Northern Technologies International (NTIC) AI Stock Analysis

• Market Cap: $74.04M
• Dividend Yield: 1.32%
• Average Volume (3M): 31.54K
• Price to Earnings (P/E): 4338.9
• Beta (1Y): 0.04
• 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: 41,413
• 30 Day Avg. Volume: 31,537
• 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: 1.09
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: $13.00
• Price Target Upside: 71.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $7.50 ▼(-0.79% Downside)

The overall stock score is primarily impacted by weak financial performance and technical analysis indicators. The high P/E ratio suggests overvaluation, and despite strategic expansions, the earnings call highlighted significant challenges. Improvements in profitability and cash flow management are needed to enhance the stock's outlook.

Positive Factors

Strategic Expansion

This contract enhances NTIC's market position in the South American offshore sector, potentially driving long-term revenue growth and market penetration.

Market Growth in China

Strong sales growth in China reflects NTIC's successful market strategies and positions the company for continued expansion in a key global market.

Joint Venture Sales Growth

Growth in joint venture sales indicates successful collaborations and potential for sustained revenue streams from strategic partnerships.

Negative Factors

Decreased Sales

Declining sales highlight challenges in maintaining market share and could impact long-term revenue stability if not addressed.

High Effective Tax Rate

A high tax rate reduces net income and could limit reinvestment capacity, affecting future growth and profitability.

Net Loss

Reporting a net loss indicates financial strain and operational challenges, potentially impacting investor confidence and future financial health.

Northern Technologies International Business Overview & Revenue Model

Company Description

Northern Technologies International Corporation (NTIC) is a global leader in providing innovative corrosion protection solutions and environmentally friendly products. The company primarily operates in the industrial and automotive sectors, specializing in advanced technologies that prevent corrosion and extend the life of metal products. NTIC's core offerings include its proprietary corrosion inhibitors, biodegradable products, and various coatings designed for diverse applications, from automotive to oil and gas industries.

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: Positive
• Last Price: 7.56
• 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 Positive. The current price of 7.56 is above the 20-day moving average (MA) of 7.47, below the 50-day MA of 7.68, and below the 200-day MA of 8.04, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 55.14 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	$87.45M	47.39	5.08%	―	0.18%	-54.25%
ALTO	54 Neutral	$189.49M	-3.51	-20.64%	―	-8.00%	-35.86%
SNES	49 Neutral	$12.13M	-0.64	-77.79%	―	39.37%	69.81%
LOOP	47 Neutral	$44.20M	-3.76	―	―	11013.00%	39.85%
NTIC	44 Neutral	$74.04M	4,338.89	0.02%	1.32%	-0.97%	-99.67%
TSE	44 Neutral	$17.40M	-0.04	―	7.27%	-11.20%	17.76%

Northern Technologies International Corporate Events

Northern Technologies Q4 Earnings Call: Mixed Signals

During the latest earnings call, Northern Technologies International (NTIC) expressed a mixed sentiment, highlighting both strategic investments and market expansions in China and Brazil, which are expected to yield benefits in fiscal 2026. However, the company also faced significant challenges, including a decrease in sales and profitability, high effective tax rates, and a net loss for the quarter.

Northern Technologies International Reports Fiscal 2025 Results

Northern Technologies International Corporation (NTIC) is a company specializing in corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, serving various industries including automotive, oil and gas, and consumer markets.