Why is Northern Technologies International Corp. ?
1
Poor long term growth as Operating profit has grown by an annual rate 7.53% of over the last 5 years
2
The company has declared negative results for the last 2 consecutive quarters
- The company has declared negative results in Nov 24 after 3 consecutive negative quarters
- INTEREST(HY) At USD 0.3 MM has Grown at 118.78%
- PRE-TAX PROFIT(Q) At USD 0.74 MM has Fallen at -39.59%
- NET PROFIT(Q) At USD 0.12 MM has Fallen at -83.9%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -44.88% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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 Other Industrial Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Northern Technologies International Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Northern Technologies International Corp.
-43.21%
-1.30
44.56%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
10.80%
EBIT Growth (5y)
7.53%
EBIT to Interest (avg)
-4.86
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
1.09
Tax Ratio
25.94%
Dividend Payout Ratio
50.90%
Pledged Shares
0
Institutional Holding
51.18%
ROCE (avg)
0
ROE (avg)
6.15%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.00
EV to EBIT
-19.84
EV to EBITDA
-36.54
EV to Capital Employed
1.00
EV to Sales
0.87
PEG Ratio
NA
Dividend Yield
294.42%
ROCE (Latest)
-5.06%
ROE (Latest)
5.71%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bearish
Technical Movement
2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 78.12%
RAW MATERIAL COST(Y)
Fallen by -0.65% (YoY
-28What is not working for the Company
INTEREST(HY)
At USD 0.3 MM has Grown at 118.78%
PRE-TAX PROFIT(Q)
At USD 0.74 MM has Fallen at -39.59%
NET PROFIT(Q)
At USD 0.12 MM has Fallen at -83.9%
OPERATING CASH FLOW(Y)
Lowest at USD 2.11 MM
DEBT-EQUITY RATIO
(HY)
Highest at 5.17 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.68 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.82 times
DIVIDEND PER SHARE(HY)
Lowest at USD 4.82
EPS(Q)
Lowest at USD 0.01
Here's what is working for Northern Technologies International Corp.
Dividend Payout Ratio
Highest at 78.12%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.65% (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 Northern Technologies International Corp.
Interest
At USD 0.3 MM has Grown at 118.78%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
At USD 0.74 MM has Fallen at -39.59%
over average net sales of the previous four periods of USD 1.23 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 0.12 MM has Fallen at -83.9%
over average net sales of the previous four periods of USD 0.76 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD 2.11 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
EPS
Lowest at USD 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 5.17 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.68 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.82 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend per share
Lowest at USD 4.82
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (USD)
Non Operating Income
Highest at USD 3.11 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






