NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis
USA - NASDAQ:NTIC - US6658091094 - Common Stock
7.48 USD
+0.05 (+0.67%)
Taking everything into account, NTIC scores 4 out of 10 in our fundamental rating. NTIC was compared to 82 industry peers in the Chemicals industry. NTIC has only an average score on both its financial health and profitability. NTIC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NTIC had positive earnings in the past year.
NTIC had a positive operating cash flow in the past year.
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 has a better Return On Assets (2.97%) than 67.07% of its industry peers.
NTIC has a Return On Equity of 4.08%. This is comparable to the rest of the industry: NTIC outperforms 57.32% of its industry peers.
NTIC has a Return On Invested Capital of 1.02%. This is in the lower half of the industry: NTIC underperforms 74.39% 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 Profit Margin of 3.46%. This is in the better half of the industry: NTIC outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of NTIC has declined.
NTIC's Operating Margin of 1.33% is on the low side compared to the rest of the industry. NTIC is outperformed by 78.05% of its industry peers.
NTIC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 39.21%, NTIC belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
NTIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.33% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for NTIC is higher compared to a year ago.
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's Altman-Z score of 3.48 is amongst the best of the industry. NTIC outperforms 85.37% of its industry peers.
NTIC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
NTIC has a better Debt to Equity ratio (0.14) than 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
WACC8.43%
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.
Looking at the Current ratio, with a value of 2.03, NTIC is in line with its industry, outperforming 51.22% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
NTIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.10%.
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.
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 -30.43% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.77, NTIC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NTIC.
The average S&P500 Price/Earnings ratio is at 26.51. NTIC is around the same levels.
Based on the Price/Forward Earnings ratio of 26.19, the valuation of NTIC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTIC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.53. NTIC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
75.61% of the companies in the same industry are cheaper than NTIC, based on the Enterprise Value to EBITDA ratio.
| 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)7912.11
EPS Next 2Y-30.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, NTIC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.99, NTIC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, NTIC's dividend is way lower than the S&P500 average.
| 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 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
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-30.43%
EPS Next 3YN/A
NASDAQ:NTIC (11/3/2025, 5:20:02 PM)
7.48
+0.05 (+0.67%)
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 Cap70.84M
Revenue(TTM)85.27M
Net Income(TTM)2.95M
Analysts82.86
Price Target13.26 (77.27%)
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 | 28.77 | ||
| Fwd PE | 26.19 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 33.61 | ||
| P/B | 0.98 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 22.43 |
EPS(TTM)0.26
EY3.48%
EPS(NY)0.29
Fwd EY3.82%
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
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
WACC8.43%
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 28.77 and the Price/Book (PB) ratio is 0.98.
How financially healthy is NORTHERN TECHNOLOGIES INTL?
The financial health rating of NORTHERN TECHNOLOGIES INTL (NTIC) is 5 / 10.