NL Industries (NYSE:NL) - Share price, News & Analysis

NL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	2/6

NL Stock Overview

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

Rewards

Price-To-Earnings ratio (7.1x) is below the US market (14.9x)

Earnings grew by 117% over the past year

Risk Analysis

Earnings have declined by 13.6% per year over past 5 years

Dividend of 3.42% is not well covered by earnings

NL Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NL Industries
Historical stock prices
Current Share Price	US$8.19
52 Week High	US$8.35
52 Week Low	US$5.21
Beta	1.22
1 Month Change	17.50%
3 Month Change	31.25%
1 Year Change	11.43%
3 Year Change	152.00%
5 Year Change	10.68%
Change since IPO	-66.23%

Shareholder Returns

	NL	US Commercial Services	US Market
7D	4.5%	2.1%	1.0%
1Y	11.4%	-4.7%	-15.1%

Return vs Industry: NL exceeded the US Commercial Services industry which returned -4.7% over the past year.

Return vs Market: NL exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is NL's price volatile compared to industry and market?
NL volatility
NL Average Weekly Movement	6.3%
Commercial Services Industry Average Movement	7.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NL's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1891	2,818	Courtney Riley	https://nl-ind.com

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 electronic cabinet locks, and other locking mechanisms, including disc tumbler locks, pin tumbler locking mechanisms, and CompX eLock and StealthLock electronic locks for use in various applications, such as ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, integrated inventory and access control secured narcotics boxes, vending and cash containment machines, medical cabinetry, electronic circuit panels, storage compartments, and gas station security. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; grab handles, pin cleats, and other accessories; and dash panels, LED indicators, wire harnesses, and other accessories primarily for performance and ski/wakeboard boats.

NL Industries Fundamentals Summary

How do NL Industries's earnings and revenue compare to its market cap?
NL fundamental statistics
Market Cap	US$399.69m
Earnings (TTM)	US$56.49m
Revenue (TTM)	US$146.94m

7.1x

P/E Ratio

2.7x

P/S Ratio

Is NL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NL income statement (TTM)
Revenue	US$146.94m
Cost of Revenue	US$103.15m
Gross Profit	US$43.79m
Other Expenses	-US$12.69m
Earnings	US$56.49m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.16
Gross Margin	29.80%
Net Profit Margin	38.44%
Debt/Equity Ratio	0.1%

How did NL perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

22%

Payout Ratio

Does NL pay a reliable dividends?

See NL dividend history and benchmarks

When do you need to buy NL by to receive an upcoming dividend?
NL Industries dividend dates
Ex Dividend Date	Jun 03 2022
Dividend Pay Date	Jun 21 2022
Days until Ex dividend	7 days
Days until Dividend pay date	25 days

Does NL pay a reliable dividends?

See NL dividend history and benchmarks

Valuation

Is NL Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.08x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NL ($8.19) is trading above our estimate of fair value ($6.55)

Significantly Below Fair Value: NL is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: NL is good value based on its Price-To-Earnings Ratio (7.1x) compared to the US Commercial Services industry average (21.8x).

PE vs Market: NL is good value based on its Price-To-Earnings Ratio (7.1x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NL's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: NL is good value based on its Price-To-Book Ratio (1.1x) compared to the US Commercial Services industry average (1.7x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.6%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NL Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has NL Industries performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-13.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NL has high quality earnings.

Growing Profit Margin: NL's current net profit margins (38.4%) are higher than last year (22%).

Past Earnings Growth Analysis

Earnings Trend: NL's earnings have declined by 13.6% per year over the past 5 years.

Accelerating Growth: NL's earnings growth over the past year (117%) exceeds its 5-year average (-13.6% per year).

Earnings vs Industry: NL earnings growth over the past year (117%) exceeded the Commercial Services industry 30.2%.

Return on Equity

High ROE: NL's Return on Equity (14.6%) is considered low.

Financial Health

How is NL Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NL's short term assets ($197.3M) exceed its short term liabilities ($27.5M).

Long Term Liabilities: NL's short term assets ($197.3M) exceed its long term liabilities ($184.0M).

Debt to Equity History and Analysis

Debt Level: NL has more cash than its total debt.

Reducing Debt: NL's debt to equity ratio has reduced from 0.2% to 0.1% over the past 5 years.

Debt Coverage: NL's debt is well covered by operating cash flow (3705.2%).

Interest Coverage: NL earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.42%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NL's dividend (3.42%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NL's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: NL's dividend payments have been volatile in the past 10 years.

Growing Dividend: NL's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.6%), NL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (102.9%), NL's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure

CEO

Courtney Riley (55 yo)

5yrs

Tenure

US$945,000

Compensation

Ms. Courtney J. Riley has been Senior Vice President of Health, Safety and Environment at Kronos Worldwide, Inc. since June 2021 and was its Senior Vice President of Environmental Affairs since June 2020...

CEO Compensation Analysis

Compensation vs Market: Courtney's total compensation ($USD945.00K) is below average for companies of similar size in the US market ($USD2.69M).

Compensation vs Earnings: Courtney's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NL's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: NL's board of directors are considered experienced (8.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31