NLNLI Holdings, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (0.9×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NL?
NLI Holdings, Inc. earns 4.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.4 points below what the capital costs: growth destroys value
- Operating margin
- 9.3%
Operating margin · Security & Protection Services median 13% · 12 months to Q2 2026
- Cash conversion
- 0.95×
Cash conversion · −1.07× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 32%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 2.1% |
| FY2021 | 7.4% |
| FY2022 | 8.2% |
| FY2023 | 8.8% |
| FY2024 | 26% |
| FY2025 | 6.7% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 9.3%
- Net margin12 months to Q2 2026
- −16%
- Free cash flow margin
- 5.0%
- Revenue, trailing twelve months
- $162M
- Free cash flow, trailing twelve months
- $8.1M
- Net income, trailing twelve months
- −$26M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Security & Protection Services
Ranks #8 of 10 by RyuScore