3 Stocks Pushing The Chemicals Industry Lower

The Chemicals industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Chemicals industry included Northern Technologies International ( NTIC), down 1.8%, NL Industries ( NL), down 3.6%, Flexible Solutions International ( FSI), down 1.9%, China Green Agriculture ( CGA), down 7.0% and Marrone Bio Innovations ( MBII), down 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Flexible Solutions International ( FSI) is one of the companies that pushed the Chemicals industry lower today. Flexible Solutions International was down $0.02 (1.9%) to $1.05 on light volume. Throughout the day, 18,040 shares of Flexible Solutions International exchanged hands as compared to its average daily volume of 181,900 shares. The stock ranged in price between $1.01-$1.09 after having opened the day at $1.09 as compared to the previous trading day's close of $1.07.

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water. Flexible Solutions International has a market cap of $13.7 million and is part of the basic materials sector. Shares are down 5.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Flexible Solutions International a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates Flexible Solutions International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on FSI go as follows:

  • The revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 30.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FSI's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FSI has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • FLEXIBLE SOLUTIONS INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FLEXIBLE SOLUTIONS INTL INC reported lower earnings of $0.03 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($0.10 versus $0.03).
  • FSI has underperformed the S&P 500 Index, declining 15.58% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Chemicals industry and the overall market, FLEXIBLE SOLUTIONS INTL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Flexible Solutions International Ratings Report

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At the close, NL Industries ( NL) was down $0.17 (3.6%) to $4.54 on light volume. Throughout the day, 13,478 shares of NL Industries exchanged hands as compared to its average daily volume of 26,500 shares. The stock ranged in price between $4.53-$4.70 after having opened the day at $4.61 as compared to the previous trading day's close of $4.71.

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. NL Industries has a market cap of $232.3 million and is part of the basic materials sector. Shares are down 45.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate NL Industries a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates NL Industries as a hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.

Highlights from TheStreet Ratings analysis on NL go as follows:

  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NL INDUSTRIES has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NL INDUSTRIES turned its bottom line around by earning $0.59 versus -$1.13 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.59).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 633.6% when compared to the same quarter one year ago, falling from $5.47 million to -$29.20 million.
  • The gross profit margin for NL INDUSTRIES is currently lower than what is desirable, coming in at 31.49%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -101.03% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.42%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 645.45% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

You can view the full analysis from the report here: NL Industries Ratings Report

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Northern Technologies International ( NTIC) was another company that pushed the Chemicals industry lower today. Northern Technologies International was down $0.28 (1.8%) to $15.50 on light volume. Throughout the day, 730 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 6,700 shares. The stock ranged in price between $15.14-$15.50 after having opened the day at $15.23 as compared to the previous trading day's close of $15.78.

Northern Technologies International Corporation develops, markets, and sells rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. Northern Technologies International has a market cap of $70.8 million and is part of the basic materials sector. Shares are down 26.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Northern Technologies International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

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Highlights from TheStreet Ratings analysis on NTIC go as follows:

  • The revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 19.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NTIC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.62, which clearly demonstrates the ability to cover short-term cash needs.
  • NORTHERN TECH INTL' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, NORTHERN TECH INTL increased its bottom line by earning $0.89 versus $0.76 in the prior year.
  • The gross profit margin for NORTHERN TECH INTL is currently lower than what is desirable, coming in at 34.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 10.93% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.36 million or 112.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Northern Technologies International Ratings Report

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