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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2032
Positioning
Market Dominance
Manufacturing
Chemicals
$301M
Courtney J. Riley
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. It also offers original equipment and aftermarket exhaust headers, exhaust pipes, mufflers, and exhaust components.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = NL ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NL NL INDUSTRIES INC | 50 | 45 | 47 | 41 | 9.7x | 31.1x | 8.0% | 6.3% | 29.5% | 6.4% | 23.9% | 11.3% | 9.1% | 27.0x | $301M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
NL INDUSTRIES INC (NL) receives a "Reduce" rating with a composite score of 49.8/100. It ranks #2032 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for NL.
View All RatingsROE proxy 8.0% (sector -1.9%)
GM 29% vs sector 44%, OM 6% vs sector 3%
Capital turnover N/A
Rev growth 11%, 10yr history
Interest coverage 20.6x, Net debt/EBITDA -54.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate NL INDUSTRIES INC (NL) as a Reduce with a composite score of 49.8/100 at a current price of $6.22. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
NL INDUSTRIES INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.8/100 places it at rank #2032 in our full universe.
Narrow
Low
Standard
Fair Value
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
NL INDUSTRIES INC represents a reduce based on multi-factor quantitative performance.
NL INDUSTRIES INC receives a Reduce rating from our analysis, with a composite score of 49.8/100 and 2 out of 5 stars, ranking #2032 out of 7,333 stocks. NL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 45/100, NL shows adequate but unremarkable business quality. The company reports a return on equity of 8.0% (sector avg: -1.9%), gross margins of 29.5% (sector avg: 44.1%), net margins of 23.9% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 47/100, NL appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 9.73x, an EV/EBITDA of 31.05x, a P/B ratio of 0.78x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
NL INDUSTRIES INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 11.3% vs. a sector average of 6.7% and a return on assets of 6.3% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
NL is currently showing below-average momentum at 41/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 11.3% year-over-year, while a beta of 0.84 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
NL shows good financial stability with a score of 69/100. Key stability metrics include a beta of 0.84 and a debt-to-equity ratio of 27.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
NL's short interest factor score of 84/100 indicates very low short selling activity relative to peers — a positive signal suggesting institutional investors see limited near-term downside. Specific risk factors include elevated leverage (D/E: 27.00x), small-cap liquidity risk. As a small-cap company with a market capitalization of $301M, NL INDUSTRIES INC benefits from the generally lower volatility and deeper liquidity associated with its size class.
NL INDUSTRIES INC offers an attractive dividend yield of 9.1%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
NL INDUSTRIES INC is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2032 of 7,333 overall (72nd percentile). Key comparisons include ROE of 8.0% exceeding the -1.9% sector median and operating margins of 6.4% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While NL currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Investment (26) would have the largest impact on the composite score.
EV/EBITDA 171% ABOVE SECTOR MEDIAN
ROE 520% BELOW SECTOR MEDIAN
Gross Margin 33% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
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NL Industries declared a quarterly dividend of $0.09 per share, payable on December 16, 2025, to shareholders of record as of November 21, 2025.