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NL Industries (NL)
NYSE:NL
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NL Industries (NL) AI Stock Analysis

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NL Industries

(NYSE:NL)

Rating:72Outperform
Price Target:
$7.00
▲(6.87% Upside)
NL Industries has a solid financial foundation with strong profitability and low leverage, but faces liquidity challenges. The stock's valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a neutral to slightly bullish trend. These factors combined result in a moderately positive overall stock score.

NL Industries (NL) vs. SPDR S&P 500 ETF (SPY)

NL Industries Business Overview & Revenue Model

Company DescriptionNL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. The company manufactures and sells mechanical and electronic cabinet locks, and other locking mechanisms, including disc tumbler locks, pin tumbler locking mechanisms, and CompX eLock and StealthLock electronic locks for use in various applications, such as ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, integrated inventory and access control secured narcotics boxes, vending and cash containment machines, medical cabinetry, electronic circuit panels, storage compartments, and gas station security. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; grab handles, pin cleats, and other accessories; and dash panels, LED indicators, wire harnesses, and other accessories primarily for performance and ski/wakeboard boats. In addition, the company offers insurance brokerage and risk management services. It sells its component products directly to original equipment manufacturers, as well as through distributors. NL Industries, Inc. was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. is a subsidiary of Valhi, Inc.
How the Company Makes MoneyNL Industries generates revenue through the sale of its diverse product lines, which include high-performance coatings and specialty chemicals. The company's revenue model is primarily based on direct sales to customers across various industries. Key revenue streams include the sale of coatings used in industrial applications, specialty chemicals for various manufacturing processes, and other related products. Additionally, NL Industries may benefit from strategic partnerships with other manufacturers and suppliers, which can enhance its market reach and operational efficiency. Factors contributing to its earnings include market demand for high-quality industrial products, the ability to innovate and adapt to changing industry trends, and maintaining competitive pricing in a dynamic marketplace.

NL Industries Financial Statement Overview

Summary
NL Industries exhibits strong financial health with a solid balance sheet and historically profitable operations. Recent trends indicate revenue and net income declines, impacting cash flow. Nonetheless, low leverage and strong equity provide a buffer against operational fluctuations.
Income Statement
75
Positive
NL Industries has demonstrated strong revenue growth between 2020 and 2021, but recent figures indicate a decline in revenue from 2022 to 2025. The gross profit margin is relatively stable, indicating effective cost management. The TTM (Trailing-Twelve-Months) EBIT and EBITDA margins show profitability, though net income has decreased, impacting net profit margins negatively.
Balance Sheet
82
Very Positive
The company maintains a robust balance sheet with a low debt-to-equity ratio due to minimal debt and substantial equity. The equity ratio is high, reflecting financial stability and low leverage. Return on equity has fluctuated, recently declining due to lower net income, but overall equity growth has been strong.
Cash Flow
68
Positive
Free cash flow has been volatile, with recent negative free cash flow in the TTM period. The operating cash flow to net income ratio indicates challenges in converting income to cash flow. However, positive free cash flow in previous years demonstrates potential for recovery.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.72M145.94M161.29M166.60M140.80M114.50M
Gross Profit45.58M41.36M49.22M48.80M42.70M32.80M
EBITDA72.19M107.84M-1.10M44.65M66.61M18.85M
Net Income53.58M67.23M-2.31M33.84M51.19M14.68M
Balance Sheet
Total Assets523.70M578.26M576.66M609.87M596.15M548.15M
Cash, Cash Equivalents and Short-Term Investments132.14M163.15M164.67M139.03M147.00M137.04M
Total Debt500.00K500.00K500.00K500.00K500.00K500.00K
Total Liabilities106.69M162.35M184.90M207.12M211.18M212.80M
Stockholders Equity397.58M396.90M369.81M382.15M362.47M311.88M
Cash Flow
Free Cash Flow-39.76M24.14M35.87M23.24M13.52M17.28M
Operating Cash Flow-36.89M25.57M37.00M26.93M17.61M19.02M
Investing Cash Flow14.44M58.87M22.10M-67.87M6.71M-3.14M
Financing Cash Flow-42.62M-41.63M-15.23M-36.80M-14.35M-8.48M

NL Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.55
Price Trends
50DMA
6.22
Positive
100DMA
6.81
Negative
200DMA
7.02
Negative
Market Momentum
MACD
0.07
Negative
RSI
56.53
Neutral
STOCH
63.00
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 6.55 is above the 20-day moving average (MA) of 6.12, above the 50-day MA of 6.22, and below the 200-day MA of 7.02, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL.

NL Industries Risk Analysis

NL Industries disclosed 17 risk factors in its most recent earnings report. NL Industries reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NL Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$317.44M17.9511.62%12.03%-2.96%-11.81%
72
Outperform
$309.30M6.1513.89%5.02%-2.97%141.19%
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
61
Neutral
$297.40M26.085.63%-4.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL
NL Industries
6.55
0.27
4.30%
CIX
Compx International
25.70
-0.48
-1.83%
MG
Mistras Group
9.52
-2.01
-17.43%

NL Industries Corporate Events

DividendsFinancial Disclosures
NL Industries Declares Special and Quarterly Dividends
Neutral
Aug 6, 2025

NL Industries announced a special dividend of 21 cents per share and a quarterly dividend of 9 cents per share for the third quarter of 2025. The company reported a significant decline in net income for the second quarter of 2025 compared to the same period in 2024, primarily due to unrealized losses in marketable equity securities and decreased earnings from its Kronos subsidiary. CompX, a segment of NL Industries, showed increased sales and profits due to higher demand in government and marine markets. Kronos faced challenges with lower TiO2 selling prices and reduced operating rates, impacting its income from operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025