NL:NYSENL Industries, Inc. Analysis
Data as of 2026-05-19 - not real-time
Latest Price
Risk Level: Medium
Executive Summary
NL Industries trades at $7.15, comfortably above its 20‑day ($6.17), 50‑day ($5.94) and 200‑day ($5.97) moving averages, and the MACD is in a bullish crossover (line $0.29 vs. signal $0.13). However, the 30‑day volatility is extremely high at 62.8% and the stock’s price exceeds the DCF‑derived fair value of $6.30, indicating an overvalued market price. The company’s forward P/E of 8.31 is well below the industry average of 29.2, but trailing earnings are negative (EPS –$0.69) and profit margin sits at –21.5%, raising concerns about earnings sustainability. A 5.63% dividend yield looks attractive, yet the payout ratio of 175% is unsustainable given the current loss-making profile. Recent news confirms a quarterly dividend of $0.10 and an upcoming earnings release, but no earnings guidance has been provided.
Market Outlook
Short Term
< 1 yearKey Factors
- Bullish technicals (price above SMAs, bullish MACD)
- Overvalued relative to DCF fair value
- High short‑term volatility
Medium Term
1–3 yearsKey Factors
- Expected earnings improvement (forward EPS $0.86)
- Unsustainable dividend payout
- Continued cash strength but negative profitability
Long Term
> 3 yearsKey Factors
- Potential turnaround with low forward P/E vs. industry
- Strong balance sheet (low debt, ample cash)
- Exposure to diversified industrial security markets
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.