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NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis

NASDAQ:NTIC - Nasdaq - US6658091094 - Common Stock - Currency: USD

7.48  -0.22 (-2.86%)

Fundamental Rating

4

NTIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and the financial health of NTIC get a neutral evaluation. Nothing too spectacular is happening here. NTIC does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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5

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.
NTIC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NTIC had a positive operating cash flow.
NTIC Yearly Net Income VS EBIT VS OCF VS FCFNTIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M -2M 4M 6M

1.2 Ratios

With a decent Return On Assets value of 2.97%, NTIC is doing good in the industry, outperforming 63.53% of the companies in the same industry.
NTIC has a Return On Equity (4.08%) which is comparable to the rest of the industry.
NTIC's Return On Invested Capital of 1.02% is on the low side compared to the rest of the industry. NTIC is outperformed by 74.12% of its industry peers.
Industry RankSector Rank
ROA 2.97%
ROE 4.08%
ROIC 1.02%
ROA(3y)5.43%
ROA(5y)4.54%
ROE(3y)7.31%
ROE(5y)5.92%
ROIC(3y)N/A
ROIC(5y)N/A
NTIC Yearly ROA, ROE, ROICNTIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

NTIC has a Profit Margin of 3.46%. 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.
NTIC has a Operating Margin of 1.33%. This is in the lower half of the industry: NTIC underperforms 76.47% of its industry peers.
NTIC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.21%, NTIC belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
In the last couple of years the Gross Margin of NTIC has grown nicely.
Industry RankSector Rank
OM 1.33%
PM (TTM) 3.46%
GM 39.21%
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%
NTIC Yearly Profit, Operating, Gross MarginsNTIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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5

2. Health

2.1 Basic Checks

NTIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NTIC has more shares outstanding than it did 1 year ago.
NTIC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NTIC has a worse debt to assets ratio.
NTIC Yearly Shares OutstandingNTIC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M
NTIC Yearly Total Debt VS Total AssetsNTIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 3.54 indicates that NTIC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.54, NTIC belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
NTIC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NTIC (0.14) is better than 84.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF N/A
Altman-Z 3.54
ROIC/WACC0.11
WACC9%
NTIC Yearly LT Debt VS Equity VS FCFNTIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M

2.3 Liquidity

NTIC has a Current Ratio of 2.03. This indicates that NTIC is financially healthy and has no problem in meeting its short term obligations.
NTIC's Current ratio of 2.03 is in line compared to the rest of the industry. NTIC outperforms 52.94% of its industry peers.
A Quick Ratio of 1.32 indicates that NTIC should not have too much problems paying its short term obligations.
NTIC's Quick ratio of 1.32 is in line compared to the rest of the industry. NTIC outperforms 57.65% of its industry peers.
Industry RankSector Rank
Current Ratio 2.03
Quick Ratio 1.32
NTIC Yearly Current Assets VS Current LiabilitesNTIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

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3

3. Growth

3.1 Past

The earnings per share for NTIC have decreased strongly by -38.10% in the last year.
The Earnings Per Share has been growing slightly by 0.00% on average over the past years.
The Revenue has been growing slightly by 3.46% in the past year.
The Revenue has been growing by 8.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.1%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-81.82%
Revenue 1Y (TTM)3.46%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%3.98%

3.2 Future

NTIC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -39.75% yearly.
The Revenue is expected to grow by 2.87% on average over the next years.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
NTIC Yearly Revenue VS EstimatesNTIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
NTIC Yearly EPS VS EstimatesNTIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 0.4 0.6

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.77, which means the current valuation is very expensive for NTIC.
NTIC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NTIC to the average of the S&P500 Index (26.82), we can say NTIC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 34.92, the valuation of NTIC can be described as expensive.
Based on the Price/Forward Earnings ratio, NTIC is valued a bit more expensive than 68.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, NTIC is valued at the same level.
Industry RankSector Rank
PE 28.77
Fwd PE 34.92
NTIC Price Earnings VS Forward Price EarningsNTIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

NTIC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NTIC is more expensive than 75.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.33
NTIC Per share dataNTIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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)7912.11
EPS Next 2Y-39.75%
EPS Next 3YN/A

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3

5. Dividend

5.1 Amount

NTIC has a yearly dividend return of 0.48%, which is pretty low.
NTIC's Dividend Yield is slightly below the industry average, which is at 3.64.
With a Dividend Yield of 0.48, NTIC pays less dividend than the S&P500 average, which is at 2.35.
Industry RankSector Rank
Dividend Yield 0.48%

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
NTIC Yearly Dividends per shareNTIC Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

70.51% of the earnings are spent on dividend by NTIC. 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.
DP70.51%
EPS Next 2Y-39.75%
EPS Next 3YN/A
NTIC Yearly Income VS Free CF VS DividendNTIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M -2M 4M 6M
NTIC Dividend Payout.NTIC Dividend Payout, showing the Payout Ratio.NTIC Dividend Payout.PayoutRetained Earnings

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NORTHERN TECHNOLOGIES INTL

NASDAQ:NTIC (8/1/2025, 4:30:02 PM)

7.48

-0.22 (-2.86%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)07-10 2025-07-10/bmo
Earnings (Next)11-17 2025-11-17/bmo
Inst Owners40.79%
Inst Owner Change-0.09%
Ins Owners4.75%
Ins Owner Change0.37%
Market Cap70.84M
Analysts82.86
Price Target13.26 (77.27%)
Short Float %0.36%
Short Ratio0.53
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend0.28
Dividend Growth(5Y)3.12%
DP70.51%
Div Incr Years0
Div Non Decr Years4
Ex-Date07-30 2025-07-30 (0.01)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-100%
Min EPS beat(2)-149.02%
Max EPS beat(2)-50.98%
EPS beat(4)1
Avg EPS beat(4)-59.9%
Min EPS beat(4)-149.02%
Max EPS beat(4)3.2%
EPS beat(8)2
Avg EPS beat(8)-52.51%
EPS beat(12)2
Avg EPS beat(12)-47.01%
EPS beat(16)2
Avg EPS beat(16)-43.58%
Revenue beat(2)1
Avg Revenue beat(2)-2.78%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)1.87%
Revenue beat(8)2
Avg Revenue beat(8)-3.82%
Revenue beat(12)4
Avg Revenue beat(12)-3.4%
Revenue beat(16)5
Avg Revenue beat(16)-3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-38.46%
EPS NQ rev (3m)-68%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-6.67%
Revenue NQ rev (3m)-12.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 28.77
Fwd PE 34.92
P/S 0.83
P/FCF N/A
P/OCF 33.61
P/B 0.98
P/tB 1.2
EV/EBITDA 23.33
EPS(TTM)0.26
EY3.48%
EPS(NY)0.21
Fwd EY2.86%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)0.22
OCFY2.98%
SpS9
BVpS7.64
TBVpS6.24
PEG (NY)N/A
PEG (5Y)7912.11
Profitability
Industry RankSector Rank
ROA 2.97%
ROE 4.08%
ROCE 1.45%
ROIC 1.02%
ROICexc 1.1%
ROICexgc 1.31%
OM 1.33%
PM (TTM) 3.46%
GM 39.21%
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 Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF N/A
Debt/EBITDA 3.58
Cap/Depr 247.99%
Cap/Sales 4.94%
Interest Coverage 2.21
Cash Conversion 74.34%
Profit Quality N/A
Current Ratio 2.03
Quick Ratio 1.32
Altman-Z 3.54
F-Score4
WACC9%
ROIC/WACC0.11
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)-38.1%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-81.82%
EPS Next Y-65.42%
EPS Next 2Y-39.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.46%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%3.98%
Revenue Next Year1.07%
Revenue Next 2Y2.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y569.3%
EBIT growth 3Y62.47%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-440.36%
FCF growth 3YN/A
FCF growth 5Y-10.98%
OCF growth 1Y-26.81%
OCF growth 3Y26.74%
OCF growth 5Y1.43%