NL

NL Industries

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Industrials

industry

Security & Protection Services

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

NL Industries operates within the security and protection services segment, providing specialized industrial and safety-related solutions that generate revenue through service contracts and product sales tied to compliance and risk mitigation. Cash flow is driven by recurring customer relationships in regulated environments where safety standards create ongoing demand. The moat, to the extent it exists, comes from embedded client relationships and industry-specific expertise rather than pricing power, which is reflected in the current -10.50% Operating Margin. Long-term value creation depends on converting those relationships into consistently positive returns on invested capital, something the current -11.10% ROIC indicates has not yet been achieved.

 


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VALUATION

P/E

-

Market Cap ($M USD)

$283

Forward P/E

6.7

PEG

-

PRICE TO SALES

1.8

PRICE TO BOOK

0.8

EV / EBITDA

-3.7

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

6.40%

Annual Payout

$0.40

Payout Ratio

-

Consecutive Years of Dividend Growth

2

5-Year Dividend Growth Rate

10.80%

Financial Health & Profitability

Earnings Per Share

-$0.77

Next Year EPS Growth Estimate

$0.87

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

-10.50%

FREE CASH FLOW

Operating Margin

6.00%

Debt-to-Equity

0

Piotroski F-Score

3

Altman Z-Score

3.5

Return on Invested Capital (ROIC)

-11.10%

Current Ratio

7.8

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

NL Industries screens like a statistically cheap but fundamentally broken industrial name. A Forward P/E of 6.7 would normally scream deep value, yet it sits against EPS of -3.7, ROIC of -11.10%, and an Operating Margin of -10.50%, meaning the “cheap” multiple is based on fragile forward assumptions rather than proven profitability. The Altman Z-Score of 3.5 suggests low immediate bankruptcy risk, reinforced by a massive Current Ratio of 7.8 and modest Debt/Equity of 6.00%, but the Piotroski F-Score of 3 signals weak underlying business momentum. This is not a clean GARP setup — it’s a balance-sheet-stable company with poor operating economics trading at a valuation that implies a turnaround the numbers do not yet justify.

AI Exposure / Tech Reliance

As a Security & Protection Services company within Industrials, AI integration would likely center on automation, monitoring systems, and predictive risk analytics. The sector can benefit from technology-driven efficiency gains, but execution matters, especially when Operating Margin sits at -10.50%. Without evidence of profitable deployment, tech adoption alone will not fix negative ROIC of -11.10%.

The Bull Case

A deep value investor could argue the market cap of $283M against a Price/Book of 0.8 suggests tangible asset backing and limited downside if assets are fairly valued. The Forward P/E of 6.7 implies a meaningful earnings recovery relative to EPS Next Year (Est.) of -$0.77 compared to current EPS of -3.7, indicating expectations of narrowing losses. The Altman Z-Score of 3.5 and Current Ratio of 7.8 provide balance sheet comfort, reducing insolvency risk while waiting for operational improvement. Even with a weak Piotroski F-Score of 3 and negative ROIC of -11.10%, a contrarian could see asymmetric upside if margins normalize from the current -10.50% level and sentiment shifts from a Consensus Rating of 1.60% with a Mean Consensus Target Price of 5.

The Bear Case

The bear case is straightforward: this is a company destroying capital, with ROIC at -11.10% and Operating Margin at -10.50%, meaning growth would compound losses rather than value. EPS of -3.7 and projected EPS Next Year (Est.) of -$0.77 still reflect unprofitability, while a missing PEG Forward underscores the absence of credible growth visibility. Short % of Float at 10.80% shows a meaningful portion of the market is positioned for downside, and a Piotroski F-Score of 3 reinforces weak financial quality. Even with Debt/Equity at 6.00% and strong liquidity, the core issue is structural profitability, not solvency — and until that flips positive, the stock remains a speculative turnaround rather than an investable compounder.

Market Sentiment & Smart Money

Short Interest %

1.60%

Analyst Consensus

5

Average Analyst Price Target

$6.00

Institutional Ownership %

12.00%

1-Year Beta

0.94

Insider Buying % (6 Mo)

83.00%%

Distance to 52-Week High

62.70%

Distance to 52-Week Low

115.30%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.