NL INDUSTRIES (NL)
US6291564077 - Common Stock
NL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. NL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NL is valued quite cheap, while showing a decent growth score. This is a good combination! This makes NL very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NL was profitable.
In the past year NL had a positive cash flow from operations.
NL had positive earnings in 4 of the past 5 years.
In the past 5 years NL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.95%, NL belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
NL's Return On Equity of 15.09% is fine compared to the rest of the industry. NL outperforms 76.83% of its industry peers.
The Return On Invested Capital of NL (1.80%) is worse than 64.63% of its industry peers.
NL had an Average Return On Invested Capital over the past 3 years of 2.27%. This is significantly below the industry average of 9.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.95% | ||
| ROE | 15.09% | ||
| ROIC | 1.8% |
ROA(3y)4.58%
ROA(5y)4.21%
ROE(3y)7.45%
ROE(5y)7.11%
ROIC(3y)2.27%
ROIC(5y)2%
1.3 Margins
With an excellent Profit Margin value of 38.67%, NL belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
With a decent Operating Margin value of 8.37%, NL is doing good in the industry, outperforming 60.98% of the companies in the same industry.
In the last couple of years the Operating Margin of NL has grown nicely.
NL has a Gross Margin of 29.15%. This is comparable to the rest of the industry: NL outperforms 45.12% of its industry peers.
NL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.37% | ||
| PM (TTM) | 38.67% | ||
| GM | 29.15% |
OM growth 3Y46.72%
OM growth 5Y9.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
NL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NL has been increased compared to 5 years ago.
NL has a worse debt/assets ratio than last year.
2.2 Solvency
NL has an Altman-Z score of 2.58. This is not the best score and indicates that NL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.58, NL perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
The Debt to FCF ratio of NL is 0.01, which is an excellent value as it means it would take NL, only 0.01 years of fcf income to pay off all of its debts.
NL has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. NL outperforms 93.90% of its industry peers.
NL has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
NL has a better Debt to Equity ratio (0.00) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.2
WACC9.21%
2.3 Liquidity
A Current Ratio of 6.72 indicates that NL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.72, NL belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
NL has a Quick Ratio of 5.89. This indicates that NL is financially healthy and has no problem in meeting its short term obligations.
NL has a Quick ratio of 5.89. This is amongst the best in the industry. NL outperforms 96.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.72 | ||
| Quick Ratio | 5.89 |
3. Growth
3.1 Past
NL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 472.80%, which is quite impressive.
Looking at the last year, NL shows a decrease in Revenue. The Revenue has decreased by -4.75% in the last year.
Measured over the past years, NL shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
EPS 1Y (TTM)472.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y12.1%
Revenue growth 5Y6.41%
Sales Q2Q%-16.67%
3.2 Future
NL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 122.53% yearly.
NL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y825.49%
EPS Next 2Y222.98%
EPS Next 3Y122.53%
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y3.2%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 6.50 indicates a rather cheap valuation of NL.
93.90% of the companies in the same industry are more expensive than NL, based on the Price/Earnings ratio.
NL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 8.74 indicates a reasonable valuation of NL.
Based on the Price/Forward Earnings ratio, NL is valued cheaply inside the industry as 93.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.69. NL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NL is valued cheaper than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.4 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
NL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NL has a very decent profitability rating, which may justify a higher PE ratio.
NL's earnings are expected to grow with 122.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y222.98%
EPS Next 3Y122.53%
5. Dividend
5.1 Amount
NL has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 2.13, NL pays a better dividend. On top of this NL pays more dividend than 93.90% of the companies listed in the same industry.
NL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of NL decreases each year by -10.91%.
NL has been paying a dividend for at least 10 years, so it has a reliable track record.
NL has decreased its dividend recently.
Dividend Growth(5Y)-10.91%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
61.95% of the earnings are spent on dividend by NL. This is not a sustainable payout ratio.
DP61.95%
EPS Next 2Y222.98%
EPS Next 3Y122.53%
NL INDUSTRIES
NYSE:NL (1/3/2025, 8:04:00 PM)
After market: 7.74 0 (0%)7.74
+0.08 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners12%
Inst Owner Change2.05%
Ins Owners0.27%
Ins Owner Change0%
Market Cap378.10M
Analysts37.78
Price Target6.12 (-20.93%)
Short Float %0.96%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Dividend Growth(5Y)-10.91%
DP61.95%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)20.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.74 | ||
| P/S | 2.51 | ||
| P/FCF | 10.4 | ||
| P/OCF | 9.92 | ||
| P/B | 0.98 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)1.19
EY15.37%
EPS(NY)0.89
Fwd EY11.44%
FCF(TTM)0.74
FCFY9.62%
OCF(TTM)0.78
OCFY10.08%
SpS3.08
BVpS7.9
TBVpS7.35
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.95% | ||
| ROE | 15.09% | ||
| ROCE | 2.28% | ||
| ROIC | 1.8% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 2.63% | ||
| OM | 8.37% | ||
| PM (TTM) | 38.67% | ||
| GM | 29.15% | ||
| FCFM | 24.14% |
ROA(3y)4.58%
ROA(5y)4.21%
ROE(3y)7.45%
ROE(5y)7.11%
ROIC(3y)2.27%
ROIC(5y)2%
ROICexc(3y)3.11%
ROICexc(5y)2.72%
ROICexgc(3y)3.33%
ROICexgc(5y)2.92%
ROCE(3y)2.87%
ROCE(5y)2.53%
ROICexcg growth 3Y64.79%
ROICexcg growth 5Y14.35%
ROICexc growth 3Y64.77%
ROICexc growth 5Y14.52%
OM growth 3Y46.72%
OM growth 5Y9.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y-1.19%
F-Score4
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 46.15% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 141.72 | ||
| Cash Conversion | 233.02% | ||
| Profit Quality | 62.42% | ||
| Current Ratio | 6.72 | ||
| Quick Ratio | 5.89 | ||
| Altman-Z | 2.58 |
F-Score4
WACC9.21%
ROIC/WACC0.2
Cap/Depr(3y)76.28%
Cap/Depr(5y)72.01%
Cap/Sales(3y)1.94%
Cap/Sales(5y)1.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)472.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y825.49%
EPS Next 2Y222.98%
EPS Next 3Y122.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y12.1%
Revenue growth 5Y6.41%
Sales Q2Q%-16.67%
Revenue Next Year3.9%
Revenue Next 2Y3.2%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
EBIT growth 1Y-16.47%
EBIT growth 3Y64.47%
EBIT growth 5Y16.54%
EBIT Next Year37.5%
EBIT Next 3Y17.57%
EBIT Next 5YN/A
FCF growth 1Y139.29%
FCF growth 3Y27.52%
FCF growth 5Y20.71%
OCF growth 1Y90.48%
OCF growth 3Y24.88%
OCF growth 5Y16.69%