NL Industries (NL) AI Stock Analysis

• Market Cap: $386.87M
• Dividend Yield: 4.17%
• Average Volume (3M): 27.53K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.67
• Revenue Growth: -9.52%
• EPS Growth: N/A
• Country: US
• Employees: 3,034
• Sector: Industrials
• Sector Strength: 61
• Industry: Security & Protection Services
• EPS (TTM): 1.38
• Shares Outstanding: 48,847,733
• 10 Day Avg. Volume: 28,952
• 30 Day Avg. Volume: 27,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.56
• Price to Cash Flow (P/CF): 10.40
• P/FCF Ratio: 10.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

NL Industries demonstrates a strong overall financial position with effective cost management and a solid balance sheet. The technical indicators suggest a neutral trend with limited momentum, while the valuation metrics indicate potential undervaluation. The recent dividend announcement highlights a positive corporate event, enhancing investor confidence. However, the core challenge remains achieving revenue growth to sustain long-term success.

NL Industries Business Overview & Revenue Model

Company Description

NL Industries (NL) is a diversified holding company primarily engaged in the manufacture and sale of products through its subsidiaries. The company operates in the chemicals sector, with a particular focus on the production of titanium dioxide (TiO2) pigments, which are used in a wide range of applications including coatings, plastics, paper, and other industrial products. NL Industries is headquartered in the United States and is a part of the Valhi, Inc. corporate group.

How the Company Makes Money

NL Industries generates revenue primarily through its subsidiary, Kronos Worldwide, Inc., which is one of the leading producers and marketers of titanium dioxide pigments globally. The company earns money by manufacturing and selling TiO2, which is critical for imparting whiteness, brightness, and opacity to various end products. Revenue streams are significantly influenced by the demand in the coatings, plastics, and paper industries. Additionally, NL Industries benefits from strategic partnerships and a global distribution network that enhances its market reach. The company's earnings are also affected by fluctuations in raw material prices, environmental regulations, and global economic conditions.

NL Industries Financial Statement Overview

Summary

NL Industries exhibits a solid financial position with robust profitability and a strong balance sheet. While revenue growth remains a challenge, the company has effectively managed costs to improve margins. The balance sheet reflects strong equity and low leverage, enhancing financial stability. Cash flow management is generally sound, though slight declines in operating cash flow warrant attention. Overall, NL is well-positioned but should focus on revenue growth to sustain long-term success.

Income Statement

NL Industries has shown strong net profit growth in the latest period, rebounding from a net loss to a significant net profit. However, revenue has decreased from the previous year, indicating a potential challenge in sales growth. The EBIT and EBITDA margins have improved significantly, reflecting effective cost management, despite the drop in revenue.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is favorable, suggesting conservative leverage. Stockholders' equity has grown, supporting a strong balance sheet, though total liabilities have increased, which should be monitored.

Cash Flow

Operating cash flow has decreased compared to the previous year but remains positive, supporting free cash flow generation. The free cash flow to net income ratio is strong, indicating efficient cash conversion from profits. However, the reduction in operating cash flow indicates potential challenges in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
145.94M	161.29M	166.60M	140.80M	114.50M
	Gross Profit
41.36M	49.22M	48.80M	42.70M	32.80M
	EBIT
37.88M	14.13M	44.32M	41.96M	19.67M
	EBITDA
87.54M	-1.10M	44.65M	66.61M	18.85M
	Net Income Common Stockholders
67.23M	-2.31M	33.84M	51.19M	14.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.15M	164.67M	139.03M	147.00M	137.04M
	Total Assets
578.26M	576.66M	609.87M	596.15M	548.15M
	Total Debt
500.00K	500.00K	500.00K	500.00K	500.00K
	Net Debt
-162.65M	-111.02M	-68.37M	-146.50M	-136.54M
	Total Liabilities
162.35M	184.90M	207.12M	211.18M	212.80M
	Stockholders Equity
396.90M	369.81M	382.15M	362.47M	311.88M
Cash Flow		Free Cash Flow
24.14M	35.87M	23.24M	13.52M	17.28M
	Operating Cash Flow
25.57M	37.00M	26.93M	17.61M	19.02M
	Investing Cash Flow
58.87M	22.10M	-67.87M	6.71M	-3.14M
	Financing Cash Flow
-41.63M	-15.23M	-36.80M	-14.35M	-8.48M

NL Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL, the sentiment is Positive. The current price of 7.94 is above the 20-day moving average (MA) of 7.72, above the 50-day MA of 7.31, and above the 200-day MA of 7.04, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL.

NL Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NL	68 Neutral	$386.87M	5.75	17.53%	4.17%	-9.52%	―
KRO	68 Neutral	$817.91M	9.49	10.61%	4.78%	13.24%	―
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
VHI	60 Neutral	$462.62M	4.31	10.95%	1.96%	9.53%	―
ASH	57 Neutral	$2.44B	21.03	0.18%	3.13%	-4.35%	-115.63%
CC	53 Neutral	$1.78B	20.74	12.98%	8.42%	-4.05%	―
HUN	50 Neutral	$2.48B	―	-5.22%	7.01%	-1.23%	-277.52%

NL Industries Corporate Events

NL Industries Declares Q1 2025 Dividend Announcement

On February 27, 2025, NL Industries announced a quarterly dividend of $0.09 per share for the first quarter of 2025, payable on March 27, 2025, to shareholders recorded by March 11, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially impacting its market positioning and investor relations positively.