Northern Technologies International (NTIC) AI Stock Analysis

• Market Cap: $88.66M
• Dividend Yield: 1.33%
• Average Volume (3M): 34.28K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• 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: 0.86
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 14.37
• 1Y Price Target: $13.00
• Price Target Upside: 39.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $10.00 ▲(7.07% Upside)

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

A very low debt-to-equity ratio and healthy equity base give the company durable financial flexibility. This conservative capital structure supports investment in operations, cushions cyclicality in industrial end markets, and reduces solvency risk over the next several quarters.

Relatively strong gross margins

Sustained gross margins near the high 30s reflect pricing power and differentiated corrosion-protection technologies. Strong gross margin provides a structural buffer to absorb SG&A and R&D investments and underpins the path to improved operating leverage as sales scale.

Contracted and diversified revenue momentum

Record consolidated sales and a multi-year ZERUST Brazil FPSO contract create predictable medium-term revenue streams. Coupled with growth in NTIC China and Natur‑Tec, these contracted and geographic revenue drivers reduce single-market concentration and support durable top-line visibility.

Negative Factors

Weak cash generation

Very weak operating cash conversion limits the firm's ability to internally fund working capital, debt reduction, and investments. Over months this raises reliance on external financing and can constrain capacity to capitalize on commercial wins or sustain the dividend if operating cash does not improve.

Low net profitability and recent earnings decline

Despite revenue gains, extremely low net margins and a large YoY profit drop indicate structural cost, timing, or mix pressures. Persistent low bottom-line returns weaken ROE and limit retained earnings available for reinvestment, making margin recovery essential for sustainable growth.

Reliance on revolver and tightened liquidity

Material use of the revolving credit line and modest cash balances create a structural liquidity dependency. Even with an extended facility maturity, reliance on short-term borrowings increases refinancing and interest risk and reduces financial flexibility during slower cash cycles or market stress.

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 through multiple key streams, including the sale of its proprietary corrosion protection products, licensing of its patented technologies, and providing technical support and consulting services to clients across various industries. A significant portion of the company's income is derived from long-term contracts with industrial clients that require ongoing corrosion management solutions. Additionally, NTIC has established partnerships with major companies in the automotive and manufacturing sectors, which help expand its market reach and enhance brand visibility. The company also benefits from international sales, as its technologies are applicable in various global markets, further contributing to its earnings.

Northern Technologies International Financial Statement Overview

Summary

Mixed fundamentals: a conservatively levered balance sheet (low debt-to-equity) is a clear strength, but profitability has weakened toward breakeven and cash generation has deteriorated with negative free cash flow in the TTM, which materially lowers the financial quality score.

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

Northern Technologies International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIC, the sentiment is Positive. The current price of 9.34 is above the 20-day moving average (MA) of 8.38, above the 50-day MA of 7.95, and above the 200-day MA of 7.74, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$78.31M	42.43	5.08%	―	0.18%	-54.25%
ALTO	59 Neutral	$208.83M	-3.87	-20.64%	―	-8.00%	-35.86%
NTIC	57 Neutral	$88.66M	-277.15	0.02%	1.33%	-0.97%	-99.67%
SNES	49 Neutral	$10.84M	-0.57	-77.79%	―	39.37%	69.81%
LOOP	48 Neutral	$55.59M	-20.50	―	―	11013.00%	39.85%
TSE	45 Neutral	$17.89M	-0.04	―	8.42%	-11.20%	17.76%

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.