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NTIC

Northern Technologies International NasdaqGM:NTIC Stock Report

Last Price

US$10.90

Market Cap

US$100.6m

7D

-3.3%

1Y

-43.2%

Updated

06 Aug, 2022

Data

Company Financials +
NTIC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends2/6

NTIC Stock Overview

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services in North America, South America, Europe, Asia, the Middle East and internationally.

Northern Technologies International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Northern Technologies International
Historical stock prices
Current Share PriceUS$10.90
52 Week HighUS$19.57
52 Week LowUS$9.05
Beta1.16
1 Month Change6.35%
3 Month Change-2.24%
1 Year Change-43.23%
3 Year Change-2.85%
5 Year Change26.38%
Change since IPO658.26%

Recent News & Updates

Jul 23
Northern Technologies International (NASDAQ:NTIC) Is Paying Out A Dividend Of $0.07

Northern Technologies International (NASDAQ:NTIC) Is Paying Out A Dividend Of $0.07

Northern Technologies International Corporation's ( NASDAQ:NTIC ) investors are due to receive a payment of $0.07 per...

Jul 20

Northern Technologies declares $0.07 dividend

Northern Technologies (NASDAQ:NTIC) declares $0.07/share quarterly dividend, in line with previous. Forward yield 2.65% Payable Aug. 17; for shareholders of record Aug. 3; ex-div Aug. 2. See NTIC Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 07

Northern Technologies Non-GAAP EPS of $0.12 misses by $0.03, revenue of $18.96M misses by $0.04M

Northern Technologies press release (NASDAQ:NTIC): Q3 Non-GAAP EPS of $0.12 misses by $0.03. Revenue of $18.96M (+23.1% Y/Y) misses by $0.04M.

Shareholder Returns

NTICUS ChemicalsUS Market
7D-3.3%-0.8%1.0%
1Y-43.2%-7.6%-12.9%

Return vs Industry: NTIC underperformed the US Chemicals industry which returned -7.6% over the past year.

Return vs Market: NTIC underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is NTIC's price volatile compared to industry and market?
NTIC volatility
NTIC Average Weekly Movement7.0%
Chemicals Industry Average Movement7.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: NTIC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NTIC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1970200G. Lynchhttps://www.ntic.com

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services in North America, South America, Europe, Asia, the Middle East and internationally. 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 bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand.

Northern Technologies International Fundamentals Summary

How do Northern Technologies International's earnings and revenue compare to its market cap?
NTIC fundamental statistics
Market CapUS$100.63m
Earnings (TTM)US$7.33m
Revenue (TTM)US$69.42m

13.7x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTIC income statement (TTM)
RevenueUS$69.42m
Cost of RevenueUS$46.90m
Gross ProfitUS$22.52m
Other ExpensesUS$15.19m
EarningsUS$7.33m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.79
Gross Margin32.44%
Net Profit Margin10.56%
Debt/Equity Ratio6.8%

How did NTIC perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

35%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NTIC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NTIC?

Other financial metrics that can be useful for relative valuation.

NTIC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA50.7x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does NTIC's PE Ratio compare to its peers?

NTIC PE Ratio vs Peers
The above table shows the PE ratio for NTIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40.3x
ADES Advanced Emissions Solutions
2xn/aUS$87.9m
VNTR Venator Materials
3.4x-47.2%US$195.3m
NANX Nanophase Technologies
141.9xn/aUS$152.0m
FF FutureFuel
13.9xn/aUS$314.7m
NTIC Northern Technologies International
13.7x27.9%US$100.6m

Price-To-Earnings vs Peers: NTIC is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (40.3x).


Price to Earnings Ratio vs Industry

How does NTIC's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: NTIC is good value based on its Price-To-Earnings Ratio (13.7x) compared to the US Chemicals industry average (15.6x)


Price to Earnings Ratio vs Fair Ratio

What is NTIC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NTIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: NTIC is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


Share Price vs Fair Value

What is the Fair Price of NTIC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NTIC ($10.9) is trading above our estimate of fair value ($6.15)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTIC's forecast earnings growth (27.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NTIC's earnings (27.9% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: NTIC's revenue (15.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: NTIC's revenue (15.4% 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


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Past Performance

How has Northern Technologies International 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


4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTIC has a large one-off gain of $3.8M impacting its May 31 2022 financial results.

Growing Profit Margin: NTIC's current net profit margins (10.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: NTIC's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: NTIC's earnings growth over the past year (155.9%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: NTIC earnings growth over the past year (155.9%) exceeded the Chemicals industry 18.6%.


Return on Equity

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


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Financial Health

How is Northern Technologies International's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NTIC's short term assets ($39.0M) exceed its short term liabilities ($14.2M).

Long Term Liabilities: NTIC's short term assets ($39.0M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

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

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

Debt Coverage: NTIC's debt is well covered by operating cash flow (77%).

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


Balance Sheet


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Dividend

What is Northern Technologies International 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

  • Cash Flow Coverage


2.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NTIC's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: NTIC's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: NTIC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NTIC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.5%), NTIC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: NTIC is paying a dividend but the company has no free cash flows.


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Management

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

17.1yrs

Average management tenure


CEO

G. Lynch (55 yo)

17.08yrs

Tenure

US$1,058,228

Compensation

Mr. G. Patrick Lynch has been the Chief Executive Officer of Northern Technologies International Corporation (NTIC) since January 31, 2006 and has been its President since July 2005. From July 2005 to Janu...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD1.06M) is above average for companies of similar size in the US market ($USD767.72K).

Compensation vs Earnings: G.'s compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NTIC's management team is seasoned and experienced (17.1 years average tenure).


Board Members

Experienced Board: NTIC's board of directors are seasoned and experienced ( 12.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Northern Technologies International Corporation's 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
  • Implied Market Cap: US$100.634m
  • Shares outstanding: 9.23m
  • Website: https://www.ntic.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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.