NL INDUSTRIES (NL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NL - US6291564077 - Common Stock
5.57 USD
+0.13 (+2.39%)
NL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. NL has an average financial health and profitability rating. NL has a correct valuation and a medium growth rate.
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.
NL had positive earnings in 4 of the past 5 years.
NL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NL (1.94%) is comparable to the rest of the industry.
NL has a Return On Equity of 2.58%. This is comparable to the rest of the industry: NL outperforms 51.22% of its industry peers.
NL has a Return On Invested Capital (4.10%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NL is significantly below the industry average of 10.25%.
The 3 year average ROIC (2.83%) for NL is below the current ROIC(4.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 2.58% | ||
| ROIC | 4.1% |
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
NL's Profit Margin of 6.10% is fine compared to the rest of the industry. NL outperforms 74.39% of its industry peers.
In the last couple of years the Profit Margin of NL has grown nicely.
NL has a Operating Margin of 14.43%. This is amongst the best in the industry. NL outperforms 86.59% of its industry peers.
NL's Operating Margin has been stable in the last couple of years.
NL has a Gross Margin (29.65%) which is in line with its industry peers.
NL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 6.1% | ||
| GM | 29.65% |
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%
2. Health
2.1 Basic Checks
NL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NL has about the same amount of shares outstanding.
The debt/assets ratio for NL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.88 indicates that NL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.88, NL is in line with its industry, outperforming 59.76% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that NL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, NL belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.88 |
ROIC/WACC0.47
WACC8.78%
2.3 Liquidity
A Current Ratio of 4.96 indicates that NL has no problem at all paying its short term obligations.
The Current ratio of NL (4.96) is better than 90.24% of its industry peers.
NL has a Quick Ratio of 4.08. This indicates that NL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NL (4.08) is better than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.96 | ||
| Quick Ratio | 4.08 |
3. Growth
3.1 Past
The earnings per share for NL have decreased strongly by -83.35% in the last year.
Measured over the past years, NL shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.03% on average per year.
NL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
NL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.28% yearly.
EPS 1Y (TTM)-83.35%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-121.85%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%18.81%
3.2 Future
The Earnings Per Share is expected to grow by 11.50% on average over the next years. This is quite good.
Based on estimates for the next years, NL will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 16.88, which indicates a correct valuation of NL.
Based on the Price/Earnings ratio, NL is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
NL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
NL is valuated cheaply with a Price/Forward Earnings ratio of 5.88.
Based on the Price/Forward Earnings ratio, NL is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.69. NL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
NL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NL is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)0.8
EPS Next 2Y11.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.42%, NL is a good candidate for dividend investing.
NL's Dividend Yield is rather good when compared to the industry average which is at 2.46. NL pays more dividend than 98.78% of the companies in the same industry.
NL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
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 282.22% of its income as dividend. This is not a sustainable payout ratio.
DP282.22%
EPS Next 2Y11.5%
EPS Next 3YN/A
NYSE:NL (12/8/2025, 1:48:35 PM)
5.57
+0.13 (+2.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners12.61%
Inst Owner Change-4.87%
Ins Owners0.34%
Ins Owner Change0%
Market Cap272.15M
Revenue(TTM)159.00M
Net Income(TTM)9.70M
Analysts37.78
Price Target6.12 (9.87%)
Short Float %1.45%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend0.75
Dividend Growth(5Y)N/A
DP282.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-131.21%
Min EPS beat(2)-167.54%
Max EPS beat(2)-94.89%
EPS beat(4)1
Avg EPS beat(4)-60.1%
Min EPS beat(4)-167.54%
Max EPS beat(4)55.71%
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 | 16.88 | ||
| Fwd PE | 5.88 | ||
| P/S | 1.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.73 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.33
EY5.92%
EPS(NY)0.95
Fwd EY17.01%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)-0.48
OCFYN/A
SpS3.25
BVpS7.68
TBVpS7.13
PEG (NY)1.04
PEG (5Y)0.8
Graham Number7.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 2.58% | ||
| ROCE | 4.93% | ||
| ROIC | 4.1% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 5.68% | ||
| OM | 14.43% | ||
| PM (TTM) | 6.1% | ||
| GM | 29.65% | ||
| 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%
ROICexgc growth 3Y24.57%
ROICexgc 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 91.71% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 43.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.96 | ||
| Quick Ratio | 4.08 | ||
| Altman-Z | 2.88 |
F-Score3
WACC8.78%
ROIC/WACC0.47
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)-83.35%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-121.85%
EPS Next Y16.22%
EPS Next 2Y11.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%18.81%
Revenue Next Year2.5%
Revenue Next 2Y2.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y81.88%
EBIT growth 3Y13.6%
EBIT growth 5Y2.35%
EBIT Next Year62.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-193.87%
FCF growth 3Y21.38%
FCF growth 5Y-0.05%
OCF growth 1Y-178.36%
OCF growth 3Y13.26%
OCF growth 5Y-1.37%
NL INDUSTRIES / NL FAQ
What is the fundamental rating for NL stock?
ChartMill assigns a fundamental rating of 5 / 10 to NL.
Can you provide the valuation status for NL INDUSTRIES?
ChartMill assigns a valuation rating of 5 / 10 to NL INDUSTRIES (NL). This can be considered as Fairly Valued.
How profitable is NL INDUSTRIES (NL) stock?
NL INDUSTRIES (NL) has a profitability rating of 5 / 10.
What is the financial health of NL INDUSTRIES (NL) stock?
The financial health rating of NL INDUSTRIES (NL) is 6 / 10.
How sustainable is the dividend of NL INDUSTRIES (NL) stock?
The dividend rating of NL INDUSTRIES (NL) is 5 / 10 and the dividend payout ratio is 282.22%.