NL Industries (NL) AI Stock Analysis

• Market Cap: $303.93M
• Dividend Yield: 9%
• Average Volume (3M): 25.98K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.75
• Revenue Growth: -2.97%
• EPS Growth: 141.19%
• Country: US
• Employees: 3,034
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 48,862,736
• 10 Day Avg. Volume: 25,611
• 30 Day Avg. Volume: 25,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 2.78
• 1Y Price Target: $7.00
• Price Target Upside: 15.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $7.00 ▲(15.13% Upside)

NL Industries' strong valuation and financial performance are offset by liquidity challenges and bearish technical indicators. The stock's low P/E ratio and high dividend yield make it attractive, but investors should be cautious of the negative cash flow situation.

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 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 demonstrates strong profitability with a high net profit margin and a stable financial structure with low leverage. However, liquidity challenges due to negative cash flows are a concern.

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	152.72M	145.94M	161.29M	166.60M	140.80M	114.50M
Gross Profit	45.58M	41.36M	49.22M	48.80M	42.70M	32.80M
EBITDA	72.19M	107.84M	-1.10M	44.65M	66.61M	18.85M
Net Income	53.58M	67.23M	-2.31M	33.84M	51.19M	14.68M
Balance Sheet
Total Assets	523.70M	578.26M	576.66M	609.87M	596.15M	548.15M
Cash, Cash Equivalents and Short-Term Investments	132.14M	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	106.69M	162.35M	184.90M	207.12M	211.18M	212.80M
Stockholders Equity	397.58M	396.90M	369.81M	382.15M	362.47M	311.88M
Cash Flow
Free Cash Flow	-39.76M	24.14M	35.87M	23.24M	13.52M	17.28M
Operating Cash Flow	-36.89M	25.57M	37.00M	26.93M	17.61M	19.02M
Investing Cash Flow	14.44M	58.87M	22.10M	-67.87M	6.71M	-3.14M
Financing Cash Flow	-42.62M	-41.63M	-15.23M	-36.80M	-14.35M	-8.48M

NL Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.08 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.18, and below the 200-day MA of 6.85, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, 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	285.89M	15.39	0.00%	9.48%	-2.96%	-11.81%
NL	72 Outperform	$303.93M	5.67	13.89%	9.00%	-2.97%	141.19%
MG	67 Neutral	301.19M	26.41	5.29%	―	-4.51%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NL Industries Corporate Events

NL Industries Declares Special and Quarterly Dividends

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.