NL INDUSTRIES (NL)

US6291564077 - Common Stock

7.33  +0.07 (+0.96%)

After market: 7.33 0 (0%)

Fundamental Rating

5

Overall NL gets a fundamental rating of 5 out of 10. We evaluated NL against 84 industry peers in the Commercial Services & Supplies industry. NL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NL has a valuation in line with the averages, but on the other hand it scores bad on growth.



4

1. Profitability

1.1 Basic Checks

In the past year NL has reported negative net income.
In the past year NL had a positive cash flow from operations.
Of the past 5 years NL 4 years were profitable.
Each year in the past 5 years NL had a positive operating cash flow.

1.2 Ratios

NL has a Return On Assets (-0.40%) which is comparable to the rest of the industry.
NL has a Return On Equity (-0.63%) which is comparable to the rest of the industry.
NL has a Return On Invested Capital of 2.77%. This is in the lower half of the industry: NL underperforms 61.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NL is significantly below the industry average of 9.30%.
The 3 year average ROIC (2.27%) for NL is below the current ROIC(2.77%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.4%
ROE -0.63%
ROIC 2.77%
ROA(3y)4.58%
ROA(5y)4.21%
ROE(3y)7.45%
ROE(5y)7.11%
ROIC(3y)2.27%
ROIC(5y)2%

1.3 Margins

NL's Operating Margin of 11.86% is fine compared to the rest of the industry. NL outperforms 79.52% of its industry peers.
In the last couple of years the Operating Margin of NL has grown nicely.
Looking at the Gross Margin, with a value of 30.50%, NL is in line with its industry, outperforming 51.81% of the companies in the same industry.
NL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.86%
PM (TTM) N/A
GM 30.5%
OM growth 3Y46.72%
OM growth 5Y9.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y-1.19%

7

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 more shares outstanding
NL has a worse debt/assets ratio than last year.

2.2 Solvency

NL has an Altman-Z score of 2.51. This is not the best score and indicates that NL is in the grey zone with still only limited risk for bankruptcy at the moment.
NL has a Altman-Z score of 2.51. This is in the better half of the industry: NL outperforms 60.24% of its industry peers.
NL has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
NL's Debt to FCF ratio of 0.01 is amongst the best of the industry. NL outperforms 90.36% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that NL is not too dependend on debt financing.
The Debt to Equity ratio of NL (0.00) is better than 85.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Altman-Z 2.51
ROIC/WACC0.31
WACC8.84%

2.3 Liquidity

A Current Ratio of 7.17 indicates that NL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.17, NL belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
A Quick Ratio of 6.16 indicates that NL has no problem at all paying its short term obligations.
NL's Quick ratio of 6.16 is amongst the best of the industry. NL outperforms 95.18% of its industry peers.
Industry RankSector Rank
Current Ratio 7.17
Quick Ratio 6.16

3

3. Growth

3.1 Past

The earnings per share for NL have decreased strongly by -106.38% in the last year.
The Revenue has decreased by -3.20% in the past year.
The Revenue has been growing slightly by 6.41% on average over the past years.
EPS 1Y (TTM)-106.38%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q223.08%
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y12.1%
Revenue growth 5Y6.41%
Revenue growth Q2Q7.91%

3.2 Future

NL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 219.93% yearly.
NL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y710.78%
EPS Next 2Y219.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.6%
Revenue Next 2Y2.56%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NL. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of NL.
87.95% of the companies in the same industry are more expensive than NL, based on the Price/Forward Earnings ratio.
NL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE N/A
Fwd PE 11.42

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NL is valued cheaper than 89.16% of the companies in the same industry.
83.13% of the companies in the same industry are more expensive than NL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.98
EV/EBITDA 6.09

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.
A more expensive valuation may be justified as NL's earnings are expected to grow with 219.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y219.93%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

NL has a Yearly Dividend Yield of 4.49%, which is a nice return.
Compared to an average industry Dividend Yield of 2.29, NL pays a better dividend. On top of this NL pays more dividend than 93.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NL pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.49%

5.2 History

The dividend of NL decreases each year by -10.91%.
NL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-10.91%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

The earnings of NL are negative and hence is the payout ratio. NL will probably not be able to sustain this dividend level.
DP-590.58%
EPS Next 2Y219.93%
EPS Next 3YN/A

NL INDUSTRIES

NYSE:NL (3/28/2024, 8:04:01 PM)

After market: 7.33 0 (0%)

7.33

+0.07 (+0.96%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap357.92M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.49%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 11.42
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.4%
ROE -0.63%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.86%
PM (TTM) N/A
GM 30.5%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 7.17
Quick Ratio 6.16
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-106.38%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y710.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y12.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y