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NL Industries (NL)
NYSE:NL
US Market
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NL Industries (NL) AI Stock Analysis

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NL Industries

(NYSE:NL)

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Neutral 59 (OpenAI - Gpt-5.6Sol)
Rating:59Neutral
Price Target:
$7.50
▲(11.44% 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
Extremely low leverage reduces solvency risk and preserves financial flexibility through changing demand conditions. A strong capital structure can support investment, dividends, or strategic actions without the added burden of substantial interest obligations or refinancing needs.
Negative Factors
Inconsistent profitability
The swing from strong profits to losses shows that earnings remain inconsistent despite stable gross profit. This volatility reduces confidence in the durability of reported earnings and can constrain the company’s ability to plan capital allocation around predictable recurring profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low leverage reduces solvency risk and preserves financial flexibility through changing demand conditions. A strong capital structure can support investment, dividends, or strategic actions without the added burden of substantial interest obligations or refinancing needs.
Read all positive factors

NL Industries (NL) vs. SPDR S&P 500 ETF (SPY)

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 Industries makes money primarily through the sale of products manufactured and sold by its operating subsidiary CompX International. The main revenue streams are: (1) Security products—revenue generated from manufacturing and selling locks, loc...

NL Industries Financial Statement Overview

Summary
Balance sheet strength (very low leverage) supports stability, and TTM operating/free cash flow is positive again. However, profitability is inconsistent with net income losses in TTM and 2025 following stronger prior years, and cash flow has shown meaningful volatility.
Income Statement
42
Neutral
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue161.83M158.28M145.94M161.29M166.56M140.81M
Gross Profit51.91M48.18M41.36M49.22M48.80M42.75M
EBITDA-31.18M-47.01M107.84M-1.70M44.16M65.82M
Net Income-25.55M-37.83M67.23M-2.31M33.84M51.19M
Balance Sheet
Total Assets470.57M470.01M578.26M576.66M609.87M596.15M
Cash, Cash Equivalents and Short-Term Investments106.99M113.74M163.15M164.67M139.03M147.00M
Total Debt1.41M500.00K500.00K500.00K500.00K500.00K
Total Liabilities88.73M93.22M162.35M184.90M207.12M211.18M
Stockholders Equity363.03M358.77M396.90M369.81M382.15M362.47M
Cash Flow
Free Cash Flow4.16M-40.15M24.14M35.87M23.24M13.52M
Operating Cash Flow7.67M-36.40M25.57M37.00M26.93M17.61M
Investing Cash Flow-808.00K-2.44M58.87M22.10M-67.87M6.71M
Financing Cash Flow-37.64M-31.30M-41.63M-15.23M-36.80M-14.35M

NL Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.73
Price Trends
50DMA
6.25
Positive
100DMA
6.17
Positive
200DMA
5.90
Positive
Market Momentum
MACD
0.21
Negative
RSI
62.44
Neutral
STOCH
72.01
Neutral
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 6.73 is above the 20-day moving average (MA) of 6.66, above the 50-day MA of 6.25, and above the 200-day MA of 5.90, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.01 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$473.60M20.3815.67%3.31%5.96%18.44%
65
Neutral
$626.17M22.9011.52%5.23%130.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
$342.78M-13.34-7.02%5.61%5.98%-147.66%
59
Neutral
$36.40M74.291.16%67.73%
57
Neutral
$925.55M-194.04-4.53%41.67%94.89%
47
Neutral
$59.41M-1.38-23.56%-8.74%-46.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL
NL Industries
6.95
1.04
17.58%
CIX
Compx International
36.27
12.11
50.11%
SNT
Senstar Technologies
1.56
-2.68
-63.21%
MG
Mistras Group
19.36
9.53
96.95%
EVLV
Evolv Technologies Holdings
5.05
-3.12
-38.17%
BAER
Bridger Aerospace Group Holdings
0.99
-0.87
-46.67%

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...
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.Date of analysis: Aug 06, 2026