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Northern Technologies International (NTIC)
NASDAQ:NTIC
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Northern Technologies International
(NASDAQ:NTIC)
63Neutral
Northern Technologies International (NTIC) vs. S&P 500 (SPY)
Market Cap
$98.78M
Dividend Yield2.73%
Average Volume (3M)17.86K
Price to Earnings (P/E)20.2
Beta (1Y)0.24
Revenue Growth7.59%
EPS Growth52.73%
CountryUS
Employees262
SectorBasic Materials
Sector Strength64
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.52
Shares Outstanding9,470,507
10 Day Avg. Volume24,730
30 Day Avg. Volume17,865
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)N/A
Price to Sales (P/S)1.22
Price to Cash Flow (P/CF)11.00
P/FCF Ratio10.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Northern Technologies International Business Overview & Revenue Model
Company DescriptionNorthern 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. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. The company sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors and agents, manufacturer's sales representatives, strategic partners, and joint venture. Northern Technologies International Corporation was founded in 1970 and is headquartered in Circle Pines, Minnesota.
How the Company Makes MoneyNTIC generates revenue through the sale of its proprietary corrosion-prevention products under the Zerust brand, which are used extensively by manufacturers and industrial clients to protect metal products from rust and corrosion. Additionally, the company capitalizes on the growing demand for environmentally friendly products through its Natur-Tec line of bioplastics, offering sustainable alternatives to conventional plastics. NTIC also forms strategic alliances and joint ventures to expand its market reach and enhance its product offerings, contributing significantly to its income. These partnerships often involve localized production and distribution agreements, allowing NTIC to penetrate international markets and leverage local expertise.
Northern Technologies International Financial Statement Overview
Summary
NTIC shows strong revenue growth and operational efficiency, supported by a stable balance sheet. However, there is significant volatility in net income, impacting cash flow stability and posing risks to financial health.Income Statement
The company shows a solid revenue growth trend with a notable increase in gross profit margins over the years, indicating operational efficiency. However, the net profit margin is inconsistent, with a significant spike in 2024 due to an unusually high net income. The EBIT and EBITDA margins indicate a stable operating performance, but the volatility in net income suggests potential underlying risks.70
Positive
Balance Sheet
NTIC maintains a strong equity position with an improving equity ratio, reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage use. However, the return on equity is skewed by the recent net income anomaly, which may not be sustainable. Overall, the balance sheet displays a robust financial structure with some caution regarding income consistency.65
Positive
Cash Flow
The cash flow statement reveals a fluctuating free cash flow growth rate, with periods of both positive and negative growth. The operating cash flow is generally positive, supporting business operations, but the free cash flow to net income ratio is inconsistent due to erratic net income figures. While cash flow generation is adequate, the inconsistency in net income affects cash flow stability.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 86.22M | 85.06M | 79.90M | 74.16M | 56.49M | 47.64M |
| Gross Profit | |||||
| 34.62M | 33.79M | 27.80M | 23.07M | 19.57M | 16.03M |
| EBIT | |||||
| 5.12M | 7.87M | 6.02M | 3.63M | 8.32M | 687.68K |
| EBITDA | |||||
| 6.22M | 9.74M | 1.20M | 1.99M | 1.97M | -1.61M |
| Net Income Common Stockholders | |||||
| 5.07M | 5.41B | 2.91M | 6.32M | 6.28M | -934.76K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.33M | 4.95M | 5.41M | 5.34M | 7.69M | 11.95M |
| Total Assets | |||||
| 30.28M | 94.68M | 89.34M | 86.19M | 74.37M | 66.07M |
| Total Debt | |||||
| 1.16M | 7.54M | 6.79M | 6.46M | 376.44K | 658.79K |
| Net Debt | |||||
| -171.58K | 2.58M | 1.38M | 1.12M | -7.30M | -5.74M |
| Total Liabilities | |||||
| 3.54M | 19.50M | 18.65M | 18.95M | 8.62M | 6.37M |
| Stockholders Equity | |||||
| 26.74M | 71.19M | 66.36M | 63.60M | 62.37M | 56.66M |
| Cash Flow | Free Cash Flow | ||||
| 987.39K | 2.46M | 2.18M | -557.75K | -2.75M | 4.10M |
| Operating Cash Flow | |||||
| 5.20M | 5.88M | 5.54M | 1.15M | 2.89M | 4.91M |
| Investing Cash Flow | |||||
| -4.25M | -3.42M | -3.34M | -7.11M | -103.32K | -2.78M |
| Financing Cash Flow | |||||
| -1.33M | -2.96M | -2.05M | 3.19M | -1.52M | -1.52M |
Northern Technologies International Technical Analysis
Negative
10.25
Price Trends
11.29
Negative
12.35
Negative
12.74
Negative
Market Momentum
-0.23
Positive
29.23
Positive
3.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIC, the sentiment is Negative. The current price of 10.25 is below the 20-day moving average (MA) of 10.96, below the 50-day MA of 11.29, and below the 200-day MA of 12.74, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 29.23 is Positive, neither overbought nor oversold. The STOCH value of 3.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTIC.
Northern Technologies International Risk Analysis
Northern Technologies International disclosed 55 risk factors in its most recent earnings report. Northern Technologies International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northern Technologies International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.97B | 23.00 | 25.61% | 1.72% | 0.12% | 24.30% | |
73 Outperform | $3.19B | 25.53 | 11.79% | 2.18% | 6.92% | 33.08% | |
65 Neutral | $567.25M | 11.25 | 10.61% | 1.05% | -2.88% | -41.29% | |
63 Neutral | $98.78M | 20.22 | 7.38% | 2.73% | 7.59% | 52.73% | |
61 Neutral | $2.94B | 27.37 | 6.35% | 1.64% | 0.99% | -27.62% | |
57 Neutral | $2.50B | 21.03 | 0.18% | 3.05% | -4.35% | -115.63% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% |
* Basic Materials Sector Average
Performance Comparison
NTIC
Northern Technologies International
10.25
-1.26
-10.95%
ASH
Ashland
53.08
-40.34
-43.18%
FUL
H.B. Fuller Company
54.34
-22.39
-29.18%
KOP
Koppers Holdings
26.00
-28.63
-52.41%
RPM
RPM International
112.59
2.69
2.45%
SXT
Sensient Technologies
75.07
9.04
13.69%
Northern Technologies International Earnings Call Summary
Earnings Call Date: Jan 8, 2025 | % Change Since: -23.22% | Next Earnings Date: Apr 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted NTIC's record-breaking sales and significant growth in the Natur-Tec and Zerust Oil & Gas segments, alongside improved gross margins. However, these positives were partially offset by a decrease in net income, increased operating expenses, and specific challenges in the German market. The overall sentiment is cautiously optimistic with a focus on future growth.Highlights
Record-Breaking Sales
NTIC's first quarter consolidated sales reached a record $21.3 million, a 5.7% increase year-over-year, driven by Natur-Tec's 22.8% sales growth and improvements in China.
Natur-Tec Growth
Natur-Tec sales increased by 22.8% year-over-year to a quarterly record of $5.9 million, with growth driven by new customer wins in North America and India.
Gross Margin Improvement
Gross profit as a percentage of net sales improved by 200 basis points to 38.3% due to successful initiatives to address inflationary pressures.
Zerust Oil & Gas Sales Growth
Zerust Oil & Gas sales on a trailing 12-month basis increased by 20.3% to $9.2 million, reflecting growing demand.
Investment in Sales Infrastructure
Strategic investments were made to expand oil and gas sales infrastructure, with expected accelerated sales in the second half of fiscal 2025.
Lowlights
Decline in Net Income
Net income attributable to NTIC decreased to $561,000 or $0.06 per diluted share from $896,000 or $0.09 per diluted share in the previous year.
Increased Operating Expenses
Total operating expenses rose by 14% to $9.5 million due to higher personnel costs and strategic investments.
Challenges in Germany
The German market is experiencing difficulties due to the automotive industry, particularly affecting joint venture performance in Europe.
Company Guidance
During the Northern Technologies International Corporation (NTIC) Q1 2025 earnings call, the company provided guidance highlighting key financial metrics and future expectations. NTIC reported a 5.7% increase in consolidated net sales, reaching a record $21.3 million for the quarter, with notable contributions from Natur-Tec sales, which surged by 22.8%. Zerust Oil & Gas sales saw a modest 0.7% increase, while NTIC China achieved an 8.6% rise in sales. The company's joint ventures also experienced a 1.2% increase in net sales. NTIC's gross margin improved to 38.3%, reflecting successful quality system improvements and strategic investments in the oil and gas sales infrastructure. Looking ahead, NTIC anticipates further sales growth and enhanced profitability throughout fiscal 2025, driven by increased customer activity and robust demand for Natur-Tec's compostable plastics products.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.