NPK International (NPKI) AI Stock Analysis

• Market Cap: $907.65M
• Dividend Yield: N/A
• Average Volume (3M): 839.16K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.01
• Revenue Growth: -67.14%
• EPS Growth: 115.81%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.11
• Shares Outstanding: 84,432,770
• 10 Day Avg. Volume: 617,681
• 30 Day Avg. Volume: 839,162
• PEG Ratio: <0.01
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 3.03
• P/FCF Ratio: -122.76
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: $12.13
• Price Target Upside: 12.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: $9.50 ▼(-11.63% Downside)

NPK International's overall stock score is driven by a strong earnings call performance and positive technical indicators, despite significant financial challenges. The company's strategic focus on rental revenue growth and geographic expansion supports a positive outlook. However, profitability issues and overbought technical signals warrant caution.

Positive Factors

Record Rental Revenue Growth

The significant growth in rental revenue indicates strong demand and effective market penetration, supporting long-term revenue stability and expansion.

Geographic Expansion

Geographic expansion enhances market reach and competitiveness, positioning NPKI for sustained growth and increased market share.

Strong Cash Flow

Robust cash flow generation provides financial flexibility for strategic investments and debt management, bolstering long-term financial health.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges, limiting the company's ability to fund operations and growth initiatives without external financing.

Gross Margin Pressure

Declining gross margins can impact profitability, suggesting potential cost management issues that could affect long-term financial performance.

Increased SG&A Expenses

Rising SG&A expenses may pressure net margins, indicating inefficiencies or increased operational costs that could hinder profitability.

NPK International Business Overview & Revenue Model

Company Description

NPK International Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was formerly known as Newpark Resources, Inc. and changed its name to NPK International Inc. in December 2024. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

NPK International generates revenue primarily through the sale of its fertilizer products, which include standard NPK blends, specialty fertilizers, and organic options. The company has established key revenue streams through direct sales to agricultural businesses, partnerships with distributors, and contracts with governmental agricultural programs. Additionally, NPKI offers consulting services that provide agronomic expertise, further contributing to its earnings. Significant partnerships with agricultural cooperatives and research institutions enhance its market presence and facilitate access to new markets, driving overall profitability.

NPK International Financial Statement Overview

Summary

NPK International faces significant financial challenges, particularly in terms of profitability and revenue growth. While the company maintains a strong gross profit margin and low leverage, the substantial net losses and negative free cash flow are concerning. The balance sheet remains relatively stable with a strong equity position, but the negative return on equity highlights ongoing profitability issues.

Income Statement

NPK International's income statement reveals significant challenges. The company has experienced a drastic decline in revenue, as evidenced by a TTM revenue growth rate of -97.89%. Despite a strong gross profit margin of 59.97% in the TTM, the net profit margin is deeply negative at -130.39%, indicating substantial losses. The EBIT and EBITDA margins are relatively healthy at 29.27% and 52.18%, respectively, but the overall profitability is severely impacted by the net losses.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.0567, suggesting conservative leverage. However, the return on equity is negative at -45.25%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at 83.55%, indicating a strong equity position relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis highlights mixed results. The operating cash flow to net income ratio is 0.87, showing decent cash generation relative to net income. However, the free cash flow is negative, and the free cash flow to net income ratio is -0.13, indicating challenges in generating positive free cash flow. The free cash flow growth rate is positive at 261.13%, but this is from a negative base, which limits its significance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.74M	217.49M	207.65M	192.99M	614.78M	492.63M
Gross Profit	85.09M	77.13M	72.55M	59.99M	85.23M	19.37M
EBITDA	63.19M	59.01M	55.20M	43.87M	32.80M	-36.28M
Net Income	-146.91M	-150.26M	14.52M	-20.83M	-25.53M	-80.70M
Balance Sheet
Total Assets	393.68M	393.68M	642.34M	714.88M	752.89M	709.19M
Cash, Cash Equivalents and Short-Term Investments	26.01M	17.76M	789.00K	23.18M	24.09M	24.20M
Total Debt	19.31M	18.62M	72.74M	133.93M	137.16M	112.23M
Total Liabilities	64.85M	67.19M	226.97M	291.85M	290.50M	221.16M
Stockholders Equity	328.83M	326.50M	415.36M	423.03M	462.39M	488.03M
Cash Flow
Free Cash Flow	-16.66M	-5.36M	70.77M	-53.29M	-24.81M	40.00M
Operating Cash Flow	28.11M	38.17M	100.00M	-25.02M	-3.01M	55.79M
Investing Cash Flow	24.49M	8.26M	-5.69M	46.23M	-17.48M	-3.40M
Financing Cash Flow	-62.89M	-66.88M	-81.05M	-24.93M	21.41M	-77.94M

NPK International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPKI, the sentiment is Positive. The current price of 10.75 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 9.59, and above the 200-day MA of 7.77, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPKI.

NPK International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTI	82 Outperform	677.06M	5.87	39.56%	―	-3.23%	1031.00%
NESR	77 Outperform	1.02B	13.91	8.40%	―	0.00%	0.00%
RNGR	74 Outperform	308.87M	14.60	8.09%	1.63%	-3.22%	55.46%
CLB	66 Neutral	585.24M	20.29	11.08%	0.32%	0.70%	5.97%
NPKI	64 Neutral	$907.65M	19.15	11.14%	―	-67.14%	115.81%
PUMP	48 Neutral	495.93M	-3.27	-16.89%	―	-10.91%	-580.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

NPK International Corporate Events

Donald Young Resigns from NPK International Board

Donald Young has resigned from the Board of Directors of NPK International Inc., effective August 19, 2025, to focus on his personal business ventures. His departure, which was amicable and not due to any disagreements with the company, will result in the reduction of the board size from eight to seven members.

NPK International Reports Strong Q2 2025 Financial Growth

NPK International Inc. reported its financial highlights for the trailing twelve months ending in the second quarter of 2025, showing a 7% year-over-year revenue growth and a 15% increase in adjusted EBITDA. The company completed the sale of its Fluids Systems segment on September 13, 2024, and now focuses on its core business of providing worksite access solutions, with a strong emphasis on safety, service quality, and environmental sustainability. This strategic shift is expected to enhance NPK’s market positioning and operational efficiency, benefiting stakeholders through improved financial performance and growth prospects.

NPK International Secures $150M Credit Facility

On June 20, 2025, NPK International Inc. entered into a new credit agreement with Bank of America, N.A., establishing a $150 million senior secured revolving credit facility. This agreement replaces a previous credit agreement from May 2022, and it includes provisions for potential expansion and secures the facility with a first priority lien on the company’s personal property.