Northern Technologies International (NTIC) AI Stock Analysis

• Market Cap: $78.21M
• Dividend Yield: 1.33%
• Average Volume (3M): 34.28K
• Price to Earnings (P/E): 73.8
• Beta (1Y): -0.03
• Revenue Growth: -0.97%
• EPS Growth: -99.67%
• Country: US
• Employees: 262
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.04
• Shares Outstanding: 9,492,001
• 10 Day Avg. Volume: 44,907
• 30 Day Avg. Volume: 34,278
• PEG Ratio: -39.93
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -46.52
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: 16.28
• 1Y Price Target: $13.00
• Price Target Upside: 57.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.26
• Revenue Forecast (FY): $90.20M

• Rating: 57 Neutral
• Price Target: $8.50 ▲(3.16% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is mainly constrained by weak profitability and deteriorated free cash flow, partially offset by a strong, low-leverage balance sheet. Technicals are bullish but overextended, and valuation is difficult to support with negative/near-zero earnings. The latest earnings call adds moderate support due to upbeat FY2026 outlook and notable contract/segment momentum, despite recent margin and profit pressure.

Positive Factors

Conservative Balance Sheet

Low leverage and a sizable equity base provide durable financial flexibility, lowering refinancing and solvency risk during profit volatility. This allows NTIC to fund JV activity, support working capital needs and invest in growth initiatives without immediate dependence on equity raises.

Record & Diversified Revenue Momentum

Record consolidated sales reflect broad-based demand across ZERUST Oil & Gas, NTIC China and Natur‑Tec, improving revenue diversity. A multi-year Brazil FPSO contract and stronger China and Natur‑Tec trends provide multi-period revenue visibility and scale that can support long-term margin recovery.

Resilient Gross Margins

Sustained mid-30s gross margins indicate durable product economics and pricing power from proprietary VCI and bioplastic offerings. Even with temporary supplier issues, healthy gross margins provide a structural buffer to absorb cost volatility and enable operating leverage as volumes and higher-margin mixes recover.

Negative Factors

Profitability Compression

Material earnings decline signals that revenue growth has not translated into sustained profits, reducing return on capital and limiting reinvestment potential. Persistent margin pressure would impair ability to rebuild retained earnings and fund strategic initiatives without eroding shareholder returns.

Deteriorated Cash Generation

Negative free cash flow and weakened operating cash flow constrain internal funding for working capital, JV support and capital investment. Unless cash generation recovers, NTIC may need to rely more on external financing or cut investments, slowing structural growth and margin improvement.

Reliance on Revolver Borrowings

Heavy use of the revolver increases liquidity and refinancing risk during periods of tight cash flow. While the facility maturity was extended, continued dependence on short-term borrowings signals constrained liquidity flexibility and could raise funding costs if operating performance stalls.

Northern Technologies International Business Overview & Revenue Model

Company Description

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company also provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. The company sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors and agents, manufacturer's sales representatives, strategic partners, and joint venture. Northern Technologies International Corporation was founded in 1970 and is headquartered in Circle Pines, Minnesota.

How the Company Makes Money

NTIC generates revenue primarily by commercializing its proprietary corrosion-inhibiting chemistries and materials solutions. A key revenue stream is the sale of ZERUST® corrosion prevention products (e.g., VCI packaging, films, papers, emitters, liquids, coatings, and related corrosion-management services) to industrial customers that need to prevent rust and corrosion across supply chains; revenue is recognized from product shipments and, where applicable, service-related arrangements. Another revenue stream comes from Natur-Tec® bio-based/compostable materials, where NTIC sells resins/compounds and finished bioplastic products used in packaging and other end markets. In addition to direct sales, NTIC earns income through its network of joint ventures and similar affiliated entities that manufacture and distribute NTIC technologies in various international markets; these arrangements typically contribute via product/technology commercialization in local regions and may provide NTIC with equity-method earnings and/or other returns depending on the structure of each affiliate. Significant contributors to earnings therefore include (1) industrial demand for corrosion protection consumables and solutions, (2) adoption of compostable/biobased material alternatives, and (3) performance and geographic reach of its global partner/joint-venture network. null

Northern Technologies International Financial Statement Overview

Summary

Mixed fundamentals: a conservatively levered balance sheet (low debt-to-equity) supports stability, but profitability has weakened to near breakeven and free cash flow is negative in TTM, indicating a meaningful deterioration in earnings quality and cash generation.

Income Statement

Revenue has been broadly stable with low growth in TTM (Trailing-Twelve-Months) and a slight decline in the latest annual period, but profitability has weakened materially. Gross margin remains solid (~37% in TTM), yet earnings have compressed sharply: net income is essentially breakeven to slightly negative in TTM and the latest annual period after a much stronger prior year. EBITDA margin is still positive but down meaningfully versus 2024, pointing to higher operating costs and a tougher profit profile.

Balance Sheet

The balance sheet looks conservatively levered, with low debt relative to equity (debt-to-equity around 0.16 in TTM) and a sizable equity base. Total debt is modest in absolute terms and leverage has not spiked despite weaker profitability. The key weakness is returns: return on equity has fallen to roughly zero/negative in TTM, signaling that the company is not currently generating attractive earnings on its capital base.

Cash Flow

Cash generation has deteriorated. Operating cash flow is very low in TTM versus recent history, and free cash flow is negative in TTM, indicating cash burn after investment needs. Prior years showed healthy positive free cash flow (notably 2023–2024), so the recent step-down suggests either working-capital pressure, lower underlying profitability, or heavier spending. The main positive is that operating cash flow is still positive, but the overall cash-flow trajectory is currently unfavorable.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	86.20M	84.23M	85.06M	79.90M	74.16M	56.49M
Gross Profit	31.90M	31.68M	33.79M	27.80M	23.07M	19.57M
EBITDA	5.29M	5.39M	9.74M	7.68M	10.72M	9.58M
Net Income	-305.65K	17.62K	5.41M	2.91M	6.32M	6.28M
Balance Sheet
Total Assets	104.03M	102.75M	94.68M	89.34M	86.19M	74.37M
Cash, Cash Equivalents and Short-Term Investments	6.39M	7.25M	4.95M	5.41M	5.34M	7.69M
Total Debt	12.96M	13.15M	7.54M	6.79M	6.46M	376.44K
Total Liabilities	27.35M	26.03M	19.50M	18.65M	18.95M	8.62M
Stockholders Equity	72.36M	72.15M	71.19M	66.36M	63.60M	62.37M
Cash Flow
Free Cash Flow	-3.12M	-1.51M	2.46M	2.18M	-557.75K	-2.75M
Operating Cash Flow	389.80K	2.44M	5.88M	5.54M	1.15M	2.89M
Investing Cash Flow	-3.49M	-3.93M	-3.42M	-3.34M	-7.11M	-103.32K
Financing Cash Flow	3.87M	3.86M	-2.96M	-2.05M	3.19M	-1.52M

Northern Technologies International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIC, the sentiment is Negative. The current price of 8.24 is below the 20-day moving average (MA) of 8.71, below the 50-day MA of 8.91, and above the 200-day MA of 7.99, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 0.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTIC.

Northern Technologies International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$70.82M	-60.48	4.98%	―	0.18%	-54.25%
ALTO	60 Neutral	$354.78M	16.09	6.00%	―	-8.00%	-35.86%
NTIC	57 Neutral	$78.21M	73.75	0.02%	1.33%	-0.97%	-99.67%
LOOP	56 Neutral	$65.26M	-4.53	71.64%	―	11013.00%	39.85%
SNES	45 Neutral	$10.18M	-1.55	-77.79%	―	39.37%	69.81%

Northern Technologies International Corporate Events

Northern Technologies Shareholders Approve Directors and Governance Items

At its Annual Meeting of Stockholders held on January 16, 2026, Northern Technologies International Corporation reported that stockholders representing 66.07% of the company’s outstanding common shares as of the November 18, 2025 record date were present in person or by proxy, establishing a quorum for voting. All eight director nominees were elected for new terms, executive compensation was approved on an advisory basis, stockholders supported holding future say-on-pay votes annually, and the appointment of Baker Tilly US, LLP as independent registered public accounting firm for the fiscal year ending August 31, 2026 was ratified, reinforcing continuity in the company’s governance, compensation oversight, and audit arrangements.

The most recent analyst rating on (NTIC) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Northern Technologies International stock, see the NTIC Stock Forecast page.

Northern Technologies Extends JPMorgan Credit Facility Maturity

On December 18, 2025, Northern Technologies International Corporation amended its existing $10 million line of credit note with JPMorgan Chase Bank, N.A., extending the maturity date from January 5, 2026 to February 5, 2027 while leaving all other material terms unchanged. The extension provides NTIC with an additional year of committed financing capacity under the same conditions, supporting the company’s liquidity and financial flexibility without altering the original borrowing structure.

The most recent analyst rating on (NTIC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Northern Technologies International stock, see the NTIC Stock Forecast page.