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

Mueller Industries, Inc.

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Olympic Steel, Inc.

Park-Ohio Holdings Corp.

NL 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.

-27.19%

-0.32

49.19%

S&P 500

13.68%

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)

6.85%

EBIT Growth (5y)

28.89%

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

23.25%

Pledged Shares

Institutional Holding

11.94%

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

Industry P/E

Price to Book Value

0.76

EV to EBIT

10.44

EV to EBITDA

4.08

EV to Capital Employed

0.64

EV to Sales

1.01

PEG Ratio

Dividend Yield

10.00%

ROCE (Latest)

6.09%

ROE (Latest)

9.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.48 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.72 times

DIVIDEND PER SHARE(HY)

Highest at USD 9.72

-26What is not working for the Company

INTEREST(9M)

At USD 0.75 MM has Grown at 71.59%

OPERATING CASH FLOW(Y)

Lowest at USD -23.27 MM

NET PROFIT(Q)

Lowest at USD -6.32 MM

CASH AND EQV(HY)

Lowest at USD 255.34 MM

DEBT-EQUITY RATIO (HY)

Highest at -32.69 %

PRE-TAX PROFIT(Q)

Lowest at USD -6.67 MM

EPS(Q)

Lowest at USD -0.16

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

Inventory Turnover Ratio

Highest at 4.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 9.72

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.88% (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.

Pre-Tax Profit

At USD -6.67 MM has Fallen at -137.12%

over average net sales of the previous four periods of USD 17.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -6.32 MM has Fallen at -142.68%

over average net sales of the previous four periods of USD 14.8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 0.75 MM has Grown at 71.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD -6.32 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -23.27 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD -6.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 255.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -32.69 %

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