NL Industries (NL) AI Stock Analysis

• Market Cap: $274.61M
• Dividend Yield: 10.05%
• Average Volume (3M): 25.21K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.84
• Revenue Growth: 5.51%
• EPS Growth: -83.40%
• Country: US
• Employees: 3,034
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.16
• Shares Outstanding: 48,862,736
• 10 Day Avg. Volume: 24,664
• 30 Day Avg. Volume: 25,212
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 15.72
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 10.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $6.00 ▲(4.53% Upside)

NL Industries' overall stock score is primarily influenced by its mixed financial performance, with strong balance sheet metrics but significant cash flow challenges. The technical analysis indicates a bearish trend, while the high P/E ratio suggests potential overvaluation. However, the attractive dividend yield provides a positive aspect for income investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability and reduces risk, providing a solid foundation for future growth.

Dividend Commitment

Consistent dividend payments reflect a commitment to returning value to shareholders, which can enhance investor confidence and attract income-focused investors.

Revenue Growth

Moderate revenue growth indicates a positive trend in market demand and product adoption, supporting long-term business expansion.

Negative Factors

Cash Flow Challenges

Cash flow challenges can hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.

Low Profitability

Low profitability from equity suggests inefficiencies in generating returns, which can limit reinvestment capabilities and shareholder value creation.

Decline in Revenue Growth

A historical decline in revenue growth may indicate challenges in maintaining market position and competitiveness, affecting future performance.

NL Industries Business Overview & Revenue Model

Company Description

NL Industries, Inc. is a diversified holding company primarily engaged in the manufacturing and sale of various industrial products, with a strong focus on the chemical and coatings sectors. The company operates through its subsidiaries, which include Crown Crafts, Inc. and other entities involved in the production of specialty chemicals, coatings, and related products, serving a wide range of industries such as construction, automotive, and consumer goods.

How the Company Makes Money

NL Industries generates revenue through the sale of its industrial products, including specialty chemicals and coatings, which are sold to a diverse customer base in various sectors. Key revenue streams include direct sales to manufacturers and distributors, as well as long-term contracts with large corporations. The company also benefits from strategic partnerships with other firms in the chemical industry, enhancing its market reach and product offerings. Additionally, NL Industries leverages its expertise in innovation to develop new products that meet evolving customer needs, further driving sales and profitability.

NL Industries Financial Statement Overview

Summary

NL Industries demonstrates strong profitability with a robust net profit margin and low debt-to-equity ratio, indicating financial stability. However, liquidity challenges due to negative cash flows necessitate attention to cash flow management.

Income Statement

NL Industries shows a strong gross profit margin of approximately 29.85% in TTM, indicating efficient cost management. The net profit margin is robust at 35.08%, suggesting high profitability. However, revenue growth is modest at 3.02%, and there is a notable decline in net income from the previous year. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0013, indicating minimal leverage and financial risk. The return on equity is solid at 13.58%, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a stable financial structure with a high proportion of equity financing.

Cash Flow

NL Industries faces challenges with negative operating and free cash flows in the TTM, indicating liquidity issues. Despite this, the free cash flow to net income ratio is positive, suggesting that the company is generating cash relative to its net income. The free cash flow growth rate is positive, showing improvement over the previous period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.00M	145.94M	161.29M	166.56M	140.81M	114.54M
Gross Profit	47.15M	41.36M	49.22M	48.80M	42.75M	32.85M
EBITDA	19.00M	107.84M	-1.70M	44.16M	65.82M	18.77M
Net Income	9.70M	67.23M	-2.31M	33.84M	51.19M	14.68M
Balance Sheet
Total Assets	500.20M	578.26M	576.66M	609.87M	596.15M	548.15M
Cash, Cash Equivalents and Short-Term Investments	101.92M	163.15M	164.67M	139.03M	147.00M	137.04M
Total Debt	500.00K	500.00K	500.00K	500.00K	500.00K	500.00K
Total Liabilities	106.93M	162.35M	184.90M	207.12M	211.18M	212.80M
Stockholders Equity	375.38M	396.90M	369.81M	382.15M	362.47M	311.88M
Cash Flow
Free Cash Flow	-26.66M	24.14M	35.87M	23.24M	13.52M	17.28M
Operating Cash Flow	-23.27M	25.57M	37.00M	26.93M	17.61M	19.02M
Investing Cash Flow	1.42M	58.87M	22.10M	-67.87M	6.71M	-3.14M
Financing Cash Flow	-30.81M	-41.63M	-15.23M	-36.80M	-14.35M	-8.48M

NL Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 5.74 is above the 20-day moving average (MA) of 5.49, above the 50-day MA of 5.65, and below the 200-day MA of 6.33, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 79.08 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
CIX	73 Outperform	$268.89M	13.92	13.65%	9.03%	5.52%	2.86%
BAER	67 Neutral	$93.87M	-3.23	8.75%	―	54.35%	70.17%
MG	66 Neutral	$388.36M	21.96	8.42%	―	-3.20%	60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NL	62 Neutral	$274.61M	28.38	2.54%	10.05%	5.51%	-83.40%
SNT	60 Neutral	$74.18M	―	―	―	―	―
EVLV	48 Neutral	$1.22B	-18.52	-51.67%	―	41.61%	-1.76%

NL Industries Corporate Events

NL Industries Declares Quarterly Dividend Announcement

On October 30, 2025, NL Industries announced a quarterly dividend of $0.09 per share, payable on December 16, 2025, to shareholders recorded by November 21, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.