NasdaqGM:NTIC

Stock Analysis Report

Northern Technologies International

Executive Summary

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Northern Technologies International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTIC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

NTIC

2.0%

US Chemicals

2.4%

US Market


1 Year Return

-43.3%

NTIC

-28.6%

US Chemicals

-10.0%

US Market

Return vs Industry: NTIC underperformed the US Chemicals industry which returned -33.1% over the past year.

Return vs Market: NTIC underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NTICIndustryMarket
7 Day2.2%2.0%2.4%
30 Day-29.4%-13.9%-11.0%
90 Day-50.4%-26.0%-19.4%
1 Year-42.1%-43.3%-23.9%-28.6%-8.1%-10.0%
3 Year-18.5%-22.0%-6.5%-24.4%17.3%9.6%
5 Year-12.7%-16.4%3.0%-19.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is Northern Technologies International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northern Technologies International undervalued compared to its fair value and its price relative to the market?

12.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NTIC ($7.02) is trading above our estimate of fair value ($5.69)

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


Price To Earnings Ratio

PE vs Industry: NTIC is good value based on its PE Ratio (13x) compared to the Chemicals industry average (14.2x).

PE vs Market: NTIC is poor value based on its PE Ratio (13x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NTIC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NTIC is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Northern Technologies International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTIC's forecast earnings growth (22.7% per year) is above the savings rate (1.7%).

Earnings vs Market: NTIC's earnings (22.7% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTIC's revenue (13.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: NTIC's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NTIC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Northern Technologies International performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTIC has high quality earnings.

Growing Profit Margin: NTIC's current net profit margins (8.7%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: NTIC's earnings have grown significantly by 32.2% per year over the past 5 years.

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

Earnings vs Industry: NTIC had negative earnings growth (-30.8%) over the past year, making it difficult to compare to the Chemicals industry average (-11.3%).


Return on Equity

High ROE: NTIC's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Northern Technologies International's financial position?


Financial Position Analysis

Short Term Liabilities: NTIC's short term assets ($32.0M) exceed its short term liabilities ($6.7M).

Long Term Liabilities: NTIC's short term assets ($32.0M) exceed its long term liabilities ($302.9K).


Debt to Equity History and Analysis

Debt Level: NTIC is debt free.

Reducing Debt: NTIC had no debt 5 years ago.

Debt Coverage: NTIC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NTIC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Northern Technologies International's current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTIC's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: NTIC's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NTIC has been paying a dividend for less than 10 years.

Growing Dividend: NTIC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), NTIC'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?

8.5yrs

Average board tenure


CEO

G. Lynch (52yo)

14.25s

Tenure

US$873,178

Compensation

Mr. G. Patrick Lynch has been the Chief Executive Officer of Northern Technologies International Corporation since January 31, 2006 and has been its President since July 2005. Mr. Lynch served as the Presi ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD873.18K) is above average for companies of similar size in the US market ($USD622.20K).

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


Board Members

NamePositionTenureCompensationOwnership
G. Lynch
President14.25yrsUS$873.18k0.81% $520.2k
Donald Kubik
Director Emeritus9.67yrsUS$204.67kno data
Richard Nigon
Independent Non-Executive Chairman7.42yrsUS$125.50k0.34% $214.8k
Konstantin von Falkenhausen
Independent Director7.42yrsUS$96.50k0.013% $8.4k
Soo Keong Koh
Independent Director11.92yrsUS$86.00k0.37% $234.0k
Sunggyu Lee
Independent Director16.25yrsUS$34.00kno data
Ramani Narayan
Director15.42yrsUS$224.00k0.43% $273.8k
Barbara Colwell
Independent Director6.42yrsUS$92.50k0.033% $21.1k
Nancy Calderon
Independent Director0.50yrno datano data
Sarah Kemp
Independent Director0.50yrno datano data

8.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NTIC's board of directors are considered experienced (8.5 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

Northern Technologies International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Technologies International Corporation
  • Ticker: NTIC
  • Exchange: NasdaqGM
  • Founded: 1970
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$63.863m
  • Shares outstanding: 9.10m
  • Website: https://www.ntic.com

Number of Employees


Location

  • Northern Technologies International Corporation
  • 4201 Woodland Road
  • PO Box 69
  • Circle Pines
  • Minnesota
  • 55014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTICNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1977

Biography

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company also provides a portfolio of biobased and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site technical consulting for rust and corrosion prevention issues. The company sells its products and services through a direct sales force, a network of independent distributors and agents, manufacturer’s sales representatives, strategic partners, and joint venture arrangements primarily in North America, South America, Europe, Asia, and the Middle East. Northern Technologies International Corporation was founded in 1970 and is headquartered in Circle Pines, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 00:23
End of Day Share Price2020/04/07 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.