NL Industries, Inc. (NL) | Investment Case

1. Company Snapshot

1.a. Company Description

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally.The company manufactures and sells mechanical and electronic cabinet locks, and other locking mechanisms, including disc tumbler locks, pin tumbler locking mechanisms, and CompX eLock and StealthLock electronic locks for use in various applications, such as ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, integrated inventory and access control secured narcotics boxes, vending and cash containment machines, medical cabinetry, electronic circuit panels, storage compartments, and gas station security.It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; grab handles, pin cleats, and other accessories; and dash panels, LED indicators, wire harnesses, and other accessories primarily for performance and ski/wakeboard boats.

In addition, the company offers insurance brokerage and risk management services.It sells its component products directly to original equipment manufacturers, as well as through distributors.NL Industries, Inc.

was founded in 1891 and is based in Dallas, Texas.NL Industries, Inc.is a subsidiary of Valhi, Inc.

Show Full description

1.b. Last Insights on NL

NL Industries' recent performance was negatively impacted by a significant 94% drop in Q2 EPS, primarily due to a substantial decline in net income attributable to NL stockholders. The company's Q2 2025 results included an unrealized loss related to marketable equity securities, contrasting with an unrealized gain in the same period last year. Despite this, NL Industries maintains a compelling income opportunity, offering a 5.56% forward dividend yield. However, the payout ratio remains a concern. The upcoming Q3 2025 earnings release is expected on November 6, 2025.

1.c. Company Highlights

Last Price	5.44
Change Percentage	-3.03%
Open	5.61
Previous Close	5.61
Market Cap ( Millions)	266
Volume	12548
Year High	9.42
Year Low	5.04
M A 50	5.79
M A 200	6.72

FCF Yield	-10.03%
Dividend Yield	10.48%
ROE	2.47%
Debt / Equity	0.00%
Net Debt / EBIDTA	0.00%
Price To Book	0.71
Price Earnings Ratio	27.42
Price To FCF	-9.97
Price To sales	1.67
EV / EBITDA	9.46

2. Transcript Summary

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3. NewsRoom

NL Industries: Majority-Owned CompX Offsetting Kronos Concerns

Nov -20

Source: seekingalpha.com

NL Industries (NYSE:NL) versus Elementis (OTCMKTS:ELMTY) Head-To-Head Contrast

Nov -17

Source: defenseworld.net

NL REPORTS THIRD QUARTER 2025 RESULTS

Nov -06

Source: globenewswire.com

NL INDUSTRIES ANNOUNCES QUARTERLY DIVIDEND FOR THE FOURTH QUARTER OF 2025 AT $.09 PER SHARE

Oct -30

Source: globenewswire.com

NL INDUSTRIES ANNOUNCES EXPECTED THIRD QUARTER 2025 EARNINGS RELEASE DATE

Oct -14

Source: globenewswire.com

NL Industries (NL) Q2 EPS Drops 94%

Aug -07

Source: fool.com

NL INDUSTRIES ANNOUNCES A SPECIAL DIVIDEND OF 21 CENTS PER SHARE PAYABLE IN AUGUST 2025, AND A QUARTERLY DIVIDEND FOR THE THIRD QUARTER OF 2025 AT 9 CENTS PER SHARE

Aug -06

Source: globenewswire.com

NL REPORTS SECOND QUARTER 2025 RESULTS

Aug -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.33%)

6. Segments

Security Products

Expected Growth: 4.5%

NL Industries' Security Products segment growth of 4.5% is driven by increasing demand for ammunition and reloading components, fueled by rising participation in outdoor activities and recreational shooting. Additionally, growing concerns about personal safety and national security are boosting demand for security-related products, contributing to the segment's growth.

Marine Components

Expected Growth: 3.8%

NL Industries' Marine Components segment growth of 3.8% is driven by increasing demand for recreational boats and vessels, driven by rising disposable incomes and growing consumer spending on leisure activities. Additionally, the company's focus on innovative products and cost-effective manufacturing processes has enabled it to gain market share and expand its customer base.

7. Detailed Products

Titanium Dioxide Pigments

NL Industries, Inc. produces high-quality titanium dioxide pigments used in coatings, plastics, and paper products.

Chrome Oxide Pigments

The company manufactures chrome oxide pigments for use in coatings, plastics, and colorants.

Iron Oxide Pigments

NL Industries, Inc. produces iron oxide pigments for use in coatings, construction materials, and colorants.

Chrome Chemicals

The company manufactures chrome chemicals used in leather tanning, metal finishing, and wood treatment.

Titanium Metals

NL Industries, Inc. produces titanium metals used in aerospace, industrial, and consumer applications.

8. NL Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NL Industries, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

NL Industries, Inc. has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

NL Industries, Inc. relies on a few key suppliers, giving them some bargaining power, but the company's size and diversification mitigate this risk.

Threat Of New Entrants

NL Industries, Inc. operates in a capital-intensive industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

NL Industries, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.14%
Debt Cost	3.95%
Equity Weight	99.86%
Equity Cost	7.29%
WACC	7.29%
Leverage	0.14%

11. Quality Control: NL Industries, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

NL Industries

A-Score: 6.1/10

Value: 8.3

Growth: 4.8

Quality: 8.4

Yield: 10.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Napco Security Technologies

A-Score: 5.0/10

Value: 1.2

Growth: 8.8

Quality: 8.6

Yield: 1.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

Arlo Technologies

A-Score: 4.3/10

Value: 4.9

Growth: 5.7

Quality: 3.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

Mistras

A-Score: 4.2/10

Value: 6.8

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

GEO Group

A-Score: 4.2/10

Value: 5.1

Growth: 2.3

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

VerifyMe

A-Score: 2.9/10

Value: 7.4

Growth: 6.4

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

54.02%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.29%

NL Industries, Inc. - US6291564077

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NL

1.c. Company Highlights

Higher Yield

Stable Momentum

Average Quality

Earnings Beats

Medium Volatility

Better Quality

Strong Momentum

Weak Momentum

Earnings Miss

Fairly Valued

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.33%)

6. Segments

Security Products

Expected Growth: 4.5%

Marine Components

Expected Growth: 3.8%

7. Detailed Products

Titanium Dioxide Pigments

Chrome Oxide Pigments

Iron Oxide Pigments

Chrome Chemicals

Titanium Metals

8. NL Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: NL Industries, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.44$

Current Price

5.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA