Orin
NPKINYSE·Construction Materials

NPK International Inc. NPKI

Market cap $995.1MP/E 25.6× trailingGross margin 35.3%Reports Thu 29 Oct, after the close
$11.71
−0.03 (−0.26%)Wed close 16:00 ET
52-wk $10.73 – $16.50
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Orin's take
0.62conviction · moderate
Refreshed 3 Sep · take v5. A new filing or a print queues the next refresh.

NPK International's fundamental recovery is genuine—FY2025 revenue of $277M grew 27.4% YoY with operating margin expanding to 16.9%, Q2 2026 revenue of $81.6M rose 19.6% YoY at a 19.7% operating margin, and the company has beaten EPS estimates in four consecutive quarters including a 15.4% surprise in the latest quarter. However, the stock has slipped below both its 50-day MA ($14.02) and 200-day MA ($13.98) to $13.24 with a bearish MACD histogram (-0.029) and RSI at 43.1, while insiders have net sold $10.5M over 24 months including the CEO's $2.4M sale in June 2026.

With a trailing P/E of approximately 29x and no available peer benchmark, the improving fundamentals are not yet reflected in price action, warranting patience until technicals stabilize.

What could go wrong

  • Insider selling acceleration. Insiders net sold 862,532 shares worth $10.5M over 24 months with 70 dispositions versus 46 acquisitions; the CEO alone sold 167,375 shares for $2.4M in June 2026, and additional sales continued through August 2026.
  • Technical breakdown. Stock at $13.24 trades below both the 50-day MA ($14.02) and 200-day MA ($13.98) with a negative MACD histogram (-0.029) and RSI of 43.1, suggesting weakening momentum despite improving fundamentals.
  • Valuation with no peer context. Trailing P/E of 28.97 and P/S of 3.74 are rich for a construction materials supplier serving oil & gas E&P, and no peer median benchmarks are available to assess relative value.
  • Cyclicality of E&P exposure. FY2022 revenue collapsed 68.6% YoY to $193M from FY2021's $615M with a $20.8M net loss, demonstrating the company's vulnerability to oil & gas spending cycles.

What would change my mind

Stock reclaims 50-day MA on volume. NPKI closes above $14.02 (50-day MA) on above-average daily volume, confirming the fundamental recovery is being recognized by the marketbullish
Insider buying emerges. One or more insiders execute open-market purchases (not option exercises) totaling at least 25,000 shares within a 30-day windowbullish
Revenue growth decelerates below 10%. Any upcoming quarterly report shows YoY revenue growth below 10%, breaking the current trajectory of 15-20%+ quarterly growthbearish
Stock breaks below $12. NPKI closes below $12 on heavy volume, confirming a technical breakdown that could signal deteriorating fundamentals ahead of public reportingbearish

Where this comes from: FMP annual fundamentals FY2025 + derived_metrics · quarterly_results Q2 2026 + Business Wire press release 2026-07-29 · earnings_surprises (periods ending 2026-07-29 through 2025-08-05) · technicals as of 2026-09-01. Orin's read on NPKI; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Ameriprise Financial$71.4M0.0% of fund
Vanguard Capital Management$57.4M0.0% of fund
Geode Capital Management$37.7M0.0% of fund
State Street$32.1M0.0% of fund
Massachusetts Financial Services /Ma/$23.1M0.0% of fund
Morgan Stanley$20.0M0.0% of fund

56 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 117 Form 4 filings, net −$10.5M. Of the 50 on hand, 0 were open-market purchases and 13 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Industrials
MetricNowOwn medianSector
P/E25.6×44.5×
EV/EBITDA12.2×
P/S3.31×
P/B2.7×
What the price assumes

16.4%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What it has traded at

P/E by fiscal year
FY14 6.6×FY25 28.4×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.7×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $11.71
52-week range$11 – $17
At sector P/E (45×)$20

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.