NTIC's ROE % is ranked worse than 75.7% of 1580
companies
in the Chemicals industry
Industry Median: 5.195
vs NTIC: -1.08
Northern Technologies International (NAS:NTIC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Northern Technologies International ROE % Related Terms
Northern Technologies International ROE % 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.
For the Specialty Chemicals subindustry, Northern Technologies International's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Chemicals Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Northern Technologies International (NTIC) has a ROE % of -0.19% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northern Technologies International and its competitors. According to the industry distribution chart, Northern Technologies International ranks #1196 out of 1580 companies in the Chemicals industry, placing it in the top 75.7%.
Is Northern Technologies International's ROE % too high?
Northern Technologies International's current ROE % is -0.19%. Based on the distribution chart, Northern Technologies International ranks #1196 out of 1580 companies in the Chemicals industry, which is in the bottom quartile 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 ROE % compare to FSI and FEAM?
According to the Chemicals industry distribution chart, Northern Technologies International ranks #1196 out of 1580 companies for ROE %. This places Northern Technologies International in the lower half of its industry. The industry median ROE % is 5.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northern Technologies International and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Technologies International's current ROE % is -0.19%. 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 ROE % is -0.19%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Northern Technologies International (NTIC), the current ROE % is -0.19% 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:
ROE %: -0.19%
GF Value™: $13.76 vs. price of $8.63 (37.3% below fair value)
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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