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Northern Technologies International (NTIC)
NASDAQ:NTIC
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Northern Technologies International
(NASDAQ:NTIC)
Rating:65Neutral
Price Target:
$8.50
▲(15.49% Upside)
Northern Technologies International (NTIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.71M
Dividend Yield2.14%
Average Volume (3M)61.71K
Price to Earnings (P/E)25.9
Beta (1Y)0.11
Revenue Growth3.46%
EPS Growth-34.80%
CountryUS
Employees262
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.02
Shares Outstanding9,474,363
10 Day Avg. Volume21,467
30 Day Avg. Volume61,714
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda12.46
Forecast
1Y Price Target
$8.00Price Target Upside8.70% Upside
Rating ConsensusHold
Number of Analyst Covering0
Northern Technologies International Business Overview & Revenue Model
Company DescriptionNorthern Technologies International Corporation (NTIC) is a global leader in providing industrial packaging solutions, primarily focusing on corrosion prevention and management. The company operates in sectors such as automotive, electronics, and oil and gas, offering products like Zerust corrosion-inhibiting packaging and Natur-Tec bioplastics. NTIC is renowned for its innovative approach to sustainable packaging solutions, catering to a diverse clientele across multiple industries.
How the Company Makes MoneyNTIC generates revenue through the sale of its proprietary corrosion prevention solutions, particularly Zerust products, which include packaging films, bags, and other materials designed to protect metal products from rust and corrosion. The company also earns from its Natur-Tec line of biodegradable and compostable plastics, serving the growing demand for environmentally friendly alternatives in packaging and consumer products. NTIC’s strategic partnerships and joint ventures, such as those in emerging markets, further enhance its revenue streams by expanding its global reach and market penetration. Additionally, the company earns licensing fees from its technologies, contributing to its overall financial performance.
Northern Technologies International Earnings Call Summary
Earnings Call Date:Jul 10, 2025
(Q3-2025)
| % Change Since: -9.36%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there was notable growth in consolidated net sales and significant progress in the Chinese market, the decline in joint venture sales and increased operating expenses negatively impacted net income. The company remains optimistic about future growth, particularly in the oil and gas sector and the Chinese market.Q3-2025 Updates
Positive Updates
Consolidated Net Sales Growth
Consolidated net sales increased by 4% to $21,500,000 compared to the same quarter last fiscal year, demonstrating growth in spite of economic uncertainties.
Strong Performance in China
NTSC China experienced a 27.4% increase in net sales, reaching $4,500,000, marking the second-highest quarterly revenue since becoming a wholly-owned subsidiary in 2015.
Gross Margin Improvement
Gross margin increased to 38.4%, up from 38.2% the previous year, reflecting improved profitability and product mix.
ZERUST Oil and Gas Trailing Twelve-Month Sales Growth
ZERUST Oil and Gas sales grew by 15.4% over the trailing twelve months, reaching $8,600,000 compared to $7,400,000 in the prior period.
Negative Updates
Decline in Joint Venture Sales
Joint venture sales decreased by 12.9% year-over-year to $2,300,000, impacted by high energy prices and economic pressures in Europe.
Increased Operating Expenses
Operating expenses rose by 7.6% to $9,700,000, driven by higher personnel costs and strategic investments, resulting in a lower net income of $122,000 compared to $977,000 the previous year.
Decrease in Natur Tec Sales
Natur Tec sales decreased by 1.2% year-over-year, despite a sequential increase of 16.5% from the previous quarter.
Lower Net Income
Reported net income was $122,000 or 1¢ per share, down from $977,000 or $0.10 per share in the previous year, indicating a decline in profitability.
Company Guidance
During the NTIC third quarter fiscal 2025 earnings call, the company reported a 4% year-over-year increase in consolidated net sales, reaching $21.5 million, with a gross margin of 38.4%. Sales for Xero's Industrial grew by 7.1%, but ZERUST Oil and Gas and Natur Tec saw declines of 5.3% and 1.2%, respectively. Joint venture net sales decreased by 12.9% to $2.3 million, primarily due to high energy prices and economic pressures in Europe. NTIC China reported a significant 27.4% increase in net sales, totaling $4.5 million. Operating expenses rose by 7.6% to $9.7 million, partly due to strategic investments in the oil and gas sector, where trailing twelve-month sales increased by 15.4% to $8.6 million. Despite challenges, NTIC remains optimistic about the fourth quarter and fiscal 2026, with a focus on reducing debt and enhancing profitability. The company declared a quarterly cash dividend of $0.01 per share and highlighted ongoing opportunities in the Chinese and bioplastics markets.Northern Technologies International Financial Statement Overview
Summary
NTIC exhibits strong profitability margins with a healthy gross profit margin of 39.2% and a net profit margin of 4.5%. While the company maintains low debt levels with a debt-to-equity ratio of 0.07, cash flow management poses challenges, as indicated by the lower free cash flow to net income ratio of 0.21.Income Statement
NTIC's TTM revenue shows a slight decrease compared to the previous annual report. However, the company maintains a healthy gross profit margin of 39.2% and a net profit margin of 4.5% for the TTM period, indicating strong cost management. The EBIT and EBITDA margins are 6.0% and 5.2% respectively, reflecting moderate operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio is low at 0.07, indicating conservative leverage. The return on equity (ROE) is modest at 5.2% based on TTM data, but the equity ratio is strong at 78.8%, highlighting a solid equity base and financial stability.80
Positive
Cash Flow
NTIC's free cash flow growth rate is challenging to assess due to fluctuations in capital expenditures. The operating cash flow to net income ratio is 0.90, which is reasonable. However, the free cash flow to net income ratio is lower at 0.21, suggesting potential cash flow constraints.68
Positive
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.45M | 85.06M | 79.90M | 74.16M | 56.49M | 47.64M |
| Gross Profit | 33.07M | 33.79M | 27.80M | 23.07M | 19.57M | 16.03M |
| EBITDA | 6.18M | 9.74M | 1.20M | 1.99M | 1.97M | -1.61M |
| Net Income | 3.81M | 5.41M | 2.91M | 6.32M | 6.28M | -934.76K |
Balance Sheet | ||||||
| Total Assets | 93.70M | 94.68M | 89.34M | 86.19M | 74.37M | 66.07M |
| Cash, Cash Equivalents and Short-Term Investments | 5.09M | 4.95M | 5.41M | 5.34M | 7.69M | 11.95M |
| Total Debt | 8.40M | 7.54M | 6.79M | 6.46M | 376.44K | 658.79K |
| Total Liabilities | 19.85M | 19.50M | 18.65M | 18.95M | 8.62M | 6.37M |
| Stockholders Equity | 69.75M | 71.19M | 66.36M | 63.60M | 62.37M | 56.66M |
Cash Flow | ||||||
| Free Cash Flow | 817.56K | 2.46M | 2.18M | -557.75K | -2.75M | 4.10M |
| Operating Cash Flow | 3.44M | 5.88M | 5.54M | 1.15M | 2.89M | 4.91M |
| Investing Cash Flow | -4.49M | -3.42M | -3.34M | -7.11M | -103.32K | -2.78M |
| Financing Cash Flow | 1.48M | -2.96M | -2.05M | 3.19M | -1.52M | -1.52M |
Northern Technologies International Technical Analysis
Negative
7.36
Price Trends
7.71
Negative
8.16
Negative
10.38
Negative
Market Momentum
-0.08
Positive
41.87
Neutral
25.03
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 7.36 is below the 20-day moving average (MA) of 8.02, below the 50-day MA of 7.71, and below the 200-day MA of 10.38, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, 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 55 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
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $69.56M | 29.43 | 6.19% | ― | -3.23% | -2.01% | |
65 Neutral | $73.71M | 25.89 | 4.18% | 2.14% | 3.46% | -34.80% | |
58 Neutral | $82.08M | ― | -406.97% | ― | 8400.76% | 31.02% | |
54 Neutral | $480.03M | ― | -12.34% | ― | -19.82% | -34.91% | |
48 Neutral | $8.54M | ― | -34.69% | ― | -74.50% | 7.21% | |
46 Neutral | $80.30M | ― | -28.22% | ― | -17.27% | -112.62% | |
44 Neutral | AU$1.47B | -5.90 | -41.17% | 4.23% | -3.35% | -41.14% |
* Basic Materials Sector Average
Performance Comparison
NTIC
Northern Technologies International
7.36
-5.25
-41.63%
FSI
Flexible Solutions International
5.68
3.82
205.38%
GPRE
Green Plains
7.31
-6.90
-48.56%
GURE
Gulf Resources
0.62
-0.46
-42.59%
ALTO
Alto Ingredients
1.00
-0.43
-30.07%
LOOP
Loop Industries
1.57
-0.14
-8.19%
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.