NL Industries Story

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NL -- USA Stock  

USD 4.79  0.06  1.24%

NL Industries Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 354.68 Million. Invested Capital Average is expected to hike to about 362.5 M this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 28.3 M. This post will summarize NL Industries. We will evaluate why we are still optimistic in anticipation of a recovery. In this post, I will also go over some essential variables affecting NL Industries' products, and show how it may impact NL Industries outlook for active traders this year.
Published over three weeks ago
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NL Industries (NYSE:NL) continues to hike
On a scale of 0 to 100, NL Industries holds a performance score of 8. The company owns a Beta (Systematic Risk) of 0.2878, which conveys not very significant fluctuations relative to the market. Let's try to break down what NL Industries's beta means in this case. As returns on the market increase, NL Industries returns are expected to increase less than the market. However, during the bear market, the loss on holding NL Industries will be expected to be smaller as well. Although it is vital to follow NL Industries existing price patterns, it is good to be conservative about what you can do with the information regarding equity price patterns. The way in which we are estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for NL Industries, which you can use to evaluate the performance of the firm. Please exercises NL Industries maximum drawdown, and the relationship between the information ratio and expected short fall to make a quick decision on whether NL Industries current price history will revert.

And What about dividends?

A dividend is the distribution of a portion of NL Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. NL Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. NL Industries one year expected dividend income is about $0.04 per share.
Dividend Yield is expected to hike to 0.0419 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (23.6 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-21.9 M-23.6 M
Dividend Yield 0.0405  0.0419 
Dividends per Basic Common Share 0.45  0.45 
Investing in stocks that pay dividends, such as stock of NL Industries, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in NL Industries must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for NL Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is NL Industries's Liquidity

NL Industries financial leverage refers to using borrowed capital as a funding source to finance NL Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NL Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between NL Industries's total debt and its cash.

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

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NL Industries has an asset utilization ratio of 33.05 percent. This denotes that the company is making $0.33 for each dollar of assets. An increasing asset utilization means that NL Industries is more efficient with each dollar of assets it utilizes for everyday operations.

NL Industries implied volatility may change after the hike

The semi deviation is down to 3.66 as of today. 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 Takeaway

While many of the other players under the security & protection services industry are still a bit expensive, NL Industries may offer a potential longer-term growth to stakeholders. All things considered, as of the 20th of September 2020, we believe NL Industries is currently overvalued. It slowly supersedes the market and projects below average chance of financial distress in the next two years. Our latest 30 days buy vs. sell advice on the company is Sell.

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 Raphi Shpitalnik 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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