NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis
USA - NASDAQ:NTIC - US6658091094 - Common Stock
7.43 USD
-0.14 (-1.78%)
7.92 USD
+0.49 (+6.59%)
Overall NTIC gets a fundamental rating of 4 out of 10. We evaluated NTIC against 82 industry peers in the Chemicals industry. NTIC has only an average score on both its financial health and profitability. NTIC does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years NTIC had a positive operating cash flow.
1.2 Ratios
NTIC's Return On Assets of 2.97% is fine compared to the rest of the industry. NTIC outperforms 65.85% of its industry peers.
The Return On Equity of NTIC (4.08%) 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 75.61% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
NTIC has a better Profit Margin (3.46%) than 62.20% of its industry peers.
In the last couple of years the Profit Margin of NTIC has declined.
NTIC has a Operating Margin of 1.33%. This is in the lower half of the industry: NTIC underperforms 78.05% of its industry peers.
NTIC's Operating Margin has improved in the last couple of years.
NTIC's Gross Margin of 39.21% is amongst the best of the industry. NTIC outperforms 80.49% of its industry peers.
NTIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTIC is destroying value.
The number of shares outstanding for NTIC has been increased compared to 1 year ago.
Compared to 5 years ago, NTIC has more shares outstanding
NTIC has a worse debt/assets ratio than last year.
2.2 Solvency
NTIC has an Altman-Z score of 3.48. This indicates that NTIC is financially healthy and has little risk of bankruptcy at the moment.
NTIC has a better Altman-Z score (3.48) than 85.37% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that NTIC is not too dependend on debt financing.
NTIC has a Debt to Equity ratio of 0.14. This is amongst the best in the industry. NTIC outperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.48 |
ROIC/WACC0.12
WACC8.45%
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 51.22% of its industry peers.
NTIC has a Quick Ratio of 1.32. This is a normal value and indicates that NTIC is financially healthy and should not expect problems in meeting its short term obligations.
NTIC has a Quick ratio (1.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for NTIC have decreased strongly by -38.10% in the last year.
Measured over the past 5 years, NTIC shows a small growth in Earnings Per Share. The EPS has been growing by 0.00% on average per year.
The Revenue has been growing slightly by 3.46% 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)-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
The Earnings Per Share is expected to decrease by -30.43% on average over the next years. This is quite bad
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-75.8%
EPS Next 2Y-30.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.12%
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.
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 quite expensively with a Price/Earnings ratio of 28.58.
NTIC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. NTIC is around the same levels.
NTIC is valuated quite expensively with a Price/Forward Earnings ratio of 26.02.
NTIC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, NTIC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 26.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTIC is valued a bit more expensive than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.43 |
4.3 Compensation for Growth
A cheap valuation may be justified as NTIC's earnings are expected to decrease with -30.43% in the coming years.
PEG (NY)N/A
PEG (5Y)7859.23
EPS Next 2Y-30.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTIC has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 4.00, NTIC is paying slightly less dividend.
With a Dividend Yield of 0.53, NTIC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of NTIC has a limited annual growth rate of 3.12%.
NTIC has paid a dividend for at least 10 years, which is 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 70.51% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of NTIC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP70.51%
EPS Next 2Y-30.43%
EPS Next 3YN/A
7.43
-0.14 (-1.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners35.96%
Inst Owner Change-1.53%
Ins Owners5.06%
Ins Owner Change5.15%
Market Cap70.36M
Revenue(TTM)85.27M
Net Income(TTM)2.95M
Analysts82.86
Price Target13.26 (78.47%)
Short Float %0.43%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.28
Dividend Growth(5Y)3.12%
DP70.51%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-30%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 26.02 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 33.38 | ||
| P/B | 0.97 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 22.43 |
EPS(TTM)0.26
EY3.5%
EPS(NY)0.29
Fwd EY3.84%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)0.22
OCFY3%
SpS9
BVpS7.64
TBVpS6.24
PEG (NY)N/A
PEG (5Y)7859.23
Graham Number6.69
Profitability
| Industry Rank | Sector 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
ROICexgc growth 3Y53.24%
ROICexgc 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 Rank | Sector 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 | 3.48 |
F-Score4
WACC8.45%
ROIC/WACC0.12
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-75.8%
EPS Next 2Y-30.43%
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 Year0.12%
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%
NORTHERN TECHNOLOGIES INTL / NTIC FAQ
What is the ChartMill fundamental rating of NORTHERN TECHNOLOGIES INTL (NTIC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NTIC.
What is the valuation status for NTIC stock?
ChartMill assigns a valuation rating of 1 / 10 to NORTHERN TECHNOLOGIES INTL (NTIC). This can be considered as Overvalued.
What is the profitability of NTIC stock?
NORTHERN TECHNOLOGIES INTL (NTIC) has a profitability rating of 5 / 10.
What is the valuation of NORTHERN TECHNOLOGIES INTL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORTHERN TECHNOLOGIES INTL (NTIC) is 28.58 and the Price/Book (PB) ratio is 0.97.
How financially healthy is NORTHERN TECHNOLOGIES INTL?
The financial health rating of NORTHERN TECHNOLOGIES INTL (NTIC) is 5 / 10.