NL Industries Story

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NL -- USA Stock  

USD 4.43  0.20  4.32%

As many of us are excited about industrials space, it is fair to summarize NL Industries. We are going to cover the possibilities of making NL Industries into your portfolio. Is the firm operations in 2020 sustainable? Here we are going to cover NL Industries perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Is NL Industries (NYSE:NL) ready for a correction?
The company reports 500 K of total liabilities with total debt to equity ratio (D/E) of 0.0, which may suggest NL Industries is not taking enough advantage from financial leverage. We provide trade recommendation to complement the latest expert consensus on NL Industries. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at this moment.
We determine the current worth of NL Industries using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NL Industries based exclusively on its fundamental and basic technical indicators. By analyzing NL Industries's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of NL Industries's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of NL Industries. We calculate exposure to NL Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NL Industries's related companies.

NL Industries Investment Alerts

NL Industries investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring NL Industries performance across your portfolios.Please check all investment alerts for NL Industries

NL Industries Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare NL Industries value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NL Industries competition to find correlations between indicators driving the intrinsic value of NL Industries.

How NL Industries utilizes its cash?

To perform a cash flow analysis of NL Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash NL Industries is receiving and how much cash it distributes out in a given period. The NL Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. NL Industries Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 26.54 Million

Breaking it down a bit more

NL Industries generated the yearly revenue of 115.45 M. Reported Net Income was 11.26 M with gross profit of 38.96 M.
 2017 2018 2019 2020 (projected)
Interest Expense30 K37 K681 K639.36 K
Gross Profit34.83 M38.27 M38.96 M38.14 M

Margins Breakdown

NL Industries profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or NL Industries itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of NL Industries profit margins.
Operating Margin15.33
EBITDA Margin0.28
Gross Margin0.34
Profit Margin0.23

NL Industries Net Income Per Employee is increasing over the last 8 years. The previous year's value of NL Industries Net Income Per Employee was 50,977. Also, NL Industries Revenue Per Employee is increasing over the last 8 years. The previous year's value of NL Industries Revenue Per Employee was 245,067.

Will NL Industries new hike continue?

New value at risk is at -5.07. NL Industries shows above-average downside volatility for the selected time horizon. We advise investors to inspect NL Industries further and ensure that all market timing and asset allocation strategies are consistent with the estimation of NL Industries future alpha.

Our Final Take On NL Industries

While few other entities within the security & protection services industry are still a little expensive, even after the recent corrections, NL Industries may offer a potential longer-term growth to stakeholders. In closing, as of the 18th of September 2020, our ongoing 30 days buy-hold-sell recommendation on the company is Strong Sell. We believe NL Industries is overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of NL Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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