NYSE:NL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NL is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: NL's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

17.5%

NL

0.2%

US Commercial Services

2.8%

US Market


1 Year Return

17.0%

NL

12.4%

US Commercial Services

20.9%

US Market

Return vs Industry: NL exceeded the US Commercial Services industry which returned 12.4% over the past year.

Return vs Market: NL underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

NLIndustryMarket
7 Day17.5%0.2%2.8%
30 Day19.8%11.3%12.8%
90 Day41.7%7.3%6.6%
1 Year21.0%17.0%14.2%12.4%23.6%20.9%
3 Year-65.1%-66.3%55.2%45.4%47.3%37.6%
5 Year49.5%44.6%123.2%100.7%94.3%72.9%

Long-Term 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 compared to its fair value and its price relative to the market?

14.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NL ($4.96) is trading above our estimate of fair value ($4.01)

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 PE Ratio (14.5x) compared to the US Commercial Services industry average (26.8x).

PE vs Market: NL is good value based on its PE Ratio (14.5x) compared to the US market (19.7x).


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 PB Ratio (0.8x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

25.9%

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.


Next Steps

Past Performance

How has NL Industries performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NL has a large one-off loss of $10.6M impacting its September 30 2020 financial results.

Growing Profit Margin: NL's current net profit margins (14.6%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: NL has become profitable over the past 5 years, growing earnings by 7.8% per year.

Accelerating Growth: NL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NL had negative earnings growth (-25.3%) over the past year, making it difficult to compare to the Commercial Services industry average (-5.9%).


Return on Equity

High ROE: NL's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is NL Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NL's short term assets ($164.8M) exceed its short term liabilities ($27.4M).

Long Term Liabilities: NL's short term assets ($164.8M) do not cover its long term liabilities ($183.2M).


Debt to Equity History and Analysis

Debt Level: NL's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NL's debt is well covered by operating cash flow (3837.4%).

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


Balance Sheet


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NL's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NL's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), NL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Robert Graham (64 yo)

6.67yrs

Tenure

US$5,660,000

Compensation

Mr. Robert D. Graham has served as a Vice Chairman of the Board of CompX International Inc. since May 2018. He is has been Chief Executive Officer of NL Industries, Inc. since February 2014 and its Vice Ch...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD5.66M) is above average for companies of similar size in the US market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman & CEO6.67yrsUS$5.66m0.013%
$ 32.2k
Courtney Riley
President3.5yrsUS$802.00kno data
Amy Samford
VP & CFO1.42yrsUS$432.00kno data
Andrew Nace
Executive Vice President3.83yrsUS$1.95mno data
John Powers
VP & General Counsel3.5yrsno datano data
Clarence Brown
VP, Secretary & Associate General Counsel3.5yrsno datano data
Bryan Hanley
VP & Treasurer3.25yrsno data0.0021%
$ 5.0k
Patty Brinda
VP & Controller1.42yrsno datano data

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: NL's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman & CEO6.67yrsUS$5.66m0.013%
$ 32.2k
Thomas Stafford
Independent Director20.83yrsUS$108.95k0.027%
$ 66.5k
Meredith Mendes
Independent Director2.67yrsUS$98.95k0.030%
$ 71.4k
Cecil Moore
Independent Director17.08yrsUS$101.45k0.060%
$ 145.8k
John Harper
Independent Director4.5yrsUS$98.95k0.037%
$ 88.8k
Loretta Feehan
Independent Chair of the Board3.5yrsUS$103.95k0.043%
$ 103.7k

5.6yrs

Average Tenure

64yo

Average Age

Experienced Board: NL's board of directors are considered experienced (5.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$241.993m
  • Shares outstanding: 48.79m
  • Website: https://www.nl-ind.com

Number of Employees


Location

  • NL Industries, Inc.
  • Three Lincoln Center
  • Suite 1700
  • Dallas
  • Texas
  • 75240-2620
  • 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 an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:23
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.