NORTHERN TECHNOLOGIES INTL (NTIC) Stock Fundamental Analysis
NASDAQ:NTIC - Nasdaq - US6658091094 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NTIC. NTIC was compared to 85 industry peers in the Chemicals industry. NTIC has only an average score on both its financial health and profitability. NTIC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NTIC was profitable.
In the past year NTIC had a positive cash flow from operations.
Of the past 5 years NTIC 4 years were profitable.
NTIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, NTIC is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
NTIC has a Return On Equity of 5.46%. This is comparable to the rest of the industry: NTIC outperforms 56.47% of its industry peers.
NTIC has a worse Return On Invested Capital (1.30%) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.46% | ||
| ROIC | 1.3% |
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 (4.51%) than 63.53% of its industry peers.
In the last couple of years the Profit Margin of NTIC has declined.
With a Operating Margin value of 1.62%, NTIC is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NTIC has grown nicely.
Looking at the Gross Margin, with a value of 39.16%, NTIC belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
NTIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| PM (TTM) | 4.51% | ||
| GM | 39.16% |
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
The number of shares outstanding for NTIC has been increased compared to 5 years ago.
NTIC has a worse debt/assets ratio than last year.
2.2 Solvency
NTIC has an Altman-Z score of 3.64. This indicates that NTIC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NTIC (3.64) is better than 83.53% of its industry peers.
NTIC has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.12, NTIC belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.64 |
ROIC/WACC0.15
WACC8.56%
2.3 Liquidity
NTIC has a Current Ratio of 2.18. This indicates that NTIC is financially healthy and has no problem in meeting its short term obligations.
NTIC has a better Current ratio (2.18) than 62.35% of its industry peers.
A Quick Ratio of 1.35 indicates that NTIC should not have too much problems paying its short term obligations.
NTIC has a Quick ratio of 1.35. This is in the better half of the industry: NTIC outperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
NTIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.08%.
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 2.11% 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)-27.08%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-116.67%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%-8.5%
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.
Based on estimates for the next years, NTIC will show a quite strong growth in Revenue. The Revenue will grow by 9.03% on average per year.
EPS Next Y-65.42%
EPS Next 2Y-39.75%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.10, the valuation of NTIC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NTIC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.63, NTIC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 32.84, the valuation of NTIC can be described as expensive.
63.53% of the companies in the same industry are cheaper than NTIC, based on the Price/Forward Earnings ratio.
NTIC is valuated expensively when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 32.84 |
4.2 Price Multiples
71.76% 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 | 19.56 |
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)5527.9
EPS Next 2Y-39.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTIC has a yearly dividend return of 0.58%, which is pretty low.
The stock price of NTIC dropped by -43.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NTIC's Dividend Yield is slightly below the industry average, which is at 3.98.
With a Dividend Yield of 0.58, NTIC pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
69.55% of the earnings are spent on dividend by NTIC. 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.
DP69.55%
EPS Next 2Y-39.75%
EPS Next 3YN/A
NASDAQ:NTIC (4/22/2025, 1:55:06 PM)
7.035
+0.2 (+2.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners42.29%
Inst Owner Change0.05%
Ins Owners4.73%
Ins Owner Change0%
Market Cap66.62M
Analysts82.86
Price Target20.4 (189.98%)
Short Float %1.76%
Short Ratio7.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.28
Dividend Growth(5Y)3.12%
DP69.55%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-95.91%
Min EPS beat(2)-149.02%
Max EPS beat(2)-42.81%
EPS beat(4)1
Avg EPS beat(4)-60.92%
Min EPS beat(4)-149.02%
Max EPS beat(4)3.2%
EPS beat(8)2
Avg EPS beat(8)-47.67%
EPS beat(12)2
Avg EPS beat(12)-44.55%
EPS beat(16)3
Avg EPS beat(16)-36.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)-0.38%
Revenue beat(4)1
Avg Revenue beat(4)-4.48%
Min Revenue beat(4)-11.82%
Max Revenue beat(4)1.74%
Revenue beat(8)1
Avg Revenue beat(8)-4.08%
Revenue beat(12)3
Avg Revenue beat(12)-3.74%
Revenue beat(16)5
Avg Revenue beat(16)-2.66%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-77.78%
EPS NQ rev (3m)-80.95%
EPS NY rev (1m)-64.29%
EPS NY rev (3m)-71.43%
Revenue NQ rev (1m)-10.78%
Revenue NQ rev (3m)-13.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 32.84 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 19.37 | ||
| P/B | 0.96 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 19.56 |
EPS(TTM)0.35
EY4.98%
EPS(NY)0.21
Fwd EY3.04%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.36
OCFY5.16%
SpS8.92
BVpS7.36
TBVpS5.94
PEG (NY)N/A
PEG (5Y)5527.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.46% | ||
| ROCE | 1.81% | ||
| ROIC | 1.3% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.66% | ||
| OM | 1.62% | ||
| PM (TTM) | 4.51% | ||
| GM | 39.16% | ||
| 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 267.84% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 112.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.64 |
F-Score4
WACC8.56%
ROIC/WACC0.15
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)-27.08%
EPS 3Y-2.68%
EPS 5Y0%
EPS Q2Q%-116.67%
EPS Next Y-65.42%
EPS Next 2Y-39.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.11%
Revenue growth 3Y14.62%
Revenue growth 5Y8.82%
Sales Q2Q%-8.5%
Revenue Next Year7.13%
Revenue Next 2Y9.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.57%
EBIT growth 3Y62.47%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.07%
FCF growth 3YN/A
FCF growth 5Y-10.98%
OCF growth 1Y179.59%
OCF growth 3Y26.74%
OCF growth 5Y1.43%