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what it is
NL sells locks and marine parts that people replace when failure is more expensive than the part.
how it gets paid
Last year Nl Inds made $158M in revenue. mechanical cabinet locks was the main engine at $52M, or 33% of sales.
why it's growing
Revenue grew 8.5% last year. Gross margin was 29.9%. Gross margin → sales left after product costs → so what: NL still has pricing and manufacturing discipline even when EPS.
what just happened
Revenue jumped to $121M, but NL still posted a loss.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
28.4x trailing p/e — priced about right
6.7% dividend yield — cash in your pocket every quarter
16.9% return on capital — nothing to write home about
xvary composite: 49/100 — below average
What they do
NL sells locks and marine parts that people replace when failure is more expensive than the part.
NL wins by selling boring parts that still have to work. Latest gross margin was 29.9%, and 2024 operating margin was 14.2%, which is solid on $158 million of annual revenue. If your cabinet lock jams or your boat exhaust fails, you do not want a science project. You reorder the part that fits.
How they make money
$158M
annual revenue · their business grew +8.5% last year
mechanical cabinet locks
$52M
+6.0%
electrical and electronic locks
$31M
+8.5%
other locking mechanisms
$17M
+6.0%
marine exhaust systems
$38M
+8.5%
marine accessories and controls
$20M
+6.0%
The products that matter
manufactures locks and marine components
CompX International
$138M revenue · 87% of the business
it's the core operating asset. CompX generated $138M in revenue and posted a 30.4% gross margin, which is the healthiest number anywhere in this snapshot.
30.4% gross margin
minority stake in pigment producer
Kronos Worldwide
31% owned · $20M shown here
this is the swing factor. NL owns 31% of Kronos, and that exposure was a big enough drag to help produce the $37.8M full-year net loss.
cyclical exposure
Key numbers
6.7%
dividend yield
You are being paid to wait, and that matters more when earnings are uneven.
$0M
long-term debt
Long-term debt → money owed for years → so what: NL does not have lenders leaning on it during a bad quarter.
14.2%
operating margin
Operating margin → profit after running the business → so what: the core operation is still profitable before balance sheet noise.
28.4x
trailing p/e
P/E → price compared with last year's profit → so what: you are paying up for a company with unstable earnings.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $0M (0% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for NL right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue jumped to $121M, but NL still posted a loss.
Sales rose 202% vs. prior year in the latest quarter, yet EPS was -$0.14. That is the quiet part out loud. Bigger sales did not turn into bottom-line stability.
$121M
revenue
-$0.14
eps
29.9%
gross margin
the number that mattered
Gross margin was 29.9%. Gross margin → sales left after product costs → so what: NL still has pricing and manufacturing discipline even when EPS swings around.
source: company earnings report, 2026
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What could go wrong
the top risk is Kronos Worldwide's titanium dioxide cycle.
high
Kronos exposure
NL's 31% stake in Kronos ties part of your outcome to titanium dioxide pricing, raw material costs, and a cyclical end market you do not control.
this exposure was a major reason the company reported a $37.8M full-year net loss.
high
dividend strain
a 6.7% yield looks great until earnings disappear. If operating cash from CompX and asset-level distributions do not cover the payout, the dividend becomes part of the problem.
the mismatch is already visible: $37.8M annual loss alongside a high cash payout.
med
holding-company drag
you are not buying CompX alone. You are buying CompX, a minority commodity stake, and corporate overhead in one wrapper.
CompX generated $138M in revenue and 30.4% gross margin, but shareholders still got a loss year at the parent level.
med
legal overhang
ongoing litigation cited in filings adds another layer of uncertainty to an already complicated story.
hard to model, but easy for the market to discount.
four core risks. the biggest one sits outside the main operating business, which is exactly why this stock is hard to value cleanly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether CompX can keep carrying the story
CompX produced $138M in revenue and a 30.4% gross margin. If that business softens too, the rest of the structure has nowhere to hide.
risk
Kronos and the titanium dioxide cycle
the 31% Kronos stake is the biggest swing factor. Improvement there changes the earnings picture fast. Another weak patch keeps the holdco discount alive.
calendar
may 14, 2026 annual meeting
shareholders are set to vote on moving the corporate domicile from New Jersey to Delaware. It is not the core thesis, but it is the next formal company milestone on the calendar.
trend
dividend versus earnings reality
a 6.7% yield can support the stock for a while. Over time, the market will want evidence that the payout is backed by healthier earnings, not just patience.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not view this as a steady earner. You should expect uneven quarters and a thesis that can change quickly.
risk rank
3
that sits around the middle. Not a collapse candidate, not a sleep-well-at-night stock either.
source: institutional data
Institutional activity
institutional ownership data for NL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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