Is Northern Technologies International Corp. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Northern Technologies International Corp. has moved from expensive to fair. Based on the analysis, the company is currently fairly valued. The P/E ratio stands at 18, which is in line with the industry average of approximately 17.06, while the EV to EBITDA ratio is significantly negative at -36.54, indicating potential operational challenges. The dividend yield is exceptionally high at 294.42%, reflecting a strong return to shareholders despite the company's recent performance.
In comparison to peers, UFP Technologies, Inc. has a P/E ratio of 27.51 and an EV to EBITDA of 18.48, suggesting it is more expensive, while Aspen Aerogels, Inc. shows a lower P/E of 12.63 but is considered risky. The stock has underperformed the S&P 500 over the past year, with a return of -52.13% compared to the index's 12.59%, reinforcing the notion of cautious optimism regarding its current valuation.