NORTHERN TECHNOLOGIES INTL (NTIC)
US6658091094 - Common Stock
NTIC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. NTIC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NTIC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NTIC was profitable.
In the past year NTIC had a positive cash flow from operations.
NTIC had positive earnings in 4 of the past 5 years.
NTIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTIC's Return On Assets of 4.73% is fine compared to the rest of the industry. NTIC outperforms 72.62% of its industry peers.
The Return On Equity of NTIC (6.04%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.06%, NTIC is doing worse than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 6.04% | ||
| ROIC | 1.06% |
ROA(3y)6.34%
ROA(5y)4.94%
ROE(3y)8.13%
ROE(5y)6.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NTIC has a better Profit Margin (4.99%) than 60.71% of its industry peers.
In the last couple of years the Profit Margin of NTIC has declined.
The Operating Margin of NTIC (1.28%) is worse than 69.05% of its industry peers.
NTIC's Gross Margin of 37.15% is fine compared to the rest of the industry. NTIC outperforms 78.57% of its industry peers.
NTIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.28% | ||
| PM (TTM) | 4.99% | ||
| GM | 37.15% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-22.5%
GM growth 3Y1.12%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTIC is destroying value.
NTIC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NTIC has more shares outstanding
The debt/assets ratio for NTIC is higher compared to a year ago.
2.2 Solvency
NTIC has an Altman-Z score of 7.47. This indicates that NTIC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.47, NTIC belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
The Debt to FCF ratio of NTIC is 0.66, which is an excellent value as it means it would take NTIC, only 0.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.66, NTIC belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
NTIC has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
NTIC has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. NTIC outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 7.47 |
ROIC/WACC0.12
WACC9.17%
2.3 Liquidity
A Current Ratio of 2.79 indicates that NTIC has no problem at all paying its short term obligations.
NTIC has a Current ratio of 2.79. This is in the better half of the industry: NTIC outperforms 70.24% of its industry peers.
NTIC has a Quick Ratio of 1.86. This is a normal value and indicates that NTIC is financially healthy and should not expect problems in meeting its short term obligations.
NTIC's Quick ratio of 1.86 is fine compared to the rest of the industry. NTIC outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
NTIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, NTIC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.83% on average per year.
Looking at the last year, NTIC shows a small growth in Revenue. The Revenue has grown by 6.81% in the last year.
NTIC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.22% yearly.
EPS 1Y (TTM)33.33%
EPS 3YN/A
EPS 5Y-15.83%
EPS growth Q2Q80%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y18.81%
Revenue growth 5Y9.22%
Revenue growth Q2Q14.08%
3.2 Future
The Earnings Per Share is expected to grow by 64.06% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.
EPS Next Y112.5%
EPS Next 2Y64.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.43%
Revenue Next 2Y10.9%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.08, which means the current valuation is very expensive for NTIC.
NTIC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.15, NTIC is valued a bit more expensive.
A Price/Forward Earnings ratio of 18.37 indicates a rather expensive valuation of NTIC.
NTIC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.20. NTIC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTIC indicates a slightly more expensive valuation: NTIC is more expensive than 78.57% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NTIC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.71 | ||
| EV/EBITDA | 58.12 |
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.
NTIC's earnings are expected to grow with 64.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y64.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTIC has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
NTIC's Dividend Yield is comparable with the industry average which is at 3.10.
NTIC's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of NTIC is nicely growing with an annual growth rate of 6.97%!
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)6.97%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
63.73% of the earnings are spent on dividend by NTIC. This is not a sustainable payout ratio.
NTIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.73%
EPS Next 2Y64.06%
EPS Next 3YN/A
NORTHERN TECHNOLOGIES INTL
NASDAQ:NTIC (5/17/2024, 7:16:49 PM)
17.8
+0.14 (+0.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap167.85M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)
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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)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 18.37 | ||
| 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)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 6.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.28% | ||
| PM (TTM) | 4.99% | ||
| GM | 37.15% | ||
| 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.86 | ||
| 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)33.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y112.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.81%
Revenue growth 3Y18.81%
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