Northern Stock Story


USD 11.13  0.13  1.18%   

This article is aimed at all current Northern investors holding on to their positions. I will look into why, in spite of the cyclical Northern Technologies disturbance, the long term forward indicators of the company are still strong.
Published over a month ago
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Should we be taking in JP Morgan or Northern Technologies?

By analyzing existing forward indicators between Northern Technologies and JP Morgan, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in JP Morgan with a short position in Northern Technologies. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Northern Technologies has an asset utilization ratio of 128.98 percent. This suggests that the company is making $1.29 for each dollar of assets. An increasing asset utilization means that Northern Technologies Intl is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Northern Technologies's Liquidity

Northern Technologies financial leverage refers to using borrowed capital as a funding source to finance Northern Technologies Intl 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. Please check the breakdown between Northern Technologies's total debt and its cash.

How does Northern utilize its cash?

To perform a cash flow analysis of Northern Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Northern Technologies is receiving and how much cash it distributes out in a given period. The Northern Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Northern Technologies Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.6 Million

Exercise or conversion by Ramani Narayan of 8000 shares of Northern Technologies subject to Rule 16b-3

Legal trades by Northern Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Northern insider trading alert for exercise of stock option (right to buy) by Ramani Narayan, the corporate stakeholder, on 25th of April 2022. This event was filed by Northern Technologies Int with SEC on 2022-04-25. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Northern Technologies

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Northern Technologies revenue. Based on the latest financial disclosure, Northern Technologies Intl reported 65.87 M of revenue. This is 99.16% lower than that of the Basic Materials sector and 98.52% lower than that of the Specialty Chemicals industry. The revenue for all United States stocks is 99.3% higher than that of Northern Technologies. As for JP Morgan we see revenue of 123.73 B, which is much higher than that of the Specialty Chemicals

123.7 B
NTIC65.87 Million0.0514
Sector4.45 Billion3.47
JPM123.73 Billion96.48

Will Northern pull back in August 2022?

Northern Technologies total risk alpha is up to -0.01.
As of the 7th of July, Northern Technologies secures the mean deviation of 2.05, and Risk Adjusted Performance of (0.16). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Northern Technologies, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Northern Technologies, which can be compared to its peers in the industry. Please verify Northern Technologies information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Northern Technologies Intl is priced some-what accurately, providing market reflects its recent price of 9.45 per share. Given that Northern Technologies has jensen alpha of (0.27), we recommend you to check Northern Technologies's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas some companies in the specialty chemicals industry are either recovering or due for a correction, Northern Technologies may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Northern Technologies.

Editorial Staff

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 Ellen Johnson do not own shares of Northern Technologies Intl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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