Northern Story

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NTIC -- USA Stock  

USD 13.41  0.15  1.11%

Northern Technologies is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 7th of January 2021. Northern Technologies Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 2.78 Million. The current year Earnings before Tax is expected to grow to about 1.6 M, whereas Average Assets are forecasted to decline to about 69.6 M. While some millenniums are indifferent towards basic materials space, it makes sense to go over Northern Technologies Internati as a unique investment alternative. What exactly are Northern Technologies shareholders getting in February?
Published over a week ago
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How much will Northern Technologies owe in February?
The entity currently holds 658.79 K in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest Northern Technologies is not taking enough advantage from borrowing. The firm has a current ratio of 5.34, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of (2.81) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (5.63) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.06.
Northern Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Northern Technologies, including all of Northern Technologies's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Northern Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Northern Technologies debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Northern Total Debt

Northern Technologies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Northern Technologies has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Northern Technologies balance sheet include debt obligations and money owed to different Northern Technologies vendors, workers, and loan providers. Below is the chart of Northern main long-term debt accounts currently reported on its balance sheet.
You can use Northern Technologies Internati financial leverage analysis tool to get a better grip on understanding its financial position

How important is Northern Technologies's Liquidity

Northern Technologies financial leverage refers to using borrowed capital as a funding source to finance Northern Technologies Internati ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Northern Technologies 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 Northern Technologies's total debt and its cash.

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 price rise of Northern Technologies Internati may encourage investors to take a closer look at the firm as it is trading at a share price of 10.97 on 13,000 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.38. The current volatility is consistent with the ongoing market swings in December 2020 as well as with Northern Technologies unsystematic, company-specific events.

Liabilities Breakdown

Total Liabilities6.94 Million
Current Liabilities6.62 Million
Long-Term Liabilities251,652
Tax Liabilities385,788

Will Northern pull back in February 2021?

The treynor ratio is down to 0.69 as of today. As of the 6th of January, Northern Technologies secures the Risk Adjusted Performance of 0.201, downside deviation of 2.04, and Mean Deviation of 1.63. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Northern Technologies, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We have analyze and collected data for nineteen technical drivers for Northern Technologies, which can be compared to its peers in the industry. Please verify Northern Technologies information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Northern Technologies Internati is priced some-what accurately, providing market reflects its recent price of 10.97 per share. Given that Northern Technologies has jensen alpha of 0.3645, we recommend you to check Northern Technologies's last-minute market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Northern Technologies

Whereas some firms within the specialty chemicals industry are still a little expensive, even after the recent corrections, Northern Technologies may offer a potential longer-term growth to investors. While some short-term oriented investors may not share our view, we believe it may be a good time to trade new shares of Northern.

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 Northern Technologies Internati. Please refer to our Terms of Use for any information regarding our disclosure principles.

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