Northern Technologies International (NTIC) AI Stock Analysis

• Market Cap: $72.91M
• Dividend Yield: 1.33%
• Average Volume (3M): 34.28K
• Price to Earnings (P/E): 4272.2
• Beta (1Y): -0.02
• Revenue Growth: -0.97%
• EPS Growth: -99.67%
• Country: US
• Employees: 262
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.06
• Shares Outstanding: 9,480,689
• 10 Day Avg. Volume: 44,907
• 30 Day Avg. Volume: 34,278
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00083
• P/FCF Ratio: 0.08
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: $13.00
• Price Target Upside: 72.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $8.00 ▲(6.38% Upside)

Northern Technologies International's overall stock score reflects a balance of mixed financial performance and valuation concerns, with some positive technical indicators and strategic expansions. The extension of the credit facility provides additional financial flexibility, but challenges in profitability and cash flow remain significant.

Positive Factors

Strategic Expansion

The new contract in Brazil indicates strategic growth in a key market, potentially boosting revenue and enhancing NTIC's market position in the region.

Improved Performance in China

Strong sales growth in China reflects successful market penetration and potential for sustained revenue increases in a significant global market.

Financial Flexibility

The credit facility extension enhances NTIC's liquidity and financial flexibility, supporting long-term operational stability and strategic investments.

Negative Factors

Decreased Sales

The decline in net sales suggests potential challenges in maintaining market demand, which could impact revenue growth and profitability.

High Effective Tax Rate

A significantly higher tax rate reduces net income and cash flow, potentially limiting reinvestment capabilities and affecting financial health.

Net Loss

The net loss indicates operational challenges and inefficiencies, which could hinder future profitability and require strategic adjustments.

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

The financial performance is mixed. While revenue growth is strong, profitability is low with a net profit margin of 1.17% and negative free cash flow growth. The balance sheet is stable with low leverage, but cash flow management needs improvement.

Income Statement

The income statement shows a mixed performance. The gross profit margin is relatively strong at 37.6%, indicating efficient production. However, the net profit margin is low at 1.17%, suggesting high expenses or inefficiencies elsewhere. Revenue growth is exceptionally high, but this is likely due to a one-time event or anomaly. EBIT and EBITDA margins are low, indicating limited operational profitability.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.16, indicating conservative leverage. Return on equity is modest at 1.29%, suggesting limited profitability from equity. The equity ratio is healthy, showing a strong equity base relative to assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals challenges. Free cash flow growth is negative, indicating potential issues in generating cash. Operating cash flow to net income ratio is low at 0.10, suggesting weak cash generation relative to reported earnings. The free cash flow to net income ratio is moderate, but overall cash flow performance is concerning.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	85.27M	―	84.23M	85.06M	79.90M	74.16M
Gross Profit	33.44M	―	31.68M	33.79M	27.80M	23.07M
EBITDA	7.54M	―	5.39M	9.74M	7.68M	10.72M
Net Income	2.95M	―	17.62K	5.41M	2.91M	6.32M
Balance Sheet
Total Assets	99.30M	―	102.75M	94.68M	89.34M	86.19M
Cash, Cash Equivalents and Short-Term Investments	6.77M	―	7.25M	4.95M	5.41M	5.34M
Total Debt	10.51M	―	13.15M	7.54M	6.79M	6.46M
Total Liabilities	22.73M	―	26.03M	19.50M	18.65M	18.95M
Stockholders Equity	72.36M	―	72.15M	71.19M	66.36M	63.60M
Cash Flow
Free Cash Flow	-2.11M	―	-1.51M	2.46M	2.18M	-557.75K
Operating Cash Flow	2.11M	―	2.44M	5.88M	5.54M	1.15M
Investing Cash Flow	-4.20M	―	-3.93M	-3.42M	-3.34M	-7.11M
Financing Cash Flow	3.09M	―	3.86M	-2.96M	-2.05M	3.19M

Northern Technologies International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 7.52 is below the 20-day moving average (MA) of 7.53, below the 50-day MA of 7.66, and below the 200-day MA of 7.93, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, 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	$90.24M	48.90	5.08%	―	0.18%	-54.25%
ALTO	59 Neutral	$238.22M	-4.42	-20.64%	―	-8.00%	-35.86%
NTIC	50 Neutral	$72.91M	4,272.22	0.02%	1.33%	-0.97%	-99.67%
SNES	49 Neutral	$12.08M	-0.64	-77.79%	―	39.37%	69.81%
LOOP	47 Neutral	$47.56M	-4.04	―	―	11013.00%	39.85%
TSE	41 Neutral	$19.90M	-0.05	―	8.42%	-11.20%	17.76%

Northern Technologies International Corporate Events

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.