Luis Alvarez/DigitalVision via Getty Images NL Industries ( NL ) is a small-cap holding company with a complex structure of ownership and assets, as well as direct financial exposure to its parent company’s performance. The investment case is made more difficult by ongoing litigation risks and macroeconomic exposure. Yet despite the complexities, the firm trades at a material discount to book valu...
Luis Alvarez/DigitalVision via Getty Images NL Industries ( NL ) is a small-cap holding company with a complex structure of ownership and assets, as well as direct financial exposure to its parent company’s performance. The investment case is made more difficult by ongoing litigation risks and macroeconomic exposure. Yet despite the complexities, the firm trades at a material discount to book value and carries almost no debts on the balance sheet, sitting in a cash-rich position and with two operating entities that are quietly performing well. This piece attempts to describe the value underlying NL and help investors better understand some of the key performance drivers that might deserve attention. Thesis: A Strong Entrant for Investor Watchlists The firm has two main segments: CompX International Inc. ( CIX ), a majority ownership of the security products and marine components business Kronos Advanced Technologies Inc. ( KNOS ), a 30% non-controlling stake in the large titanium dioxide producer Further, the financial performance of the firm is closely tied to the performance of Valhi, Inc. ( VHI ), the parent-company of NL, of which NL owns 1.2m non-voting shares in (worth approximately $17,556,000, making up a sizable portion of NL’s total equity). The firm has seen its share of legal and environmental remediation issues; however, it is settling or closing a number of cases, and the firm looks to be finalizing these cases shortly. These issues have not, however, impacted the operations of the firm, with revenues and gross profits steady. Operating performance has been unaffected by the legal woes, and with the closure of each litigation comes a more positive, forward-looking picture. Our thesis contests that a future buy argument exists for investors who can understand the complexity of the organization and believe current and future legal cases will not significantly trouble the firm. The financial normalization of the organization would allow investors to take ...
Axon Enterprise shares surged 18% after Q4 earnings crushed estimates with 39% revenue growth. Down 50% from highs, analysts still see roughly 25% upside ahead.
Axon Enterprise shares surged 18% after Q4 earnings crushed estimates with 39% revenue growth. Down 50% from highs, analysts still see roughly 25% upside ahead.
First Advantage press release ( FA ): Q4 Non-GAAP EPS of $0.30. Revenue of $420M. More on First Advantage Seeking Alpha’s Quant Rating on First Advantage Historical earnings data for First Advantage Financial information for First Advantage
First Advantage press release ( FA ): Q4 Non-GAAP EPS of $0.30. Revenue of $420M. More on First Advantage Seeking Alpha’s Quant Rating on First Advantage Historical earnings data for First Advantage Financial information for First Advantage