📊 NL Key Takeaways
Is Nl Industries Inc. (NL) a Good Investment?
NL Industries is experiencing a severe operational deterioration despite top-line revenue growth, evidenced by a $37.8M net loss, negative $36.4M operating cash flow, and a critical disconnect between operating income and cash generation. The fortress balance sheet and zero debt provide a financial cushion, but cannot offset the fundamental profitability crisis and projected 2.75-year cash runway at current burn rates.
Core operations show resilience with 8.5% revenue growth and positive operating income, supported by a debt-free balance sheet and strong liquidity. However, sizable below-the-line losses translate to negative net income and negative operating cash flow, pressuring sustainability. Wait for clearer conversion of operating profit into cash and reduced non-operating drag before a more constructive stance.
Why Buy Nl Industries Inc. Stock? NL Key Strengths
- Zero long-term debt and pristine balance sheet with $358.8M equity
- Exceptional liquidity with $110.6M cash and 7.77x current ratio providing runway
- Revenue growth of 8.5% year-over-year demonstrates market demand for products
- Positive gross margin of 30.4% indicates viable core product economics
- Debt-free balance sheet with strong liquidity (current/quick ratios)
- Positive operating income and solid gross margin profile
- Healthy cash balance providing runway
NL Stock Risks: Nl Industries Inc. Investment Risks
- Severe cash hemorrhage with negative free cash flow of $40.1M annually consuming cash reserves
- Company unprofitable with net loss of $37.8M and deteriorating earnings (EPS down 155.8% YoY)
- Critical red flag: positive operating income of $10.7M yet negative operating cash flow of $36.4M indicates severe working capital distress, potential receivables collection issues, or significant non-cash charges
- Negative net margin of -23.9% means company loses $0.24 per dollar of revenue
- Limited financial runway before equity depletion forces strategic actions
- Persistent net losses despite positive operating profit
- Negative operating cash flow and FCF margin
- Large non-operating charges creating a gap between operating and net income
Key Metrics to Watch
- Operating cash flow inflection - understanding root cause of negative OCF is critical
- Working capital trends, accounts receivable days, and inventory management
- Path to operating profitability and FCF breakeven timeline
- Quarterly cash burn rate acceleration or deceleration
- Operating cash flow trend
- Non-operating expenses impacting net income
Nl Industries Inc. (NL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 7.77x current ratio provides a solid financial cushion.
NL Profit Margin, ROE & Profitability Analysis
NL vs Materials Sector: How Nl Industries Inc. Compares
How Nl Industries Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nl Industries Inc. Stock Overvalued? NL Valuation Analysis 2026
Based on fundamental analysis, Nl Industries Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nl Industries Inc. Balance Sheet: NL Debt, Cash & Liquidity
NL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nl Industries Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.05 indicates the company is currently unprofitable.
NL Revenue Growth, EPS Growth & YoY Performance
NL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $33.7M | -$6.8M | $-0.14 |
| Q2 2025 | $35.9M | $355.0K | $0.01 |
| Q1 2025 | $38.0M | $667.0K | $0.01 |
| Q3 2024 | $33.7M | -$69.0K | $-0.20 |
| Q2 2024 | $35.9M | -$3.1M | $-0.06 |
| Q1 2024 | $38.0M | -$6.7M | $-0.14 |
| Q3 2023 | $40.4M | -$69.0K | $0.00 |
| Q2 2023 | $36.6M | -$3.1M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nl Industries Inc. Dividends, Buybacks & Capital Allocation
NL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nl Industries Inc. (CIK: 0000072162)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NL
What is the AI rating for NL?
Nl Industries Inc. (NL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NL's key strengths?
Claude: Zero long-term debt and pristine balance sheet with $358.8M equity. Exceptional liquidity with $110.6M cash and 7.77x current ratio providing runway. ChatGPT: Debt-free balance sheet with strong liquidity (current/quick ratios). Positive operating income and solid gross margin profile.
What are the risks of investing in NL?
Claude: Severe cash hemorrhage with negative free cash flow of $40.1M annually consuming cash reserves. Company unprofitable with net loss of $37.8M and deteriorating earnings (EPS down 155.8% YoY). ChatGPT: Persistent net losses despite positive operating profit. Negative operating cash flow and FCF margin.
What is NL's revenue and growth?
Nl Industries Inc. reported revenue of $158.3M.
Does NL pay dividends?
Nl Industries Inc. pays dividends, with $17.6M distributed to shareholders in the trailing twelve months.
Where can I find NL SEC filings?
Official SEC filings for Nl Industries Inc. (CIK: 0000072162) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NL's EPS?
Nl Industries Inc. has a diluted EPS of $-0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Nl Industries Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NL stock overvalued or undervalued?
Valuation metrics for NL: ROE of -10.5% (sector avg: 14%), net margin of -23.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NL stock in 2026?
Our dual AI analysis gives Nl Industries Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NL's free cash flow?
Nl Industries Inc.'s operating cash flow is $-36.4M, with capital expenditures of $3.7M. FCF margin is -25.4%.
How does NL compare to other Materials stocks?
Vs Materials sector averages: Net margin -23.9% (avg: 10%), ROE -10.5% (avg: 14%), current ratio 7.77 (avg: 1.6).