NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis
NASDAQ:NTIC - Nasdaq - US6658091094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NTIC. NTIC was compared to 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 shows excellent growth, but is valued quite expensive already. These ratings would make NTIC suitable for growth investing!
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.
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 has a Return On Assets of 5.40%. This is in the better half of the industry: NTIC outperforms 78.31% of its industry peers.
NTIC has a Return On Equity (7.23%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.19%, NTIC is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 7.23% | ||
| ROIC | 3.19% |
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 5.89%. This is in the better half of the industry: NTIC outperforms 68.67% of its industry peers.
In the last couple of years the Profit Margin of NTIC has declined.
NTIC's Operating Margin of 3.88% is on the low side compared to the rest of the industry. NTIC is outperformed by 69.88% of its industry peers.
NTIC's Operating Margin has improved in the last couple of years.
NTIC has a better Gross Margin (40.15%) than 80.72% of its industry peers.
NTIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 5.89% | ||
| GM | 40.15% |
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.
Compared to 1 year ago, NTIC has more shares outstanding
Compared to 5 years ago, NTIC has more shares outstanding
Compared to 1 year ago, NTIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that NTIC is not in any danger for bankruptcy at the moment.
NTIC has a Altman-Z score of 4.87. This is amongst the best in the industry. NTIC outperforms 92.77% of its industry peers.
NTIC has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as NTIC would need 7.67 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.67, NTIC is doing good in the industry, outperforming 62.65% of the companies in the same industry.
NTIC has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
NTIC has a better Debt to Equity ratio (0.10) than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.36
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.22 indicates that NTIC has no problem at all paying its short term obligations.
NTIC has a Current ratio of 2.22. This is comparable to the rest of the industry: NTIC outperforms 54.22% of its industry peers.
A Quick Ratio of 1.43 indicates that NTIC should not have too much problems paying its short term obligations.
NTIC has a Quick ratio of 1.43. This is comparable to the rest of the industry: NTIC outperforms 56.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
NTIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
NTIC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.00% yearly.
Looking at the last year, NTIC shows a small growth in Revenue. The Revenue has grown by 7.59% in the last year.
The Revenue has been growing by 8.82% on average over the past years. This is quite good.
EPS 1Y (TTM)40%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-30%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%5.73%
3.2 Future
Based on estimates for the next years, NTIC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.74% on average per year.
The Revenue is expected to grow by 9.03% on average over the next years. This is quite good.
EPS Next Y-3.19%
EPS Next 2Y24.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y9.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.95 indicates a rather expensive valuation of NTIC.
Compared to the rest of the industry, the Price/Earnings ratio of NTIC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. NTIC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.17, the valuation of NTIC can be described as correct.
Based on the Price/Forward Earnings ratio, NTIC is valued a bit cheaper than the industry average as 73.49% of the companies are valued more expensively.
NTIC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
73.49% of the companies in the same industry are cheaper than NTIC, based on the Enterprise Value to EBITDA ratio.
NTIC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NTIC is more expensive than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.5 | ||
| EV/EBITDA | 20.49 |
4.3 Compensation for Growth
NTIC's earnings are expected to grow with 24.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)7836.5
EPS Next 2Y24.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTIC has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NTIC has falen by -20.16%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.28, NTIC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, NTIC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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
NTIC pays out 52.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NTIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.13%
EPS Next 2Y24.74%
EPS Next 3YN/A
11.17
-0.37 (-3.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners42.29%
Inst Owner Change-0.93%
Ins Owners4.73%
Ins Owner Change2.49%
Market Cap105.78M
Analysts82.86
Price Target20.4 (82.63%)
Short Float %1.57%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend0.28
Dividend Growth(5Y)3.12%
DP52.13%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.81%
Min EPS beat(2)-42.81%
Max EPS beat(2)3.2%
EPS beat(4)2
Avg EPS beat(4)-22.72%
Min EPS beat(4)-55.07%
Max EPS beat(4)3.81%
EPS beat(8)2
Avg EPS beat(8)-34.73%
EPS beat(12)2
Avg EPS beat(12)-35.02%
EPS beat(16)4
Avg EPS beat(16)-23.73%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-11.82%
Max Revenue beat(4)1.74%
Revenue beat(8)1
Avg Revenue beat(8)-4.67%
Revenue beat(12)3
Avg Revenue beat(12)-3.68%
Revenue beat(16)6
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-62.5%
EPS NQ rev (3m)-76.92%
EPS NY rev (1m)-20%
EPS NY rev (3m)-30%
Revenue NQ rev (1m)-9.42%
Revenue NQ rev (3m)-17.21%
Revenue NY rev (1m)-2.59%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 12.17 | ||
| P/S | 1.23 | ||
| P/FCF | 111.5 | ||
| P/OCF | 20.34 | ||
| P/B | 1.51 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 20.49 |
EPS(TTM)0.56
EY5.01%
EPS(NY)0.92
Fwd EY8.22%
FCF(TTM)0.1
FCFY0.9%
OCF(TTM)0.55
OCFY4.92%
SpS9.1
BVpS7.41
TBVpS6.32
PEG (NY)N/A
PEG (5Y)7836.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 7.23% | ||
| ROCE | 4.41% | ||
| ROIC | 3.19% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 3.94% | ||
| OM | 3.88% | ||
| PM (TTM) | 5.89% | ||
| GM | 40.15% | ||
| FCFM | 1.1% |
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-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 248.22% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 9.59 | ||
| Cash Conversion | 102.77% | ||
| Profit Quality | 18.69% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.87 |
F-Score7
WACC8.9%
ROIC/WACC0.36
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)40%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-30%
EPS Next Y-3.19%
EPS Next 2Y24.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%5.73%
Revenue Next Year7.13%
Revenue Next 2Y9.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1624.04%
EBIT growth 3Y62.47%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y148.65%
FCF growth 3YN/A
FCF growth 5Y-10.98%
OCF growth 1Y3159.63%
OCF growth 3Y26.74%
OCF growth 5Y1.43%