Manufactures and sells mechanical and electronic cabinet locks. Produces disc tumbler locks and pin tumbler locking mechanisms. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company is still in the product-building phase: its spending runs above its sales. That only changes once the product starts selling at scale.
At this burn rate the cash pile isn’t the pressing question — for now, time is on the company’s side.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Debt is low and cash is strong; the finances stand solid.
Clearly below the class average.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
Business Quality: Profit power and business quality trail similar companies in the sector.
The stock trades 33% below its peak. The market has trimmed its expectations for the company.
Sales run at $158.3M a year. A small number, but proof the product has real buyers.
There is $113.7M in the vault; even if every debt were paid off, $113.2M would remain.
Over the last 12 months, company executives reported 43 buys and 0 sells. Management buying with its own money is usually read as a good sign.
A loss of $37.8M against $158.3M in annual sales.
The stock trades 14% above the average analyst price target.
On our five-subject report card, NL sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: NL is a high-risk stock — not yet profitable, and its future rides on its product catching on.