NasdaqGM:NTIC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

NTIC

-3.1%

US Chemicals

-1.1%

US Market


1 Year Return

-33.9%

NTIC

3.4%

US Chemicals

15.0%

US Market

Return vs Industry: NTIC underperformed the US Chemicals industry which returned 5.6% over the past year.

Return vs Market: NTIC underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

NTICIndustryMarket
7 Day-6.0%-3.1%-1.1%
30 Day-4.2%0.5%2.9%
90 Day-8.8%2.8%5.7%
1 Year-33.3%-33.9%5.8%3.4%17.6%15.0%
3 Year-1.6%-5.8%10.1%-10.8%38.9%29.7%
5 Year0.5%-3.8%54.2%18.5%78.4%58.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTIC ($8.19) is trading below our estimate of fair value ($23.1)

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


Price To Earnings Ratio

PE vs Industry: NTIC is poor value based on its PE Ratio (59.3x) compared to the US Chemicals industry average (26.6x).

PE vs Market: NTIC is poor value based on its PE Ratio (59.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NTIC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: NTIC is good value based on its PB Ratio (1.3x) compared to the US Chemicals industry average (2x).


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?

138.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTIC's forecast earnings growth (138.8% per year) is above the savings rate (2.2%).

Earnings vs Market: NTIC's earnings (138.8% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: NTIC's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: NTIC's revenue is forecast to decline over the next 3 years (-0.3% 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?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTIC has high quality earnings.

Growing Profit Margin: NTIC's current net profit margins (2.5%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: NTIC's earnings have grown significantly by 32% 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 (-80.7%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).


Return on Equity

High ROE: NTIC's Return on Equity (2.8%) 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 ($32.6M) exceed its short term liabilities ($4.5M).

Long Term Liabilities: NTIC's short term assets ($32.6M) exceed its long term liabilities ($314.5K).


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 current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NTIC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NTIC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NTIC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NTIC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NTIC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTIC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

14.9yrs

Average management tenure


CEO

G. Lynch (53 yo)

14.75yrs

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 ($USD873.18K) is above average for companies of similar size in the US market ($USD585.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
G. Lynch
President14.75yrsUS$873.18k0.81%
$ 593.6k
Matthew Wolsfeld
CFO & Corporate Secretary18.92yrsUS$648.58k1.48%
$ 1.1m
Vineet Dalal
VP & Director of Global Market Development - Natur-Tec14.92yrsno datano data

14.9yrs

Average Tenure

50yo

Average Age

Experienced Management: NTIC's management team is seasoned and experienced (14.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Lynch
President14.75yrsUS$873.18k0.81%
$ 593.6k
Donald Kubik
Director Emeritus10.17yrsUS$204.67kno data
Richard Nigon
Independent Non-Executive Chairman7.92yrsUS$125.50k0.34%
$ 245.1k
Konstantin von Falkenhausen
Independent Director7.92yrsUS$96.50k0.013%
$ 9.6k
Soo Keong Koh
Independent Director12.42yrsUS$86.00k0.37%
$ 267.0k
Sunggyu Lee
Independent Director16.75yrsUS$34.00k0%
$ 0
Ramani Narayan
Director15.92yrsUS$224.00k0.43%
$ 312.4k
Nancy Calderon
Independent Director1yrno data0.011%
$ 8.0k
Sarah Kemp
Independent Director1yrno datano data

10.2yrs

Average Tenure

68yo

Average Age

Experienced Board: NTIC's board of directors are seasoned and experienced ( 10.2 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 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$72.891m
  • 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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:49
End of Day Share Price2020/10/28 00:00
Earnings2020/05/31
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.