NL INDUSTRIES (NL) Stock Fundamental Analysis
NYSE:NL - New York Stock Exchange, Inc. - US6291564077 - Common Stock - Currency: USD
NL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. NL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NL may be a bit undervalued, certainly considering the very reasonable score on growth This makes NL very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NL was profitable.
In the past year NL has reported a negative cash flow from operations.
NL had positive earnings in 4 of the past 5 years.
In the past 5 years NL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NL (11.74%) is better than 84.34% of its industry peers.
NL has a better Return On Equity (15.35%) than 74.70% of its industry peers.
With a decent Return On Invested Capital value of 10.51%, NL is doing good in the industry, outperforming 77.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NL is significantly below the industry average of 10.89%.
The 3 year average ROIC (5.14%) for NL is below the current ROIC(10.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 15.35% | ||
| ROIC | 10.51% |
ROA(3y)5.59%
ROA(5y)5.61%
ROE(3y)8.39%
ROE(5y)8.8%
ROIC(3y)5.14%
ROIC(5y)3.61%
1.3 Margins
NL has a better Profit Margin (41.19%) than 98.80% of its industry peers.
In the last couple of years the Profit Margin of NL has grown nicely.
NL has a Operating Margin of 41.70%. This is amongst the best in the industry. NL outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of NL has grown nicely.
With a Gross Margin value of 29.59%, NL perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
In the last couple of years the Gross Margin of NL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.7% | ||
| PM (TTM) | 41.19% | ||
| GM | 29.59% |
OM growth 3Y63.92%
OM growth 5Y24.38%
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 just above the Cost of Capital (WACC), which means it is creating some 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.
NL has a better debt/assets ratio than last year.
2.2 Solvency
NL has an Altman-Z score of 3.74. This indicates that NL is financially healthy and has little risk of bankruptcy at the moment.
NL has a better Altman-Z score (3.74) than 73.49% of its industry peers.
NL has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
NL has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. NL outperforms 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.74 |
ROIC/WACC1.16
WACC9.07%
2.3 Liquidity
NL has a Current Ratio of 5.81. This indicates that NL is financially healthy and has no problem in meeting its short term obligations.
NL has a better Current ratio (5.81) than 92.77% of its industry peers.
NL has a Quick Ratio of 4.86. This indicates that NL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.86, NL belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.81 | ||
| Quick Ratio | 4.86 |
3. Growth
3.1 Past
NL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 431.01%, which is quite impressive.
The Earnings Per Share has been growing by 21.03% on average over the past years. This is a very strong growth
The Revenue has decreased by -6.26% in the past year.
The Revenue has been growing slightly by 3.28% on average over the past years.
EPS 1Y (TTM)431.01%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-6.67%
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%6.13%
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
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 6.30, the valuation of NL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NL indicates a rather cheap valuation: NL is cheaper than 92.77% of the companies listed in the same industry.
NL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.68.
NL is valuated reasonably with a Price/Forward Earnings ratio of 8.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NL indicates a rather cheap valuation: NL is cheaper than 92.77% of the companies listed in the same industry.
NL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NL is valued cheaper than 93.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
NL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NL may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)0.3
EPS Next 2Y11.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.48%, 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 92.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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 60.80% of its income as dividend. This is not a sustainable payout ratio.
DP60.8%
EPS Next 2Y11.5%
EPS Next 3YN/A
7.87
-0.17 (-2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners12.53%
Inst Owner Change2.85%
Ins Owners0.27%
Ins Owner Change1.64%
Market Cap384.45M
Analysts37.78
Price Target6.12 (-22.24%)
Short Float %1.15%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Yearly Dividend0.75
Dividend Growth(5Y)N/A
DP60.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11%
Min EPS beat(2)-33.7%
Max EPS beat(2)55.71%
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 | 6.3 | ||
| Fwd PE | 8.31 | ||
| P/S | 2.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.97 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 4.2 |
EPS(TTM)1.25
EY15.88%
EPS(NY)0.95
Fwd EY12.04%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)-0.59
OCFYN/A
SpS3.03
BVpS8.14
TBVpS7.58
PEG (NY)0.39
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 15.35% | ||
| ROCE | 12.64% | ||
| ROIC | 10.51% | ||
| ROICexc | 13.56% | ||
| ROICexgc | 14.6% | ||
| OM | 41.7% | ||
| PM (TTM) | 41.19% | ||
| GM | 29.59% | ||
| FCFM | N/A |
ROA(3y)5.59%
ROA(5y)5.61%
ROE(3y)8.39%
ROE(5y)8.8%
ROIC(3y)5.14%
ROIC(5y)3.61%
ROICexc(3y)7.52%
ROICexc(5y)5.22%
ROICexgc(3y)8.16%
ROICexgc(5y)5.65%
ROCE(3y)6.19%
ROCE(5y)4.34%
ROICexcg growth 3Y81.9%
ROICexcg growth 5Y34.3%
ROICexc growth 3Y80.67%
ROICexc growth 5Y33.85%
OM growth 3Y63.92%
OM growth 5Y24.38%
PM growth 3Y8.2%
PM growth 5Y17.27%
GM growth 3Y-2.23%
GM growth 5Y-2.03%
F-Score4
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 52.53% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 115.54 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.81 | ||
| Quick Ratio | 4.86 | ||
| Altman-Z | 3.74 |
F-Score4
WACC9.07%
ROIC/WACC1.16
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)431.01%
EPS 3Y9.44%
EPS 5Y21.03%
EPS Q2Q%-6.67%
EPS Next Y16.22%
EPS Next 2Y11.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y1.2%
Revenue growth 5Y3.28%
Sales Q2Q%6.13%
Revenue Next Year2.5%
Revenue Next 2Y2.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y291.59%
EBIT growth 3Y65.89%
EBIT growth 5Y28.46%
EBIT Next Year62.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-205.86%
FCF growth 3Y21.38%
FCF growth 5Y-0.05%
OCF growth 1Y-191.81%
OCF growth 3Y13.26%
OCF growth 5Y-1.37%