NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis
NASDAQ:NTIC - Nasdaq - US6658091094 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NTIC. NTIC was compared to 85 industry peers in the Chemicals industry. NTIC has an average financial health and profitability rating. NTIC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
NTIC had positive earnings in the past year.
In the past year NTIC had a positive cash flow from operations.
Of the past 5 years NTIC 4 years were profitable.
NTIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTIC has a Return On Assets of 4.06%. This is in the better half of the industry: NTIC outperforms 72.94% of its industry peers.
NTIC has a Return On Equity of 5.46%. This is comparable to the rest of the industry: NTIC outperforms 58.82% of its industry peers.
NTIC's Return On Invested Capital of 1.30% is on the low side compared to the rest of the industry. NTIC is outperformed by 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.46% | ||
| ROIC | 1.3% |
ROA(3y)5.43%
ROA(5y)4.54%
ROE(3y)7.31%
ROE(5y)5.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NTIC has a Profit Margin of 4.51%. This is in the better half of the industry: NTIC outperforms 62.35% of its industry peers.
NTIC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.62%, NTIC is doing worse than 75.29% of the companies in the same industry.
In the last couple of years the Operating Margin of NTIC has grown nicely.
Looking at the Gross Margin, with a value of 39.16%, NTIC belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
NTIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| PM (TTM) | 4.51% | ||
| GM | 39.16% |
OM growth 3Y41.75%
OM growth 5YN/A
PM growth 3Y-16.99%
PM growth 5Y-7.41%
GM growth 3Y4.66%
GM growth 5Y4.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTIC is destroying value.
NTIC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NTIC has been increased compared to 5 years ago.
Compared to 1 year ago, NTIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.76 indicates that NTIC is not in any danger for bankruptcy at the moment.
NTIC has a better Altman-Z score (3.76) than 84.71% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that NTIC is not too dependend on debt financing.
NTIC has a Debt to Equity ratio of 0.12. This is amongst the best in the industry. NTIC outperforms 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.76 |
ROIC/WACC0.14
WACC8.94%
2.3 Liquidity
A Current Ratio of 2.18 indicates that NTIC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.18, NTIC is doing good in the industry, outperforming 61.18% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that NTIC should not have too much problems paying its short term obligations.
NTIC has a Quick ratio of 1.35. This is comparable to the rest of the industry: NTIC outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
NTIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.08%.
The Earnings Per Share has been growing slightly by 0.00% on average over the past years.
The Revenue has been growing slightly by 2.11% in the past year.
Measured over the past years, NTIC shows a quite strong growth in Revenue. The Revenue has been growing by 8.82% on average per year.
EPS 1Y (TTM)-27.08%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-116.67%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%-8.5%
3.2 Future
Based on estimates for the next years, NTIC will show a very negative growth in Earnings Per Share. The EPS will decrease by -39.75% on average per year.
NTIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y-65.42%
EPS Next 2Y-39.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y2.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
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
NTIC is valuated rather expensively with a Price/Earnings ratio of 20.91.
NTIC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, NTIC is valued at the same level.
A Price/Forward Earnings ratio of 34.17 indicates a quite expensive valuation of NTIC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTIC indicates a slightly more expensive valuation: NTIC is more expensive than 70.59% of the companies listed in the same industry.
NTIC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 34.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTIC is valued a bit more expensive than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.05 |
4.3 Compensation for Growth
NTIC's earnings are expected to decrease with -39.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5751.85
EPS Next 2Y-39.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, NTIC is not a good candidate for dividend investing.
The stock price of NTIC dropped by -34.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.70, NTIC is paying slightly less dividend.
With a Dividend Yield of 0.54, NTIC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of NTIC has a limited annual growth rate of 3.12%.
NTIC has been paying a dividend for at least 10 years, so it has a reliable track record.
NTIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.12%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
NTIC pays out 69.55% of its income as dividend. This is not a sustainable payout ratio.
NTIC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP69.55%
EPS Next 2Y-39.75%
EPS Next 3YN/A
7.32
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners42.29%
Inst Owner Change-4.16%
Ins Owners4.73%
Ins Owner Change0.37%
Market Cap69.32M
Analysts82.86
Price Target13.26 (81.15%)
Short Float %2.32%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.28
Dividend Growth(5Y)3.12%
DP69.55%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-95.91%
Min EPS beat(2)-149.02%
Max EPS beat(2)-42.81%
EPS beat(4)1
Avg EPS beat(4)-60.92%
Min EPS beat(4)-149.02%
Max EPS beat(4)3.2%
EPS beat(8)2
Avg EPS beat(8)-47.67%
EPS beat(12)2
Avg EPS beat(12)-44.55%
EPS beat(16)3
Avg EPS beat(16)-36.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)-0.38%
Revenue beat(4)1
Avg Revenue beat(4)-4.48%
Min Revenue beat(4)-11.82%
Max Revenue beat(4)1.74%
Revenue beat(8)1
Avg Revenue beat(8)-4.08%
Revenue beat(12)3
Avg Revenue beat(12)-3.74%
Revenue beat(16)5
Avg Revenue beat(16)-2.66%
PT rev (1m)-35%
PT rev (3m)-35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-77.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.78%
Revenue NY rev (1m)-5.65%
Revenue NY rev (3m)-5.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 34.17 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | 20.16 | ||
| P/B | 0.99 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 21.05 |
EPS(TTM)0.35
EY4.78%
EPS(NY)0.21
Fwd EY2.93%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.36
OCFY4.96%
SpS8.92
BVpS7.36
TBVpS5.94
PEG (NY)N/A
PEG (5Y)5751.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.46% | ||
| ROCE | 1.81% | ||
| ROIC | 1.3% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.66% | ||
| OM | 1.62% | ||
| PM (TTM) | 4.51% | ||
| GM | 39.16% | ||
| FCFM | N/A |
ROA(3y)5.43%
ROA(5y)4.54%
ROE(3y)7.31%
ROE(5y)5.92%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y53.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y46.75%
ROICexc growth 5YN/A
OM growth 3Y41.75%
OM growth 5YN/A
PM growth 3Y-16.99%
PM growth 5Y-7.41%
GM growth 3Y4.66%
GM growth 5Y4.49%
F-Score4
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 267.84% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 112.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.76 |
F-Score4
WACC8.94%
ROIC/WACC0.14
Cap/Depr(3y)169.8%
Cap/Depr(5y)218.64%
Cap/Sales(3y)3.51%
Cap/Sales(5y)4.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.08%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-116.67%
EPS Next Y-65.42%
EPS Next 2Y-39.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.11%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%-8.5%
Revenue Next Year1.07%
Revenue Next 2Y2.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.57%
EBIT growth 3Y62.47%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.07%
FCF growth 3YN/A
FCF growth 5Y-10.98%
OCF growth 1Y179.59%
OCF growth 3Y26.74%
OCF growth 5Y1.43%