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Nl Industries, Inc. (NL)
:NL
US Market

NL Industries (NL) AI Stock Analysis

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NL Industries

(NYSE:NL)

Rating:67Neutral
Price Target:
$7.50
▲(10.78%Upside)
The overall stock score for NL Industries is 67, primarily driven by a strong valuation and solid financial performance. The attractive dividend yield and low P/E ratio highlight potential undervaluation. However, technical indicators reflect bearish momentum, and recent analyst sentiment is negative, presenting risks. The positive corporate events provide some support, but revenue growth challenges remain.

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 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 shows strong profitability with improved margins despite revenue challenges. A robust balance sheet with low leverage enhances stability, although a decrease in operating cash flow should be monitored.
Income Statement
70
Positive
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
85
Very Positive
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
75
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
148.24M145.94M161.29M166.60M140.80M114.50M
Gross Profit
43.86M41.36M49.22M48.80M42.70M32.80M
EBIT
40.97M37.88M14.13M44.32M41.96M19.67M
EBITDA
73.18M107.84M-1.10M44.65M66.61M18.85M
Net Income Common Stockholders
61.06M67.23M-2.31M33.84M51.19M14.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.00163.15M164.67M139.03M147.00M137.04M
Total Assets
0.00594.64M576.66M609.87M596.15M548.15M
Total Debt
0.00500.00K500.00K500.00K500.00K500.00K
Net Debt
0.00-162.65M-111.02M-68.37M-146.50M-136.54M
Total Liabilities
103.19M162.35M184.90M207.12M211.18M212.80M
Stockholders Equity
397.64M396.90M369.81M382.15M362.47M311.88M
Cash FlowFree Cash Flow
-30.59M24.14M35.87M23.24M13.52M17.28M
Operating Cash Flow
-28.64M25.57M37.00M26.93M17.61M19.02M
Investing Cash Flow
33.56M58.87M22.10M-67.87M6.71M-3.14M
Financing Cash Flow
-42.13M-41.63M-15.23M-36.80M-14.35M-8.48M

NL Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.77
Price Trends
50DMA
7.66
Negative
100DMA
7.46
Negative
200DMA
7.41
Negative
Market Momentum
MACD
-0.23
Positive
RSI
38.58
Neutral
STOCH
47.18
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 6.77 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 7.66, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 47.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CICIX
73
Outperform
$286.16M15.9311.35%5.17%-9.51%-26.61%
NLNL
67
Neutral
$330.70M5.4215.93%5.32%-6.25%442.27%
66
Neutral
$4.47B12.215.40%3.65%4.14%-12.00%
MGMG
56
Neutral
$240.30M16.327.70%-2.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL
NL Industries
6.77
1.01
17.53%
CIX
Compx International
23.23
3.46
17.50%
MG
Mistras Group
7.67
-0.36
-4.48%

NL Industries Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
NL Industries Expands Board and Declares Dividend
Positive
May 15, 2025

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.

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.