Northern Story

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NTIC -- USA Stock  

USD 10.17  0.19  1.90%

Northern Technologies Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 5.19 Million. The current year Current Ratio is expected to grow to 5.02, whereas Average Assets are forecasted to decline to about 68 M. Despite somewhat strong technical indicators, Northern Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to a short-term swings for the investors. Northern Technologies Internati probability of bankruptcy is over 52 percent. Will investors continue to be optimistic, or should we expect a sell-off in December?
Published over two weeks ago
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Should you pay attention to changing Northern Technologies (NASDAQ:NTIC) fundamentals?
We consider Northern Technologies not too volatile. Northern Technologies has Sharpe Ratio of 0.0177, which conveys that the firm had 0.0177% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Northern Technologies, which you can use to evaluate future volatility of the firm. Please verify Northern Technologies Internati Mean Deviation of 1.5, downside deviation of 2.09, and Risk Adjusted Performance of 0.0097 to check out if the risk estimate we provide is consistent with the expected return of 0.0443%.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Northern Technologies income statement, its balance sheet, and the statement of cash flows. Potential Northern Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Northern Technologies investors may use each financial statement separately, they are all related. The changes in Northern Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northern Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Northern Technologies fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Northern Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Northern Technologies shares is the value that is considered the true value of the share. If the intrinsic value Northern is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Northern Technologies. Please read more on our fundamental analysis page.

Are Northern Technologies Earnings Expected to grow?

The future earnings power of Northern Technologies involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Northern Technologies factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Northern Technologies stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Northern expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Northern Technologies 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. Northern Technologies 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. Northern one year expected dividend income is about $0.18 per share.
Northern Technologies Dividend Yield is projected to increase slightly based on the last few years of reporting. The past year's Dividend Yield was at 0.016. The current year Dividends per Basic Common Share is expected to grow to 0.16, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (1.3 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-1.2 M-1.3 M
Dividend Yield 0.016  0.0187 
Dividends per Basic Common Share 0.13  0.16 
Investing in dividend-paying stocks, such as Northern Technologies Internati is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Northern Technologies 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 Northern Technologies. 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 Northern utilizes its cash?

To perform a cash flow analysis of Northern Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Northern Technologies is receiving and how much cash it distributes out in a given period. The Northern Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Northern Technologies Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 4.91 Million

Northern Technologies Gross Profit

Northern Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Northern Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Northern Technologies Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Acquisition by Matthew Wolsfeld of 55244 shares of Northern Technologies subject to Rule 16b-3

Legal trades by Northern Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Northern insider trading alert for grant of stock option (right to buy) by Matthew Wolsfeld, CFO and Corporate Secretary, on 3rd of September 2020. This event was filed by Northern Technologies Int with SEC on 2020-09-03. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Northern Technologies Investors

The current indifference towards the small price fluctuations of Northern Technologies Internati may encourage investors to take a closer look at the firm as it is trading at a share price of 9.11 on slow start in trading volume. The company executives did not add any value to Northern Technologies investors in October. However, most investors can still diversify their portfolios with Northern Technologies Internati to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.51. The current volatility is consistent with the ongoing market swings in October 2020 as well as with Northern Technologies unsystematic, company-specific events.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Northern Technologies has an asset utilization ratio of 99.98 percent. This suggests that the company is making $1.0 for each dollar of assets. An increasing asset utilization means that Northern Technologies Internati is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
32.2 M
Assets Non Current
38.1 M
Current Assets32.18 Million43.58
Assets Non Current38.09 Million51.59
Goodwill1.25 Million1.69
Tax Assets2.31 Million3.13

Anything left for Northern Technologies after the slip?

Northern Technologies current maximum drawdown builds up over 8.74. Northern Technologies Internati currently demonstrates below-verage downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of -0.02. However, we do advice investors to further question Northern Technologies Internati expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Northern Technologies

When is the right time to buy or sell Northern Technologies Internati? Buying stocks such as Northern Technologies isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor short any shares of Northern Technologies at this time. The Northern Technologies Internati risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Northern Technologies.

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 Gabriel Shpitalnik do not own shares of Northern Technologies Internati. Please refer to our Terms of Use for any information regarding our disclosure principles.

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