NL Industries, Inc. (NL) AI Stock Analysis

NL Industries, Inc., operating through its subsidiary CompX International Inc., manufactures and distributes mechanical and electronic cabinet locks and other locking mechanisms across the United States and globally. Its security products include disc tumbler locks, pin tumbler mechanisms, CompX eLock, and StealthLock for applications like mailboxes, medical cabinetry, and vending machines. The company also produces original equipment and aftermarket parts for performance and ski/wakeboard boats, such as stainless steel exhaust headers, gauges, controls, trim tabs, and steering wheels. Additionally, NL Industries offers insurance brokerage and risk management services, supplying original equipment manufacturers and distribution channels.

From FY2020 to FY2025, revenue achieved a 5-year CAGR of 6.7%. Revenue rose 22.9% in FY2021 to $140.8M, reached $166.6M in FY2022, and declined 3.2% in FY2023 to $161.3M. In FY2024, revenue fell 9.5% to $145.9M, while operating margin reached 26.0% and net income was $67.2M. In FY2025, revenue increased 8.5% to $158.3M, but operating margin dropped to 6.0% and net income turned to -$37.8M. Over the trailing twelve months, revenue was $161.8M with an operating margin of 15.4% and an EPS of -$0.52. For the latest quarter ending June 30, 2026, revenue grew 8.0% year-over-year while quarterly earnings grew 2421.0%.

As of June 30, 2026, NL Industries held $107.0M in cash and short-term investments alongside total debt of $1.4M, leaving net cash at $105.6M. Shareholders' equity was $363.0M out of $470.6M in total assets, yielding a debt-to-equity ratio of 0.00 and a current ratio of 9.02. In FY2025, operating cash flow was -$36.4M and free cash flow was -$40.1M after $3.7M in capital expenditures. Cash outflows also included $27.9M in dividends paid.

At a last close of $6.63, NL Industries has an enterprise value of $233.8M and a market cap of $324.2M. Its EV to EBITDA multiple is 2.6x, compared to the median of 13.9x for its US-listed Industrials peers. The forward P/E ratio is 26.2x versus the peer median of 17.2x, with a price-to-book ratio of 0.9x and a price-to-sales ratio of 2.0x. Over the past year, the stock rose 20.4%, outperforming the S&P 500 return of 16.8%, but its 5-year return of 61.4% trailed the S&P 500 return of 83.0%.

NL Industries pays a quarterly dividend totaling an annual forward payout of $0.40 per share, delivering a dividend yield of 6.03%. The company has paid dividends for 7 consecutive years and generated a 5-year annualized dividend growth rate of 28.9%. In FY2025, dividends paid were $27.9M, leading to a payout ratio of 175.0%. Its last ex-dividend date was September 3, 2026.

One analyst covers the company, projecting next fiscal year EPS of $0.87, representing estimated EPS growth of 53.8%, alongside a revenue estimate of $0. The mean price target is $6.00, which sits 9.5% below the last close of $6.63. Over the last four quarters, the company recorded 0 EPS beats. The next earnings date is scheduled for November 5, 2026.

This page is an AI-written research summary of NL Industries, Inc. (NL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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