NL Industries, Inc. operates in the component products industry in the United States and internationally. The companys Security Products business 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, vending and gaming machines, high security medical cabinetry, electronic circuit panels, storage compartments, and gas station security. The company was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. is a subsidiary of Valhi, Inc.
NL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Nl Industries Inc. To summarize, we found that Nl Industries Inc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Nl Industries Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.03% -- higher than merely 20.26% of stocks in our DCF forecasting set.
NL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 58.38% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Nl Industries Inc has a reliance on debt greater than only 2.26% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NL, try LAWS, NSSC, RBA, WTS, and CECE.
Dallas, Texas, Oct. 29, 2020 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE:NL) today announced that its Board of Directors voted to declare a quarterly dividend of four cents ($0.04) per share on its common stock payable on December 15, 2020 to shareholders of record at the close of business on December 1, 2020. NL Industries, Inc. is engaged in the component products (security products and recreational marine components) and titanium dioxide products businesses.* * * * * CONTACT: SOURCE: NL Industries, Inc. CONTACT: Janet G. Keckeisen, Vice President - Corporate Strategy and Investor Relations, 972.233.1700