📊 NL Key Takeaways
Is Nl Industries Inc. (NL) a Good Investment?
NL Industries faces fundamental operational deterioration masked by balance sheet strength. Despite 8.5% revenue growth, net income declined 6.9% YoY with EPS collapsing 155.8%, while negative operating cash flow (-$3.5M) indicates the business is not converting reported profits into actual cash generation. Extremely poor returns on capital (ROE 1.2%, ROA 0.9%) reveal the company is destroying shareholder value.
Core operations show resilience with 8.5% revenue growth and positive operating income, supported by a debt-free balance sheet and strong liquidity. However, sizable below-the-line losses translate to negative net income and negative operating cash flow, pressuring sustainability. Wait for clearer conversion of operating profit into cash and reduced non-operating drag before a more constructive stance.
Nl Industries Inc. Key Strengths (NL)
- Zero long-term debt with strong liquidity position ($101.9M cash, 10.65x current ratio)
- Revenue growth of 8.5% YoY demonstrates maintained market demand
- Positive net margin (10.7%) and gross margin (32.7%) remain profitable despite trends
- Debt-free balance sheet with strong liquidity (current/quick ratios)
- Positive operating income and solid gross margin profile
- Healthy cash balance providing runway
NL Stock Risks: Nl Industries Inc. Investment Risks
- Negative operating cash flow (-$3.5M) despite positive net income signals unsustainable profitability or working capital distress
- Declining net income (-6.9% YoY) and catastrophic EPS decline (-155.8% YoY) despite revenue growth indicates severe operational inefficiency
- Critically low returns on equity (1.2%) and assets (0.9%) demonstrate capital is being destroyed rather than deployed effectively
- Persistent net losses despite positive operating profit
- Negative operating cash flow and FCF margin
- Large non-operating charges creating a gap between operating and net income
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business sustainability
- Net income and operating margin progression - need to identify root cause of compression relative to revenue growth
- Return on equity and working capital efficiency - must improve materially to restore shareholder value creation
- Operating cash flow trend
- Non-operating expenses impacting net income
Nl Industries Inc. (NL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 10.65x current ratio provides a solid financial cushion.
NL Profit Margin, ROE & Profitability Analysis
NL vs Materials Sector: How Nl Industries Inc. Compares
How Nl Industries Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nl Industries Inc. Stock Overvalued? NL Valuation Analysis 2026
Based on fundamental analysis, Nl Industries Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nl Industries Inc. Balance Sheet: NL Debt, Cash & Liquidity
NL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nl Industries Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.05 indicates the company is currently unprofitable.
NL Revenue Growth, EPS Growth & YoY Performance
NL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $40.3M | $667.0K | $0.01 |
| Q3 2025 | $33.7M | -$6.8M | $-0.14 |
| Q2 2025 | $35.9M | $355.0K | $0.01 |
| Q1 2025 | $38.0M | $667.0K | $0.01 |
| Q3 2024 | $33.7M | -$69.0K | $-0.20 |
| Q2 2024 | $35.9M | -$3.1M | $-0.06 |
| Q1 2024 | $38.0M | -$6.7M | $-0.14 |
| Q3 2023 | $40.4M | -$69.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nl Industries Inc. Dividends, Buybacks & Capital Allocation
NL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nl Industries Inc. (CIK: 0000072162)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 8-K | nl-20260519x8k.htm | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_120542.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_120515.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_120547.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_120517.xml | View → |
❓ Frequently Asked Questions about NL
What is the AI rating for NL?
Nl Industries Inc. (NL) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NL's key strengths?
Claude: Zero long-term debt with strong liquidity position ($101.9M cash, 10.65x current ratio). Revenue growth of 8.5% YoY demonstrates maintained market demand. ChatGPT: Debt-free balance sheet with strong liquidity (current/quick ratios). Positive operating income and solid gross margin profile.
What are the risks of investing in NL?
Claude: Negative operating cash flow (-$3.5M) despite positive net income signals unsustainable profitability or working capital distress. Declining net income (-6.9% YoY) and catastrophic EPS decline (-155.8% YoY) despite revenue growth indicates severe operational inefficiency. ChatGPT: Persistent net losses despite positive operating profit. Negative operating cash flow and FCF margin.
What is NL's revenue and growth?
Nl Industries Inc. reported revenue of $40.6M.
Does NL pay dividends?
Nl Industries Inc. pays dividends, with $4.9M distributed to shareholders in the trailing twelve months.
Where can I find NL SEC filings?
Official SEC filings for Nl Industries Inc. (CIK: 0000072162) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NL's EPS?
Nl Industries Inc. has a diluted EPS of $0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Nl Industries Inc. has a C grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NL stock overvalued or undervalued?
Valuation metrics for NL: ROE of 1.2% (sector avg: 14%), net margin of 10.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NL's AI grade for 2026?
Our dual AI analysis gives Nl Industries Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NL's free cash flow?
Nl Industries Inc.'s operating cash flow is $-3.5M, with capital expenditures of $404.0K. FCF margin is -9.7%.
How does NL compare to other Materials stocks?
Vs Materials sector averages: Net margin 10.7% (avg: 10%), ROE 1.2% (avg: 14%), current ratio 10.65 (avg: 1.6).