Is NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC) Halal?

NASDAQ Basic Materials United States $78M
✓ HALAL
Confidence: 95/100
NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 16.1% against the AAOIFI threshold of 30%, NORTHERN TECHNOLOGIES INTERNATIONAL CORP comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Specialty Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from August 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 16.1%
/ 30%
8.9%
/ 30%
24.2%
/ 30%
0.37%
/ 5%
✓ HALAL
DJIM 16.1%
/ 33%
8.9%
/ 33%
24.2%
/ 33%
0.37%
/ 5%
✓ HALAL
MSCI 12.8%
/ 33%
7.1%
/ 33%
19.3%
/ 33%
0.37%
/ 5%
✓ HALAL
S&P 16.1%
/ 33%
8.9%
/ 33%
24.2%
/ 33%
0.37%
/ 5%
✓ HALAL
FTSE 12.8%
/ 33%
7.1%
/ 33%
19.3%
/ 50%
0.37%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.03
Dividend Yield
48.0%
Payout: 71.0%
P/B Ratio
1.1
EV/EBITDA
151.6
EV: $89M
Revenue
$84M
Growth: 9.2%
Beta
0.2
Low volatility
Current Ratio
1.8

Profitability

Gross Margin 37.0%
Operating Margin -1.2%
Net Margin -0.4%
Return on Equity (ROE) 0.9%
Return on Assets (ROA) -0.8%

Cash Flow & Balance Sheet

Operating Cash Flow$2M
Free Cash Flow-$2M
Total Debt$13M
Debt-to-Equity16.9
Current Ratio1.8
Total Assets$103M

Price & Trading

Last Close$8.40
50-Day MA$8.84
200-Day MA$8.04
Avg Volume12K
Beta0.2
52-Week Range
$6.75
$10.84

About NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC)

CEO
Mr. G. Patrick Lynch
Employees
269
Sector
Basic Materials
Industry
Specialty Chemicals
Country
United States
Exchange
NASDAQ
Market Cap
$78M
Currency
USD

Northern Technologies International Corporation, together with its subsidiaries, develops and markets rust and corrosion inhibiting products in China, Brazil, India, the United States, and internationally. It operates through ZERUST and Natur-Tec segments. The company offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. It also provides a portfolio of bio-based and certified compostable polymer resin compounds under the Natur-Tec brand; and finished products, such as trash bags, agricultural films, and single-use disposable products under the Natur-Bag brand. In addition, the company offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to the automotive, general industrial, mechanical, mining, agricultural, retail consumer, and oil and gas markets through direct sales force, network of independent distributors and agents, manufacturer's sales representatives, joint ventures, and strategic partners. Northern Technologies International Corporation was incorporated in 1970 and is headquartered in Circle Pines, Minnesota.

Purification Calculator

As a halal stock with 0.37% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NORTHERN TECHNOLOGIES INTERNATIONAL CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NORTHERN TECHNOLOGIES INTERNATIONAL CORP's debt ratio?

NORTHERN TECHNOLOGIES INTERNATIONAL CORP's debt ratio is 16.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 12.8%.

Does NORTHERN TECHNOLOGIES INTERNATIONAL CORP require dividend purification?

Yes, NORTHERN TECHNOLOGIES INTERNATIONAL CORP has an impermissible income ratio of 0.37%, which means 0.37% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are NORTHERN TECHNOLOGIES INTERNATIONAL CORP's key financial metrics?

NORTHERN TECHNOLOGIES INTERNATIONAL CORP has a market capitalization of $78M, and revenue of $84M. The company maintains a gross margin of 37.0% and a net margin of -0.4%. Return on equity stands at 0.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.