NL Industries, Inc. (NL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Valmont Industries, Inc.

Mueller Industries, Inc.

RBC Bearings, Inc.

Xometry, Inc.

CompX International, Inc.

NL Industries, Inc.

Insteel Industries, Inc.

Olympic Steel, Inc.

Park-Ohio Holdings Corp.

Gibraltar Industries, Inc.

Fathom Digital Manufacturing Corp.

Why is NL Industries, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.76% and Operating profit at 16.28% over the last 5 years

INTEREST(HY) At USD 0.66 MM has Grown at 126.96%
OPERATING CASH FLOW(Y) Lowest at USD -36.89 MM
CASH AND EQV(HY) Lowest at USD 262.69 MM

Below par performance in long term as well as near term

Along with generating -30.32% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NL Industries, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NL Industries, Inc.

6.39%

-0.32

49.19%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.68%

EBIT Growth (5y)

26.82%

EBIT to Interest (avg)

12.56

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.41

Tax Ratio

17.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

12.03%

ROCE (avg)

5.80%

ROE (avg)

10.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.79

EV to EBIT

12.34

EV to EBITDA

9.74

EV to Capital Employed

0.69

EV to Sales

1.07

PEG Ratio

Dividend Yield

10.05%

ROCE (Latest)

5.57%

ROE (Latest)

-5.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -11.93% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 8.86

NET SALES(Q)

Highest at USD 43.61 MM

OPERATING PROFIT(Q)

Highest at USD 7.59 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.4 %

PRE-TAX PROFIT(Q)

Highest at USD 12.51 MM

NET PROFIT(Q)

Highest at USD 9.08 MM

EPS(Q)

Highest at USD 0.18

-8What is not working for the Company

NET PROFIT(9M)

At USD -14.01 MM has Grown at -137.09%

DEBT-EQUITY RATIO (HY)

Highest at -29.94 %

CASH AND EQV(HY)

Lowest at USD 215.15 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.4 times

Here's what is working for NL Industries, Inc.

Pre-Tax Profit

At USD 12.51 MM has Grown at 222.88%

over average net sales of the previous four periods of USD -10.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 9.08 MM has Grown at 228.59%

over average net sales of the previous four periods of USD -7.06 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 43.61 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 7.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 17.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 12.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 9.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend per share

Highest at USD 8.86

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -11.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for NL Industries, Inc.

Debt-Equity Ratio

Highest at -29.94 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 215.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio