Northern Technologies International (NTIC)
NASDAQ:NTIC
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Northern Technologies International
(NASDAQ:NTIC)
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Rating:51Neutral
Price Target:
$8.00
▲(0.00% Upside)
Action:ReiteratedDate:04/10/26
The score is held back primarily by weak recent profitability and negative operating/free cash flow despite a conservatively levered balance sheet. Technicals add pressure with weak momentum, while valuation is unattractive due to a very high P/E and minimal yield. Offsetting these, the latest earnings call was moderately positive with guidance for stronger growth and improved profitability later in FY2026, but it hinges on successful margin and cash-flow execution.
Positive Factors
Low leverage
Northern's low leverage and a conservatively sized debt load provide durable financial flexibility. With modest debt relative to equity, the company can fund working-capital swings, complete SAP and facility investments, and pursue contract fulfillment while retaining capacity to reduce debt per management plans.
Negative Factors
Weak cash generation
Sustained negative operating and free cash flow constrains the company's ability to self-fund growth, service capital investments and reduce revolver reliance. Until OCF turns consistently positive, management may need external liquidity or to cut investments, raising execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
Northern's low leverage and a conservatively sized debt load provide durable financial flexibility. With modest debt relative to equity, the company can fund working-capital swings, complete SAP and facility investments, and pursue contract fulfillment while retaining capacity to reduce debt per management plans.
Read all positive factors
Northern Technologies International (NTIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.94M
Dividend Yield1.33%
Average Volume (3M)34.28K
Price to Earnings (P/E)―
Beta (1Y)-0.04
Revenue Growth-0.97%
EPS Growth-99.67%
CountryUS
Employees262
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.01
Shares Outstanding9,492,001
10 Day Avg. Volume44,907
30 Day Avg. Volume34,278
Financial Highlights & Ratios
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 Cap1.11
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit2.55
Enterprise Value/Ebitda14.27
Forecast
1Y Price Target
$13.00Price Target Upside62.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)$92.00M
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 pr...
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, ...
Northern Technologies International Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q2-2026)
| Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line momentum across multiple segments—most notably a record quarter for ZERUST Oil & Gas (+72.1%), robust JV and China sales (+18.6% and +18.5%), and improvement in non‑GAAP results—supported by strategic investments and a sizable multi-year contract. However, near-term profitability and cash generation remain constrained by a small GAAP loss, Natur‑Tec margin volatility, supplier/input‑price inflation, recent capital spending, and lower historical JV cash contributions. Management expects operating leverage, improved gross margins, and debt reduction to drive improved profitability in H2 FY2026.Positive Updates
Consolidated Sales Growth
Total consolidated net sales increased 15.3% year-over-year to $22.0 million for Q2 FY2026, the strongest YoY growth rate since fiscal 2022.
Negative Updates
GAAP Earnings Decline
Reported GAAP net loss of $35,000 ($0.00 per share) in Q2 FY2026 versus GAAP net income of $434,000 ($0.04 per diluted share) in Q2 FY2025, driven in part by the absence of a one-time $1.1M other income item recognized in the prior-year quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Sales Growth
Total consolidated net sales increased 15.3% year-over-year to $22.0 million for Q2 FY2026, the strongest YoY growth rate since fiscal 2022.
Read all positive updates
Company Guidance
Management guided to continued sales growth and improved profitability for fiscal 2026, saying they expect revenue to grow faster than operating expenses, gross margin to improve sequentially, and operating leverage, disciplined expense management, working capital efficiencies and debt reduction to drive stronger results. Key metrics cited: Q2 consolidated net sales $22.0M (up 15.3% YoY), gross profit margin 35.7% (vs 35.6% prior), total operating expenses $9.5M (up 7.7%) or 43.2% of sales (vs 46.2% prior); ZERUST Oil & Gas Q2 sales a record $2.7M (up 72.1%) including a ~$13.0M, three‑year offshore contract ramping this year through 2028; Natur‑Tec Q2 sales $5.4M (up 8.1%); Northern Technologies China Q2 sales $4.4M (up 18.5%); joint‑venture sales $23.5M (up 18.6%) with JV operating income up 19.8%. Financial priorities to support guidance include improving cash flow and reducing debt ($14.3M outstanding, $11.3M revolver borrowings), optimizing working capital (working capital $20.2M; cash $5.6M vs $7.3M at 8/31/25), and converting the top‑line momentum into higher non‑GAAP adjusted net income (Q2 non‑GAAP $70k, $0.01/share) with materially stronger Q3 and Q4 expected.Northern Technologies International Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
74
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.13M | 84.23M | 85.06M | 79.90M | 74.16M | 56.49M |
| Gross Profit | 32.96M | 31.68M | 33.79M | 27.80M | 23.07M | 19.57M |
| EBITDA | 5.89M | 5.39M | 9.74M | 7.68M | 10.72M | 9.58M |
| Net Income | -775.29K | 17.62K | 5.41M | 2.91M | 6.32M | 6.28M |
Balance Sheet | ||||||
| Total Assets | 104.90M | 102.75M | 94.68M | 89.34M | 86.19M | 74.37M |
| Cash, Cash Equivalents and Short-Term Investments | 6.47M | 7.25M | 4.95M | 5.41M | 5.34M | 7.69M |
| Total Debt | 14.66M | 13.15M | 7.54M | 6.79M | 6.46M | 376.44K |
| Total Liabilities | 27.17M | 26.03M | 19.50M | 18.65M | 18.95M | 8.62M |
| Stockholders Equity | 73.29M | 72.15M | 71.19M | 66.36M | 63.60M | 62.37M |
Cash Flow | ||||||
| Free Cash Flow | -4.49M | -1.51M | 2.46M | 2.18M | -557.75K | -2.75M |
| Operating Cash Flow | -2.14M | 2.44M | 5.88M | 5.54M | 1.15M | 2.89M |
| Investing Cash Flow | -2.39M | -3.93M | -3.42M | -3.34M | -7.11M | -103.32K |
| Financing Cash Flow | 5.74M | 3.86M | -2.96M | -2.05M | 3.19M | -1.52M |
Northern Technologies International Technical Analysis
Negative
8.00
Price Trends
8.62
Negative
8.36
Negative
8.06
Negative
Market Momentum
-0.18
Positive
38.56
Neutral
11.33
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 is below the 20-day moving average (MA) of 8.27, below the 50-day MA of 8.62, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 11.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTIC.
Northern Technologies International Risk Analysis
Northern Technologies International disclosed 53 risk factors in its most recent earnings report. Northern Technologies International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northern Technologies International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $68.91M | -60.48 | 4.98% | ― | 0.18% | -54.25% | |
60 Neutral | $370.62M | 16.09 | 6.00% | ― | -8.00% | -35.86% | |
53 Neutral | $66.22M | -4.53 | 71.64% | ― | 11013.00% | 39.85% | |
51 Neutral | $75.94M | -597.73 | 0.02% | 1.33% | -0.97% | -99.67% | |
45 Neutral | $8.49M | -10.98 | -77.79% | ― | 39.37% | 69.81% |
* Basic Materials Sector Average
NTIC
Northern Technologies International
8.00
0.79
10.90%
FSI
Flexible Solutions International
5.41
1.64
43.50%
ALTO
Alto Ingredients
4.80
3.91
439.98%
SNES
SenesTech
1.60
-0.10
-5.88%
LOOP
Loop Industries
1.37
0.33
31.73%
Northern Technologies International Corporate Events
Executive/Board ChangesShareholder Meetings
Northern Technologies Shareholders Approve Directors and Governance Items
Positive
Jan 16, 2026
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...
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.