📊 NTIC Key Takeaways
Is NTIC a Good Investment? Thesis Analysis
Northern Technologies is experiencing severe profitability deterioration with net income collapsing 98.2% YoY while revenue contracted. The company's negative free cash flow of -$479.7K indicates it is burning cash faster than operations can sustain, despite maintaining adequate liquidity. Core business fundamentals are weakening with extremely thin margins (1% net margin) and minimal returns on capital (0.3% ROE, 0.2% ROA).
Why Buy NTIC? Key Strengths
- Strong balance sheet with low leverage (0.01x debt/equity ratio) and minimal long-term debt of $914.4K
- Adequate liquidity with current ratio of 1.77x and cash position of $6.4M providing runway
- Reasonable gross margin of 36% suggests some pricing power in the core business
NTIC Investment Risks to Consider
- Severe profitability collapse with net income down 98.2% YoY indicates fundamental operational issues
- Negative free cash flow of -$479.7K means the company is consuming cash despite positive operating cash flow, unsustainable trajectory
- Revenue decline of 1% combined with margin compression suggests weak demand and operational efficiency problems
- Extremely low net margin of 1% and minimal ROE/ROA indicate capital is not being deployed effectively
Key Metrics to Watch
- Quarterly revenue trends and gross margin stability to assess business stabilization
- Free cash flow trajectory and whether operating cash flow can exceed capital expenditures
- Operating margin recovery and cost structure management initiatives
NTIC Financial Metrics
💡 AI Analyst Insight
NORTHERN TECHNOLOGIES INTERNATIONAL CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
NTIC Profitability Ratios
NTIC vs Default Sector
How NORTHERN TECHNOLOGIES INTERNATIONAL CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NTIC Overvalued or Undervalued?
Based on fundamental analysis, NORTHERN TECHNOLOGIES INTERNATIONAL CORP has mixed fundamental signals relative to the Default 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.
NTIC Balance Sheet & Liquidity
NTIC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NORTHERN TECHNOLOGIES INTERNATIONAL CORP's revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.55 reflects profitable operations.
NTIC Growth Metrics (YoY)
NTIC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $21.3M | $237.8K | $0.03 |
| Q3 2025 | $20.7M | $121.8K | $0.01 |
| Q2 2025 | $19.1M | $434.3K | $0.04 |
| Q1 2025 | $20.2M | $561.1K | $0.06 |
| Q3 2024 | $20.7M | $976.6K | $0.10 |
| Q2 2024 | $18.3M | $411.5K | $0.04 |
| Q1 2024 | $20.0M | $502.2K | $0.05 |
| Q3 2023 | $19.0M | $1.0M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NTIC Capital Allocation
NTIC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NORTHERN TECHNOLOGIES INTERNATIONAL CORP (CIK: 0000875582)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NTIC
What is the AI rating for NTIC?
NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTIC's key strengths?
Claude: Strong balance sheet with low leverage (0.01x debt/equity ratio) and minimal long-term debt of $914.4K. Adequate liquidity with current ratio of 1.77x and cash position of $6.4M providing runway.
What are the risks of investing in NTIC?
Claude: Severe profitability collapse with net income down 98.2% YoY indicates fundamental operational issues. Negative free cash flow of -$479.7K means the company is consuming cash despite positive operating cash flow, unsustainable trajectory.
What is NTIC's revenue and growth?
NORTHERN TECHNOLOGIES INTERNATIONAL CORP reported revenue of $23.3M.
Does NTIC pay dividends?
NORTHERN TECHNOLOGIES INTERNATIONAL CORP pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find NTIC SEC filings?
Official SEC filings for NORTHERN TECHNOLOGIES INTERNATIONAL CORP (CIK: 0000875582) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NTIC's EPS?
NORTHERN TECHNOLOGIES INTERNATIONAL CORP has a diluted EPS of $0.03.
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 rating reflects both perspectives for balanced insights.
Is NTIC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NORTHERN TECHNOLOGIES INTERNATIONAL CORP has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NTIC stock overvalued or undervalued?
Valuation metrics for NTIC: ROE of 0.3% (sector avg: 15%), net margin of 1.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NTIC stock in 2026?
Our dual AI analysis gives NORTHERN TECHNOLOGIES INTERNATIONAL CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NTIC's free cash flow?
NORTHERN TECHNOLOGIES INTERNATIONAL CORP's operating cash flow is $341.9K, with capital expenditures of $821.6K. FCF margin is -2.1%.
How does NTIC compare to other Default stocks?
Vs Default sector averages: Net margin 1.0% (avg: 12%), ROE 0.3% (avg: 15%), current ratio 1.77 (avg: 1.8).