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NL

NL IndustriesNYSE:NL Stock Report

Market Cap

US$289.4m

7D

-4.5%

1Y

14.5%

Updated

03 Dec, 2021

Data

Company Financials
NL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends3/6

NL Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for NL Industries
Historical stock prices
Current Share PriceUS$5.93
52 Week HighUS$8.50
52 Week LowUS$4.42
Beta1.34
1 Month Change-0.34%
3 Month Change-8.63%
1 Year Change14.48%
3 Year Change52.84%
5 Year Change-8.77%
Change since IPO-75.55%

Recent News & Updates

Sep 04

NL Industries: Reap Dividend While Turnaround Takes Shape

NL Industries' dividend yield currently stands at 3.70%. The dividend is being paid by using almost half of the dividends received from a minority interest in Kronos Worldwide. The company is raising cash to face ongoing and future claims due to the manufacturing of lead-based paints and lead-based pigments in the past. The dividend still has ample room to grow as the company is sitting on a cash pile. Averaging down and an exit plan is needed due to the company's cyclical nature.

Shareholder Returns

NLUS Commercial ServicesUS Market
7D-4.5%-1.8%-2.7%
1Y14.5%20.6%16.6%

Return vs Industry: NL underperformed the US Commercial Services industry which returned 23% over the past year.

Return vs Market: NL underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is NL's price volatile compared to industry and market?
NL volatility
NL Average Weekly Movement8.2%
Commercial Services Industry Average Movement5.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: NL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NL's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18912,755Courtney Rileyhttps://www.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 CapUS$289.40m
Earnings (TTM)US$40.58m
Revenue (TTM)US$136.73m

7.1x

P/E Ratio

2.1x

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)
RevenueUS$136.73m
Cost of RevenueUS$95.75m
Gross ProfitUS$40.99m
ExpensesUS$410.00k
EarningsUS$40.58m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.83
Gross Margin29.98%
Net Profit Margin29.68%
Debt/Equity Ratio0.1%

How did NL perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NL ($5.93) is trading below our estimate of fair value ($8.91)

Significantly Below Fair Value: NL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NL is good value based on its PE Ratio (7.1x) compared to the US Commercial Services industry average (27.7x).

PE vs Market: NL is good value based on its PE Ratio (7.1x) compared to the US market (16.9x).


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 PB Ratio (0.8x) compared to the US Commercial Services industry average (2.2x).


Future Growth

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

19.4%

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?

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NL has a large one-off gain of $10.3M impacting its September 30 2021 financial results.

Growing Profit Margin: NL's current net profit margins (29.7%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: NL's earnings have declined by 15.3% per year over the past 5 years.

Accelerating Growth: NL's earnings growth over the past year (143.4%) exceeds its 5-year average (-15.3% per year).

Earnings vs Industry: NL earnings growth over the past year (143.4%) exceeded the Commercial Services industry 35.3%.


Return on Equity

High ROE: NL's Return on Equity (11.7%) is considered low.


Financial Health

How is NL Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NL's short term assets ($186.7M) exceed its short term liabilities ($30.1M).

Long Term Liabilities: NL's short term assets ($186.7M) exceed its long term liabilities ($177.5M).


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 increased from 0% to 0.1% over the past 5 years.

Debt Coverage: NL's debt is well covered by operating cash flow (4026.6%).

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?

4.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NL's dividend (4.05%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: NL's dividend (4.05%) is in the top 25% of dividend payers in the US market (3.61%)


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 (26.5%), 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?

4.3yrs

Average management tenure


CEO

Courtney Riley (55 yo)

0.50

Tenure

US$871,000

Compensation

Ms. Courtney J. Riley has been Senior Vice President of Environmental Affairs at Kronos Worldwide, Inc. since June 2020. She has serves as President of NL Industries, Inc. since May 18, 2017 and serves as...


CEO Compensation Analysis

Compensation vs Market: Courtney's total compensation ($USD871.00K) is about average for companies of similar size in the US market ($USD1.15M).

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 (4.3 years average tenure).


Board Members

Experienced Board: NL's board of directors are considered experienced (6.7 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.


Top Shareholders

Company Information

NL Industries, Inc.'s 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$289.400m
  • Shares outstanding: 48.80m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:55
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.