NL Industries (NL) AI Stock Analysis

• Market Cap: $301.39M
• Dividend Yield: 5.35%
• Average Volume (3M): 55.87K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.69
• Revenue Growth: -6.25%
• EPS Growth: 442.27%
• Country: US
• Employees: 3,034
• Sector: Industrials
• Sector Strength: 86
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 48,847,733
• 10 Day Avg. Volume: 34,058
• 30 Day Avg. Volume: 55,871
• PEG Ratio: -0.56
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.59
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 9.65
• Enterprise Value/Ebitda: 42.85
• 1Y Price Target: $6.00
• Price Target Upside: -2.76% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $7.50 ▲(21.56%Upside)

NL Industries has a solid financial foundation with a strong balance sheet and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, the stock is experiencing bearish technical momentum, and recent revenue declines pose a risk to future performance. Corporate events suggest a commitment to shareholder value, but the recent analyst 'Sell' rating highlights potential short-term challenges.

NL Industries Business Overview & Revenue Model

Company Description

NL 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 Money

NL Industries makes money primarily through the production and sale of titanium dioxide pigments, which are used in a variety of applications, including coatings, plastics, paper, and other industrial products. The company generates revenue by selling these products to manufacturers who incorporate them into their own goods. Additionally, NL Industries may also derive income from its investments and interests in other companies, as well as from strategic partnerships that enhance its market reach and product offerings.

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.

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
EBITDA	107.84M	-1.10M	44.65M	66.61M	18.85M
Net Income	67.23M	-2.31M	33.84M	51.19M	14.68M
Balance Sheet
Total Assets	594.64M	576.66M	609.87M	596.15M	548.15M
Cash, Cash Equivalents and Short-Term Investments	163.15M	164.67M	139.03M	147.00M	137.04M
Total Debt	500.00K	500.00K	500.00K	500.00K	500.00K
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: Negative
• Last Price: 6.17
• 50DMA: Negative
• 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 Negative. The current price of 6.17 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 6.75, and below the 200-day MA of 7.37, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 40.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$285.30M	15.88	11.35%	13.45%	-9.51%	-26.61%
NL	72 Outperform	$301.39M	4.94	15.93%	5.35%	-6.25%	442.27%
MG	66 Neutral	$248.76M	16.89	7.70%	―	-2.09%	―
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%

NL Industries Corporate Events

NL Industries Expands Board and Declares Dividend

On May 15, 2025, NL Industries, Inc. held its annual shareholder meeting where shareholders elected seven directors and approved executive compensation on a nonbinding advisory basis. The board also expanded from seven to eight members, appointing Dr. R. Gerald Turner to the new position and the audit committee. Additionally, the company declared a quarterly dividend of $0.09 per share, payable on June 24, 2025.

The most recent analyst rating on (NL) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on NL Industries stock, see the NL Stock Forecast page.