Northern Technologies International (NAS:NTIC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Northern Technologies International had a gross margin of 35.72% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Northern Technologies International Gross Margin % Related Terms
Northern Technologies International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northern Technologies International Gross Margin % Chart
NTIC vs FSI, FEAM, KBLB: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Northern Technologies International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Technologies International Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Northern Technologies International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Northern Technologies International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Northern Technologies International (NTIC) has a Gross Margin % of 35.72% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Northern Technologies International and its competitors. This is near median its historical median of 33.61. Over the past decade, Northern Technologies International's Gross Margin % has ranged from 31.11 to 39.72. According to the industry distribution chart, Northern Technologies International ranks #334 out of 1555 companies in the Chemicals industry, placing it in the top 21.5%.
Is Northern Technologies International's Gross Margin % too high?
Northern Technologies International's current Gross Margin % of 35.72% is near median its 10-year median of 33.61. Over the past 10 years, this metric has ranged from a low of 31.11 to a high of 39.72. The Chemicals industry median Gross Margin % is 23.44. Northern Technologies International's value of 35.72% is 52.4% above this industry median. Based on the distribution chart, Northern Technologies International ranks #334 out of 1555 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Northern Technologies International has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Northern Technologies International's Gross Margin % compare to FSI and FEAM?
According to the Chemicals industry distribution chart, Northern Technologies International ranks #334 out of 1555 companies for Gross Margin %. This places Northern Technologies International in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.44. Northern Technologies International's value of 35.72% is 52.4% above this benchmark. Historically, Northern Technologies International's own Gross Margin % has ranged from 31.11 to 39.72 over the past decade. While the company's 10-year median is 33.61 vs. the industry median of 23.44, Northern Technologies International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.44, based on 1,555 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northern Technologies International's current Gross Margin % of 35.72% is 52.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Northern Technologies International and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Technologies International's current Gross Margin % is 35.72%, which is near median its own 10-year median of 33.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Technologies International stock overvalued right now?
Based on GuruFocus' analysis, Northern Technologies International (NTIC) is currently considered Possible Value Trap. The stock's GF Value™ is $13.76, compared to a current price of $8.63 — trading 37.3% below its estimated fair value. The current Gross Margin % is 35.72%, which is near median its 10-year median of 33.61 and 52.4% above the Chemicals industry median of 23.44. Northern Technologies International's overall GF Score™ is 56/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Northern Technologies International (NTIC), the current Gross Margin % is 35.72% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northern Technologies International (NTIC) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Technologies International stock appears to be undervalued.
The current stock price of $8.63 is trading 37.3% below its estimated GF Value™ of $13.76.
GuruFocus considers Northern Technologies International to be Possible Value Trap.
Key valuation signals for NTIC:
Gross Margin %: 35.72% (near median its 10-year median of 33.61)
GF Value™: $13.76 vs. price of $8.63 (37.3% below fair value)
Industry Position: 52.4% above the Chemicals median (#334 of 1555)
No single metric tells the full story. See the NTIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Technologies International Business Description
Northern Technologies International Corp is a United States-based firm that develops and markets proprietary, environmentally beneficial products and services world wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments, which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company. The company generates the majority of its revenue in the United States.
56GF Score
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