Northern Technologies International Corporation Common Stock (NTIC)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, consistent earning power, and a margin of safety. Northern Technologies is a small specialty chemicals firm—269 employees—selling rust and corrosion inhibitors, mostly under ZERUST, plus Natur-Tec. The niche is understandable, but the numbers do not yet show a moat. In fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $24.2M but net income was -$263,291 and diluted EPS -$0.03. Fiscal Q2 2026 had revenue of $22.0M and a net loss of $35,323. Fiscal Q1 2026 did produce $237,819 of net income on $23.3M revenue, but the trend is fragile. For FY2025, revenue was $84.2M and net income only $17,619; FY2024 had $85.1M revenue and $5.4M net income. So sales are not collapsing—Q3 2026 revenue exceeded Q3 2025's $21.5M—but profits have collapsed. FairStock shows a negative P/E of -59.23 and P/B of 1.00 at the 2026-10-13 close of $7.70. The balance sheet is a relative bright spot with D/E of 0.20, but trailing free cash flow is -$3.9M, a -5.4% FCF yield, and ROE is -0.10%. The Piotroski F-Score of 3/9 and Altman Z-Score of 2.54 suggest financial quality is weak. EV/EBITDA of 17.96 is not a bargain for a cyclical specialty chemical company with erratic earnings. The Lynch category is CYCLICAL, and cyclicals can recover, but I see no margin of safety yet. I would want evidence of durable positive earnings and cash generation before calling this a sound value.

In plain English: Northern Technologies sells rust and corrosion prevention products, mainly under the ZERUST brand, and also has a Natur-Tec business. It is currently unprofitable, with a small loss in the latest reported quarter and very weak full-year profit, so the business looks weak. At $7.70, the price is close to its accounting value and below its 52-week high, but with no real earnings and negative cash flow it does not look clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer