NL INDUSTRIES (NL) Stock Fundamental Analysis
USA - NYSE:NL - US6291564077 - Common Stock
5.73 USD
-0.17 (-2.88%)
Overall NL gets a fundamental rating of 6 out of 10. We evaluated NL against 82 industry peers in the Commercial Services & Supplies industry. NL has an average financial health and profitability rating. NL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NL had positive earnings in the past year.
NL had a negative operating cash flow in the past year.
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
NL has a Return On Assets of 10.23%. This is amongst the best in the industry. NL outperforms 85.37% of its industry peers.
With a decent Return On Equity value of 13.48%, NL is doing good in the industry, outperforming 74.39% of the companies in the same industry.
NL has a Return On Invested Capital (3.65%) which is in line with its industry peers.
NL had an Average Return On Invested Capital over the past 3 years of 2.83%. This is significantly below the industry average of 10.51%.
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
NL has a better Profit Margin (35.08%) than 97.56% 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 85.37% of its industry peers.
In the last couple of years the Operating Margin of NL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 29.85%, NL is in line with its industry, outperforming 45.12% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NL 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.
Compared to 1 year ago, NL has an improved debt to assets ratio.
2.2 Solvency
NL has an Altman-Z score of 2.92. 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's Altman-Z score of 2.92 is fine compared to the rest of the industry. NL outperforms 60.98% 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.
The Debt to Equity ratio of NL (0.00) is better than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.92 |
ROIC/WACC0.42
WACC8.75%
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 91.46% of its industry peers.
NL has a Quick Ratio of 4.44. 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 4.44, NL belongs to the top of the industry, outperforming 90.24% 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 163.86%, which is quite impressive.
Measured over the past years, NL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.44% on average per year.
NL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
Measured over the past years, NL shows a small growth in Revenue. The Revenue has been growing by 3.65% on average per year.
EPS 1Y (TTM)163.86%
EPS 3Y19.57%
EPS 5Y-10.44%
EPS Q2Q%N/A
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.48%
Revenue growth 5Y3.65%
Sales Q2Q%18.81%
3.2 Future
Based on estimates for the next years, NL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.52% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y3%
EPS Next 2Y66.04%
EPS Next 3Y70.29%
EPS Next 5Y17.52%
Revenue Next Year-2.46%
Revenue Next 2Y5.97%
Revenue Next 3Y7.84%
Revenue Next 5Y5.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.36, the valuation of NL can be described as rather expensive.
Based on the Price/Earnings ratio, NL is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NL to the average of the S&P500 Index (26.28), we can say NL is valued slightly cheaper.
The Price/Forward Earnings ratio is 6.11, which indicates a rather cheap valuation of NL.
93.90% 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 rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 6.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NL is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NL may justify a higher PE ratio.
NL's earnings are expected to grow with 70.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.79
PEG (5Y)N/A
EPS Next 2Y66.04%
EPS Next 3Y70.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.10%, NL is a good candidate for dividend investing.
NL's Dividend Yield is rather good when compared to the industry average which is at 2.54. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
5.2 History
NL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NL decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
70.21% of the earnings are spent on dividend by NL. This is not a sustainable payout ratio.
DP70.21%
EPS Next 2Y66.04%
EPS Next 3Y70.29%
NYSE:NL (11/10/2025, 8:15:35 PM)
5.73
-0.17 (-2.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners12.69%
Inst Owner Change-4.09%
Ins Owners0.34%
Ins Owner Change0.87%
Market Cap279.97M
Revenue(TTM)124.20M
Net Income(TTM)53.58M
Analysts37.78
Price Target6.12 (6.81%)
Short Float %1.42%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
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 | 17.36 | ||
| Fwd PE | 6.11 | ||
| P/S | 1.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.7 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)0.33
EY5.76%
EPS(NY)0.94
Fwd EY16.36%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)-0.76
OCFYN/A
SpS3.13
BVpS8.14
TBVpS7.58
PEG (NY)5.79
PEG (5Y)N/A
Graham Number7.77
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%
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 Turnover0.29
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 | 2.92 |
F-Score3
WACC8.75%
ROIC/WACC0.42
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)163.86%
EPS 3Y19.57%
EPS 5Y-10.44%
EPS Q2Q%N/A
EPS Next Y3%
EPS Next 2Y66.04%
EPS Next 3Y70.29%
EPS Next 5Y17.52%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.48%
Revenue growth 5Y3.65%
Sales Q2Q%18.81%
Revenue Next Year-2.46%
Revenue Next 2Y5.97%
Revenue Next 3Y7.84%
Revenue Next 5Y5.57%
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%
NL INDUSTRIES / NL FAQ
What is the fundamental rating for NL stock?
ChartMill assigns a fundamental rating of 6 / 10 to NL.
Can you provide the valuation status for NL INDUSTRIES?
ChartMill assigns a valuation rating of 6 / 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 6 / 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 70.21%.