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NL Industries
(NYSE:NL)
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Rating:59Neutral
Price Target:
$6.00
▲(3.27% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial positioning (minimal leverage and improved TTM cash flow), tempered by inconsistent profitability and earnings volatility. Technicals are weak with the stock trading below key moving averages and a negative MACD. Valuation is supported by a very high dividend yield, but a negative P/E signals current earnings weakness; recent corporate events add a modest positive boost due to improving profitability and dividend continuity.
Positive Factors
Very low leverage / strong balance sheet
Extremely low debt provides durable financial flexibility: it lowers solvency risk, preserves borrowing capacity for downturns or opportunistic investments, and reduces fixed financial costs. Over 2–6 months this supports stability, funding optionality for real estate activity or supporting distributions if earnings recover.
Negative Factors
Earnings volatility / inconsistent profitability
NL’s net income has swung from strong years to losses in 2025 and negative in the TTM, signaling inconsistent earnings generation. Such volatility undermines durable ability to fund dividends and reinvestment, and increases execution risk for strategic plans over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low debt provides durable financial flexibility: it lowers solvency risk, preserves borrowing capacity for downturns or opportunistic investments, and reduces fixed financial costs. Over 2–6 months this supports stability, funding optionality for real estate activity or supporting distributions if earnings recover.
Read all positive factors
NL Industries (NL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.91M
Dividend Yield9.16%
Average Volume (3M)25.88K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth5.98%
EPS Growth-147.66%
CountryUS
Employees2,812
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.52
Shares Outstanding48,898,735
10 Day Avg. Volume30,251
30 Day Avg. Volume25,875
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.74
Price to Sales (P/S)1.69
P/FCF Ratio-6.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)N/A
NL Industries Business Overview & Revenue Model
Company Description
NL Industries, Inc., through its subsidiary CompX International Inc., is a global and domestic manufacturer specializing in diverse component products. The company provides an extensive portfolio of mechanical and electronic locking mechanisms. Th...
How the Company Makes Money
NL primarily generates earnings through (1) equity income and dividends (when paid) from its ownership interest in Kronos Worldwide, Inc., and (2) income from its real estate-related operations. Titanium dioxide-related economics flow to NL indire...
NL Industries Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.83M | 158.28M | 145.94M | 161.29M | 166.56M | 140.81M |
| Gross Profit | 51.91M | 48.18M | 41.36M | 49.22M | 48.80M | 42.75M |
| EBITDA | -31.18M | -47.01M | 107.84M | -1.70M | 44.16M | 65.82M |
| Net Income | -25.55M | -37.83M | 67.23M | -2.31M | 33.84M | 51.19M |
Balance Sheet | ||||||
| Total Assets | 470.57M | 470.01M | 578.26M | 576.66M | 609.87M | 596.15M |
| Cash, Cash Equivalents and Short-Term Investments | 106.99M | 113.74M | 163.15M | 164.67M | 139.03M | 147.00M |
| Total Debt | 1.41M | 500.00K | 500.00K | 500.00K | 500.00K | 500.00K |
| Total Liabilities | 88.73M | 93.22M | 162.35M | 184.90M | 207.12M | 211.18M |
| Stockholders Equity | 363.03M | 358.77M | 396.90M | 369.81M | 382.15M | 362.47M |
Cash Flow | ||||||
| Free Cash Flow | 4.16M | -40.15M | 24.14M | 35.87M | 23.24M | 13.52M |
| Operating Cash Flow | 7.67M | -36.40M | 25.57M | 37.00M | 26.93M | 17.61M |
| Investing Cash Flow | -808.00K | -2.44M | 58.87M | 22.10M | -67.87M | 6.71M |
| Financing Cash Flow | -37.64M | -31.30M | -41.63M | -15.23M | -36.80M | -14.35M |
NL Industries Technical Analysis
Positive
5.81
Price Trends
6.02
Positive
6.04
Positive
5.84
Positive
Market Momentum
0.14
Negative
57.44
Neutral
80.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL, the sentiment is Positive. The current price of 5.81 is below the 20-day moving average (MA) of 6.04, below the 50-day MA of 6.02, and below the 200-day MA of 5.84, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL.
NL Industries Risk Analysis
NL Industries disclosed 18 risk factors in its most recent earnings report. NL Industries reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NL Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $384.90M | 17.53 | 15.67% | 8.24% | 5.96% | 18.44% | |
65 Neutral | $576.48M | 21.16 | 11.52% | ― | 5.23% | 130.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $314.91M | -12.36 | -9.16% | 10.15% | 5.98% | -147.66% | |
57 Neutral | $1.05B | -223.08 | -4.53% | ― | 41.67% | 94.89% | |
55 Neutral | $42.93M | 31.45 | 3.21% | ― | ― | ― | |
47 Neutral | $73.53M | -1.74 | -23.56% | ― | -8.74% | -46.12% |
* Industrials Sector Average
NL
NL Industries
6.44
0.59
10.03%
CIX
Compx International
31.20
1.96
6.71%
SNT
Senstar Technologies
1.84
-2.55
-58.09%
MG
Mistras Group
18.10
8.96
98.03%
EVLV
Evolv Technologies Holdings
5.80
-2.19
-27.41%
BAER
Bridger Aerospace Group Holdings
1.25
-0.80
-39.02%
NL Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
NL Industries reports strong second-quarter profitability gains
Positive
Aug 5, 2026
On August 5, 2026, NLI Holdings reported a sharp improvement in profitability for the second quarter of 2026, with net income attributable to stockholders rising to $9.0 million, or $0.18 per share, from $0.3 million, or $0.01 per share, a year ea...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
NL Industries Completes Reincorporation Merger to Delaware Entity
Neutral
May 26, 2026
On May 26, 2026, NL Industries, Inc. completed a reincorporation merger in which the New Jersey entity was merged into its wholly owned Delaware subsidiary, which now operates as NLI Holdings, Inc. The transaction, approved by shareholders on May ...
Business Operations and StrategyDividendsShareholder Meetings
NL Industries Shareholders Approve Reincorporation and Dividend Plans
Positive
May 14, 2026
On May 14, 2026, NL Industries held its 2026 annual shareholder meeting, where investors elected eight directors, strongly endorsed executive pay in an advisory vote and approved a reincorporation from New Jersey to Delaware via a merger with its ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.