Northern Technologies (NTIC) is currently under scrutiny as analysts have not recommended any buys for the stock. Despite reporting a net income of $7.2M and a revenue of $77.4M, the company's real value is estimated at $13.12, suggesting a potential overvaluation. Furthermore, the forward dividend rate stands at 0.28, which might not be attractive for income-focused investors. The market risk adjusted performance of 3.24, coupled with a high kurtosis of 3.08, indicates a potential for extreme outcomes. While the quarterly revenue growth is at 0.091, indicating some positive momentum, the possible downside price is at $9.79, suggesting potential risk. Given these factors, it may be time to consider shorting Northern Technologies. Northern Technologies is set to release its earnings report today, with the forthcoming quarterly report anticipated on July 6, 2023. Despite the apparent indifference of many baby boomers towards the chemical sector, it is prudent to consider Northern Technologies as a potential investment. We will assess why we maintain our optimism, in anticipation of a market recovery.
Investing in Northern Technologies (USA Stocks: NTIC) may not be the best move at this time. The company's stock is currently trading at $10.72, which is significantly lower than its 52-week high of $14.745. This drop in price may be indicative of potential challenges facing the company. Moreover, the mean deviation of 0.7235 suggests that the stock's returns have been volatile, which could be a red flag for risk-averse investors. The market risk adjusted performance of 3.24 also indicates that the company's returns may not adequately compensate for
the level of risk taken. Additionally, the skewness of 0.68 implies that the returns are not normally distributed and are skewed to the right, indicating a higher probability of large losses. Lastly, the fact that there were 2.3K shares shorted in the prior month suggests that some investors are betting against the company. Therefore, it might be wise to consider other investment options at this time.
Detailed examination of Northern Stock
The average rating for Northern Technologies is 'Strong Buy', as provided by one analyst. Our investment recommendation tool can cross-verify the current
analyst consensus on Northern Technologies and assess the company's potential for growth in the current economic cycle.
Northern Technologies
financial leverage refers to using borrowed capital as a funding source to finance Northern Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Northern Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Northern Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Northern Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Northern Technologies's total debt and its cash.
Northern Technologies (NTIC) is a company with a strong financial position, boasting an EBITDA of $5.2 million and cash and equivalents of $6.13 million. With a potential upside of 1.28, it appears to be a solid investment. However, investors should not overlook the high coefficient of variation of -779.62, which suggests significant volatility and risk. This is further underscored by the negative information ratio of -0.21 and a value at risk of -1.57. Despite these risks, the company has a strong ownership structure, with 18.20% of shares owned by insiders and 37.24% by institutions. This indicates a high level of confidence in the company's management and
future prospects. Furthermore, with 201 employees, Northern Technologies has a substantial workforce to drive its operations and growth. The company also pays a dividend, with the last dividend paid being $0.28, which may appeal to income-focused investors. However, given the high level of risk indicated by the coefficient of variation and information ratio, caution is advised. Therefore, it might not be the right time to bet against Northern Technologies, but investors should carefully consider the associated risks.
Momentum Analysis of Northern Technologies suggests possible reversal in August
Northern Technologies' stock has recently exhibited a significant decrease in variance, dropping to 0.97. This reduction suggests a potential decrease in volatility, which may signal a shift in the stock's momentum. Historically, such shifts often precede substantial trend reversals. Therefore, investors should closely observe Northern Technologies in August, as the current momentum analysis indicates a potential reversal in the stock's trajectory. As of July 5th, Northern Technologies reported a Standard Deviation of 0.9854, a risk-adjusted performance of -0.09, and a Mean Deviation of 0.7235. In relation to fundamental indicators, the
technical analysis model allows for the examination of existing technical drivers of Northern Technologies, as well as their interrelationships. In essence, this information can be used to determine if the company will indeed reflect its model of past prices, or if the prices will eventually revert. We have managed to collect and analyze data for thirteen technical drivers for Northern Technologies, which can be compared to its industry peers. Please verify Northern Technologies' standard deviation, as well as the relationship between the maximum drawdown and kurtosis to decide if Northern Technologies is somewhat accurately priced, given the market reflects its recent price of $10.72 per share. Considering that Northern Technologies has an information ratio of -0.21, we recommend you to check Northern Technologies' recent market performance to ensure the company can sustain itself in the future. In conclusion, Northern Technologies, despite the recent price dip, remains a steady investment choice within the specialty chemicals industry. The firm presents an undervalued opportunity, with a market value of $10.72, significantly lower than the highest estimated target price of $20.00 set by analysts. Despite no current buy or hold recommendations from analysts, the potential upside price of $11.64 suggests that there is room for growth. Furthermore, the absence of lowered estimates by analysts indicates a stable outlook for the company. Therefore, our recommendation for Northern Technologies over the next 90 days is a strong hold, as we foresee very minimal chances of distress within the next two years.
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Northern Technologies. Please refer to our
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