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NL:NYSENL Industries, Inc. Analysis

Data as of 2026-05-19 - not real-time

$7.15

Latest Price

7/10Risk

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 year
Neutral
Model confidence: 6/10

Key Factors

  • Bullish technicals (price above SMAs, bullish MACD)
  • Overvalued relative to DCF fair value
  • High short‑term volatility

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Expected earnings improvement (forward EPS $0.86)
  • Unsustainable dividend payout
  • Continued cash strength but negative profitability

Long Term

> 3 years
Positive
Model confidence: 4/10

Key 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

Revenue Growth0.70%
Profit Margin-21.53%
P/E Ratio8.3
ROE-7.95%
ROA3.28%
Debt/Equity0.38
P/B Ratio1.0
Op. Cash Flow$7.5M
Free Cash Flow$15.5M
Industry P/E29.2

Technical Analysis

TrendNeutral
RSI67.9
Support$5.75
Resistance$8.60
MA 20$6.17
MA 50$5.94
MA 200$5.97
MACDBullish
VolumeIncreasing
Fear & Greed Index89.18

Valuation

Fair Value$6.30
GradeOvervalued
TypeValue
Dividend Yield5.63%

Risk Assessment

Beta0.92
Volatility62.78%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

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.