than 97.62% of its industry peers.
NL's Profit Margin has improved in the last couple of years.
NL's Operating Margin of 14.09% is amongst the best of the industry. NL outperforms 83.33% of its industry peers.
NL's Operating Margin has been stable in the last couple of years.
NL has a Gross Margin (29.85%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.09% | ||
| PM (TTM) | 35.08% | ||
| GM | 29.85% |
OM growth 3Y12.25%
OM growth 5Y-0.9%
PM growth 3Y8.2%
PM growth 5Y17.27%
GM growth 3Y-2.23%
GM growth 5Y-2.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NL is destroying value.
The number of shares outstanding for NL remains at a similar level compared to 1 year ago.
The number of shares outstanding for NL remains at a similar level compared to 5 years ago.
The debt/assets ratio for NL has been reduced compared to a year ago.
2.2 Solvency
NL has an Altman-Z score of 3.11. This indicates that NL is financially healthy and has little risk of bankruptcy at the moment.
NL's Altman-Z score of 3.11 is in line compared to the rest of the industry. NL outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that NL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, NL belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.11 |
ROIC/WACC0.41
WACC8.9%
2.3 Liquidity
A Current Ratio of 5.41 indicates that NL has no problem at all paying its short term obligations.
NL has a Current ratio of 5.41. This is amongst the best in the industry. NL outperforms 91.67% of its industry peers.
A Quick Ratio of 4.44 indicates that NL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.44, NL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.41 | ||
| Quick Ratio | 4.44 |
3. Growth
3.1 Past
NL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 140.65%, which is quite impressive.
NL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.03% yearly.
Looking at the last year, NL shows a decrease in Revenue. The Revenue has decreased by -2.99% in the last year.
The Revenue has been growing slightly by 3.28% on average over the past years.
EPS 1Y (TTM)140.65%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-83.33%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%12.3%
3.2 Future
NL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.50% yearly.
The Revenue is expected to grow by 2.47% on average over the next years.
EPS Next Y16.22%
EPS Next 2Y11.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.5%
Revenue Next 2Y2.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.11, the valuation of NL can be described as very cheap.
95.24% of the companies in the same industry are more expensive than NL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NL to the average of the S&P500 Index (27.14), we can say NL is valued rather cheaply.
A Price/Forward Earnings ratio of 7.09 indicates a rather cheap valuation of NL.
96.43% of the companies in the same industry are more expensive than NL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, NL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 7.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NL is valued a bit cheaper than the industry average as 77.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.38
PEG (5Y)0.29
EPS Next 2Y11.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, NL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.36, NL pays a better dividend. On top of this NL pays more dividend than 97.62% of the companies listed in the same industry.
NL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
NL has paid a dividend for at least 10 years, which is a reliable track record.
NL has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NL pays out 70.21% of its income as dividend. This is not a sustainable payout ratio.
DP70.21%
EPS Next 2Y11.5%
EPS Next 3YN/A
NYSE:NL (8/27/2025, 8:07:43 PM)
6.72
+0.17 (+2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners12.5%
Inst Owner Change-2.14%
Ins Owners0.34%
Ins Owner Change1.64%
Market Cap328.34M
Analysts37.78
Price Target6.12 (-8.93%)
Short Float %1.34%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.75
Dividend Growth(5Y)N/A
DP70.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.29%
Min EPS beat(2)-94.89%
Max EPS beat(2)-33.7%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 7.09 | ||
| P/S | 2.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.83 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)1.1
EY16.37%
EPS(NY)0.95
Fwd EY14.1%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)-0.76
OCFYN/A
SpS3.13
BVpS8.14
TBVpS7.58
PEG (NY)0.38
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.23% | ||
| ROE | 13.48% | ||
| ROCE | 4.4% | ||
| ROIC | 3.65% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 5.1% | ||
| OM | 14.09% | ||
| PM (TTM) | 35.08% | ||
| GM | 29.85% | ||
| FCFM | N/A |
ROA(3y)5.59%
ROA(5y)5.61%
ROE(3y)8.39%
ROE(5y)8.8%
ROIC(3y)2.83%
ROIC(5y)2.22%
ROICexc(3y)4.05%
ROICexc(5y)3.14%
ROICexgc(3y)4.37%
ROICexgc(5y)3.38%
ROCE(3y)3.41%
ROCE(5y)2.67%
ROICexcg growth 3Y24.57%
ROICexcg growth 5Y7%
ROICexc growth 3Y23.73%
ROICexc growth 5Y6.65%
OM growth 3Y12.25%
OM growth 5Y-0.9%
PM growth 3Y8.2%
PM growth 5Y17.27%
GM growth 3Y-2.23%
GM growth 5Y-2.03%
F-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 77.22% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 40.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.41 | ||
| Quick Ratio | 4.44 | ||
| Altman-Z | 3.11 |
F-Score3
WACC8.9%
ROIC/WACC0.41
Cap/Depr(3y)53.25%
Cap/Depr(5y)62.47%
Cap/Sales(3y)1.3%
Cap/Sales(5y)1.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.65%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-83.33%
EPS Next Y16.22%
EPS Next 2Y11.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%12.3%
Revenue Next Year2.5%
Revenue Next 2Y2.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y33.07%
EBIT growth 3Y13.6%
EBIT growth 5Y2.35%
EBIT Next Year62.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-223.47%
FCF growth 3Y21.38%
FCF growth 5Y-0.05%
OCF growth 1Y-207.87%
OCF growth 3Y13.26%
OCF growth 5Y-1.37%