One-glance verdict
Within fair range
$8.14 our estimate vs market $7.45
Wall Street consensus: $13.00 (59.6% higher than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
Northern Technologies International Corporation
NTIC · NGM · Basic Materials · Specialty Chemicals
Current price
$7.45
52-week range
$7.35 - $10.03
Market cap
$70.72M
Balance sheet
Distressed
-9.96x Concerning
Net debt $8.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 9.0% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Net debt grew 427.6% over 3 years.
- Risk Return on equity was -0.1% last year — the company lost money on shareholders' equity.
What this company does
Northern Technologies International Corporation
Northern Technologies International Corporation (NTIC) makes and sells special products that stop metal from rusting and corroding, which is important for many industries like cars and oil. Most of their money comes from selling these rust-prevention solutions, which means they get paid to help other businesses protect their valuable metal parts. This focus on preventing rust helps ensure their products are essential for keeping equipment in good working order across different global markets.
How the company got here
Northern Technologies International Corporation (NTIC) was founded in 1970. [1] Initially, the company's primary business was in oil analyzer instruments. [1] Over time, NTIC evolved and expanded its focus. In 1993, the company changed its name to Northern Technologies International Corporation and grew beyond its original oil analyzer business. [1] It has since become a global provider of corrosion-inhibiting products and services. [1] NTIC also developed environmentally beneficial clean technologies, including certified compostable bioplastics through its Natur-Tec line of products. [1] The company's business model centers on commercializing these clean and green technologies in niche markets. [1]
What it actually does
NTIC develops and markets proprietary, environmentally beneficial products and services worldwide. [2] The company's core business involves providing solutions for corrosion prevention and offering bio-based, compostable plastics. [13] These products and services are designed to be eco-friendly and cater to both industrial and consumer applications. [1] NTIC operates through a network of joint ventures, distributors, and agents to reach customers in over 70 countries. [1] The company's offerings help industries reduce waste, preserve metal assets, and develop sustainable alternatives to conventional plastics. [21]
ZERUST
The ZERUST segment is Northern Technologies International Corporation's primary business, generating the vast majority of the company's revenue. [2] This segment focuses on developing and marketing proprietary, environmentally beneficial products and services for corrosion prevention. [13] ZERUST offers a range of products such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions specifically for the oil and gas industry. [1] These solutions utilize Volatile Corrosion Inhibitor (VCI) technology to protect metal parts during storage, export, or transit without the need for oils or greases. [6] ZERUST products help businesses simplify packaging, eliminate degreasing steps, and reduce losses due to corrosion damage. [6] The ZERUST brand serves various markets including automotive, general industrial, mechanical, mining, agricultural, and oil and gas. [1]
Natur-Tec
The Natur-Tec segment focuses on developing and marketing a portfolio of bio-based and certified compostable polymer resin compounds and finished products. [2] These materials are designed as sustainable alternatives to conventional, petroleum-based plastics. [10] Natur-Tec offers resins for flexible film, injection molding, and extrusion, as well as finished products like trash bags, agricultural films, and single-use disposable items under the Natur-Bag brand. [3, 10] The company's proprietary ReX (Reactive Extrusion) technology is used to produce high-performance biopolymers that integrate into the circular economy. [10] Natur-Tec products are certified compostable according to international standards and are used in applications such as food service, retail, and consumer packaging. [11] This segment aims to help industries and consumers reduce their carbon footprint and achieve sustainability goals. [20]
What management is betting on now
NTIC's management is focused on continuing to grow its core ZERUST and Natur-Tec businesses by leveraging its expertise in materials science and environmental technologies. [1, 10] The company is investing in research and development to innovate new products and improve existing ones, particularly in the area of sustainable and bio-based materials. [8, 20] Management aims to expand the company's global reach through its network of joint ventures and distributors, ensuring continued top-line growth and customer satisfaction. [1, 21] NTIC is also focused on operational efficiency and quality management, as evidenced by its ISO 9001:2015 certification, to reinvest in new products and services essential for retaining customers. [21] The company is committed to developing solutions that address climate change, use renewable materials, and enable sustainable waste management. [20]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-2.48M
FY2025 Q1
$1.18M
FY2025 Q2
$293.12K
FY2025 Q3
$-171.25K
FY2025 Q4
$-1.40M
FY2026 Q1
$-479.72K
FY2026 Q2
$-1.91M
FY2026 Q3
$576.75K
Revenue
$24.22M
Net income
$-263.29K
Diluted EPS
-0.03
Operating cash flow
$623.21K
Free cash flow
$576.75K
Fetching…
Sources
Revenue
$22.00M
Net income
$-35.32K
Diluted EPS
0.00
Operating cash flow
$-1.72M
Free cash flow
$-1.91M
Fetching…
Sources
Revenue
$23.31M
Net income
$237.82K
Diluted EPS
0.03
Operating cash flow
$341.91K
Free cash flow
$-479.72K
Fetching…
Sources
Revenue
$22.32M
Net income
$-1.10M
Diluted EPS
-0.11
Operating cash flow
$-1.37M
Free cash flow
$-1.40M
Fetching…
Sources
Revenue
$21.51M
Net income
$121.78K
Diluted EPS
0.01
Operating cash flow
$609.71K
Free cash flow
$-171.25K
Fetching…
Sources
Revenue
$19.07M
Net income
$434.32K
Diluted EPS
0.04
Operating cash flow
$803.67K
Free cash flow
$293.12K
Fetching…
Sources
Revenue
$21.34M
Net income
$561.09K
Diluted EPS
0.06
Operating cash flow
$2.40M
Free cash flow
$1.18M
Fetching…
Sources
Revenue
$23.35M
Net income
$1.84M
Diluted EPS
0.19
Operating cash flow
$-1.70M
Free cash flow
$-2.48M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.14 vs current price $7.45
Wall Street consensus is the average analyst price target: $13.00 (59.6% higher than our fair-value estimate).
Our most-likely fair value is $8.14 a share — about 9.3% away from today's price of $7.45, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $8.5M. Interest coverage -10.0x.
Net debt
$8.48M
Interest coverage
-9.96x
Northern Technologies International Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
NTIC
BASELINE
Northern Technologies International Corporation
Total debt $15.75M Interest coverage -9.96x This is the baseline the peer rows are being compared against.
Total debt $19.25M Interest coverage 120.49x This peer still has a real interest-payment cushion, while NTIC does not.
Total debt $63.20M Interest coverage 6.96x This peer still has a real interest-payment cushion, while NTIC does not.
Total debt $771.33M Interest coverage 0.11x This peer still has a real interest-payment cushion, while NTIC does not.
Total debt $1.18B Interest coverage 3.40x This peer still has a real interest-payment cushion, while NTIC does not.
Total debt $17.41M Interest coverage -22.99x Neither company has much profit cushion over interest right now.
What you should know
The case for and against NTIC
3 Rewards
2 Risks
Rewards
-
Revenue grew 9.0% last year.
-
Free cash flow was positive in 7/10 years.
-
Dividend yield is 0.5% with 35-year payout history.
Risks
-
Net debt grew 427.6% over 3 years.
-
Return on equity was -0.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
24.83x
P/B
0.97x
P/S
0.77x
EV/EBITDA
1,173.91x
PEG ratio
0.80x
Profitability
How much profit each dollar creates
Gross margin
35.8%
Operating margin
-4.1%
Net margin
-1.3%
ROE
-0.1%
ROA
-1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
1.72x
Quick ratio
1.01x
Total debt
$15.75M
Total cash
$7.28M
Growth
How the business has been compounding
Revenue TTM
$91.84M
Revenue 5Y CAGR
10.5%
EPS TTM
-0.13
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-2.12M
Free CF TTM
$916.52K
FCF margin
1.0%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
71.0%
Last ex-div date
2026-01-28