NYSE:NL

Stock Analysis Report

Executive Summary

NL Industries, Inc., through its subsidiary CompX International Inc., operates in the component products industry in the United States and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Risks

  • NL Industries has significant price volatility in the past 3 months.
  • NL Industries is not covered by any analysts.

Share Price & News

How has NL Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-16.2%

NYSE:NL

-0.3%

US Commercial Services

-0.7%

US Market


1 Year Return

-57.3%

NYSE:NL

5.8%

US Commercial Services

-0.5%

US Market

NL underperformed the Commercial Services industry which returned 5.9% over the past year.

NL underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NLIndustryMarket
7 Day-16.2%-0.3%-0.7%
30 Day-34.1%-0.9%-3.0%
90 Day1.6%3.4%0.9%
1 Year-57.3%-57.3%9.9%5.8%1.7%-0.5%
3 Year4.8%4.8%64.3%53.2%39.5%30.4%
5 Year-63.3%-63.3%96.4%76.6%54.1%37.0%

Price Volatility Vs. Market

How volatile is NL Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NL Industries undervalued based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NL Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

NL Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NL Industries is good value based on earnings compared to the US Commercial Services industry average.

NL Industries is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for NL Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

NL Industries is good value based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is NL Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if NL Industries is high growth as no revenue estimate data is available.

NL Industries's earnings are expected to grow significantly at over 20% yearly.

Unable to compare NL Industries's revenue growth to the United States of America market average as no estimate data is available.

NL Industries's earnings growth is expected to exceed the United States of America market average.

NL Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if NL Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has NL Industries performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NL Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

NL Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NL Industries's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

NL Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NL Industries used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

NL Industries has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is NL Industries's financial position?


Financial Position Analysis

NL Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NL Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NL Industries's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if NL Industries's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (4565%, greater than 20% of total debt).

NL Industries earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 331.3x debt.


Next Steps

Dividend

What is NL Industries's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate NL Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NL Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NL Industries has not reported any payouts.

Unable to verify if NL Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NL Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NL Industries's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Robert Graham (63yo)

5.5yrs

Tenure

US$4,887,000

Compensation

Mr. Robert D. Graham serves as a Vice Chairman of the Board at CompX International Inc. He is has been Chief Executive Officer of NL Industries, Inc. since February 2014 and its Vice Chairman Since May 201 ...


CEO Compensation Analysis

Robert's remuneration is higher than average for companies of similar size in United States of America.

Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

The tenure for the NL Industries management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

63yo

Average Age

The tenure for the NL Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$68,69403 Jan 19
Thomas Stafford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares19,000
Max PriceUS$3.68

Ownership Breakdown


Management Team

  • Robert Graham (63yo)

    Vice Chairman & CEO

    • Tenure: 5.5yrs
    • Compensation: US$4.89m
  • Kelly Luttmer (55yo)

    Executive VP & Chief Tax Officer

    • Tenure: 8.6yrs
    • Compensation: US$2.85m
  • Andrew Nace (54yo)

    Executive Vice President

    • Tenure: 2.6yrs
    • Compensation: US$1.63m
  • Clarence Brown (50yo)

    VP, Secretary & Associate General Counsel

    • Tenure: 2.3yrs
  • Courtney Riley (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$743.00k
  • Amy Samford (45yo)

    VP & CFO

    • Tenure: 0.2yrs
  • Bryan Hanley (38yo)

    VP & Treasurer

    • Tenure: 2.0yrs
  • John Powers (46yo)

    VP & General Counsel

    • Tenure: 2.3yrs
  • Patty Brinda (56yo)

    VP & Controller

    • Tenure: 0.2yrs

Board Members

  • Robert Graham (63yo)

    Vice Chairman & CEO

    • Tenure: 5.5yrs
    • Compensation: US$4.89m
  • Thomas Stafford (88yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$117.95k
  • Meredith Mendes (60yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$78.45k
  • Cecil Moore (79yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$97.95k
  • John Harper (57yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$97.95k
  • Loretta Feehan (63yo)

    Chair of the Board

    • Tenure: 2.3yrs
    • Compensation: US$102.95k

Company Information

NL Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NL Industries, Inc.
  • Ticker: NL
  • Exchange: NYSE
  • Founded: 1891
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$159.431m
  • Shares outstanding: 48.76m
  • Website: https://www.nl-ind.com

Number of Employees


Location

  • NL Industries, Inc.
  • Three Lincoln Center
  • Suite 1700
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968

Biography

NL Industries, Inc., through its subsidiary CompX International Inc., operates in the component products industry in the United States and internationally. The company manufactures and sells mechanical and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:44
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.