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Nacco Industries, Inc. (NC)
:NC
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NACCO Industries
(NYSE:NC)
70Outperform
NACCO Industries (NC) vs. S&P 500 (SPY)
Market Cap
$250.69M
Dividend Yield2.67%
Average Volume (3M)10.52K
Price to Earnings (P/E)7.4
Beta (1Y)0.45
Revenue Growth10.67%
EPS GrowthN/A
CountryUS
Employees600
SectorEnergy
Sector Strength85
IndustryCoal
Share Statistics
EPS (TTM)4.57
Shares Outstanding5,866,937
10 Day Avg. Volume11,109
30 Day Avg. Volume10,515
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.07
Price to Cash Flow (P/CF)2.50
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
NACCO Industries Business Overview & Revenue Model
Company DescriptionNACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts for power generation companies and an activated carbon producer in North Dakota, Texas, Mississippi, and Louisiana in the United States, as well as Navajo Nation in New Mexico. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, lithium, and other minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, and Indiana. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. The company was founded in 1913 and is headquartered in Cleveland, Ohio.
How the Company Makes MoneyNACCO Industries generates revenue primarily through its coal mining operations, where it supplies coal to power generation companies under long-term contracts. This provides a stable and predictable revenue stream. Additionally, NACCO earns income from its minerals management services, which involve managing mineral and royalty interests. The company's revenue model benefits from its strategic focus on long-term contracts and its ability to provide specialized services to natural resources companies. Significant partnerships with power generation companies and strategic management of mineral assets are key factors contributing to its earnings.
NACCO Industries Financial Statement Overview
Summary
NACCO Industries has shown a recovery in profitability and revenue growth, supported by a strong balance sheet with low leverage. The cash flow improvements are moderate, indicating a need for enhanced cash management. The company is positioned well for future opportunities in the fossil fuels industry but needs to maintain consistent performance.Income Statement
The company has shown a positive revenue growth rate of 10.68% in the latest year, recovering from a decline in the previous period. The gross profit margin improved to 12.52% from 6.79%, indicating better cost management. The net profit margin turned positive to 14.2% from a negative position, reflecting strong profitability recovery. However, EBIT and EBITDA margins, although improved, highlight previous volatility in earnings.65
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.10, showing low leverage. Return on equity is solid at 8.33%, indicating efficient use of equity to generate profits. The equity ratio stands at 64.11%, reflecting a strong equity position relative to total assets, which provides financial stability.75
Positive
Cash Flow
Free cash flow turned positive, signaling improved cash generation, but growth is constrained with a minor increase of 0.34%. The operating cash flow to net income ratio is 0.66, indicating a decent conversion of income to cash. However, the free cash flow to net income ratio is 0.66, suggesting cash flow challenges in covering net income.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 237.71M | 214.79M | 241.72M | 191.85M | 128.43M | Gross Profit |
| 29.76M | 14.59M | 67.84M | 43.45M | 16.97M | EBIT |
| 35.70M | -70.14M | 69.99M | 55.41M | 22.48M | EBITDA |
| 63.86M | -32.31M | 25.85M | 5.96M | -20.72M | Net Income Common Stockholders |
| 33.74M | -39.59M | 74.16M | 48.13M | 14.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 72.83M | 85.11M | 110.75M | 86.00M | 88.45M | Total Assets |
| 631.69M | 539.71M | 568.07M | 507.22M | 476.18M | Total Debt |
| 38.56M | 46.22M | 27.20M | 30.44M | 57.66M | Net Debt |
| -34.28M | -38.89M | -83.55M | -55.56M | -30.79M | Total Liabilities |
| 226.74M | 157.37M | 141.11M | 155.10M | 175.56M | Stockholders Equity |
| 404.95M | 382.34M | 426.97M | 352.12M | 300.62M |
| Cash Flow | Free Cash Flow | |||
| 22.29M | -27.63M | 25.21M | 35.65M | -32.67M | Operating Cash Flow |
| 22.29M | 54.49M | 67.73M | 74.88M | -2.49M | Investing Cash Flow |
| -71.29M | -81.60M | -33.15M | -44.15M | -45.98M | Financing Cash Flow |
| 36.73M | 1.47M | -9.84M | -33.17M | 14.03M |
NACCO Industries Technical Analysis
Positive
33.73
Price Trends
32.43
Positive
31.45
Positive
29.64
Positive
Market Momentum
0.51
Positive
58.38
Neutral
53.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NC, the sentiment is Positive. The current price of 33.73 is above the 20-day moving average (MA) of 33.42, above the 50-day MA of 32.43, and above the 200-day MA of 29.64, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NC.
NACCO Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.37B | 9.16 | 32.48% | 2.89% | -16.56% | -24.95% | |
74 Outperform | $4.12B | 8.02 | 19.67% | 0.65% | -13.20% | -51.56% | |
72 Outperform | $1.65B | 5.02 | 10.41% | 2.21% | -14.50% | -46.36% | |
70 Outperform | $250.69M | 7.41 | 8.57% | 2.67% | 10.67% | ― | |
69 Neutral | $2.55B | 10.15 | 12.64% | 0.67% | -9.10% | -47.93% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% |
* Energy Sector Average
Performance Comparison
NC
NACCO Industries
34.09
5.77
20.37%
NRP
Natural Resource PRN
102.75
12.97
14.45%
HCC
Warrior Met Coal
48.06
-10.04
-17.28%
BTU
Peabody Energy Comm
13.53
-10.43
-43.53%
CNR
Core Natural Resources
77.92
-4.43
-5.38%
NACCO Industries Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 4.49% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
NACCO Industries demonstrated strong financial performance for 2024, with significant growth in adjusted EBITDA and positive contributions from various segments. However, challenges such as lower profitability in North American Mining due to hurricanes and inventory write-downs in the coal business balanced the positive outcomes. Overall, the sentiment leans towards optimism for future growth despite current challenges.Highlights
Strong Financial Performance in 2024
NACCO Industries reported a robust 2024 fourth quarter net income of $7.6 million and full year net income of $33.7 million. Fourth quarter adjusted EBITDA of $9 million increased almost 27% over fourth quarter 2023, and full year adjusted EBITDA of $59.4 million increased 116% year-over-year.
Coal Mining Segment Success
The Coal Mining segment's adjusted EBITDA more than quadrupled from 2023. Earnings at unconsolidated Coal Mining operations improved, with increased earnings at both Coteau and Falkirk.
North American Mining Growth
North American Mining delivered a 35% increase in segment-adjusted EBITDA. Full year operating profit of $5.8 million was up 72% compared with 2023.
Minerals Management Expansion
Minerals Management generated a 21% increase in segment-adjusted EBITDA, with a $4.5 million gain on the sale of assets. The segment also invested $15.7 million in oil and natural gas assets expected to be accretive to future earnings.
Mitigation Resources Contribution
Mitigation Resources of North America contributed positively to operating profit and EBITDA during the 2024 fourth quarter and is expected to achieve full-year operating profit in 2025.
Lowlights
Challenges in North American Mining
North American Mining experienced lower profitability in the second half of 2024 compared with the first half, partially due to an overall reduction in demand and the effects of three hurricanes in Florida.
Inventory Write-downs Impact
The coal business faced recurring inventory write-downs, which have not been added back to EBITDA due to their recurrence over the past year.
Temporary Price Concessions Impact
The Coal Mining segment's improvement was partially offset by reduced revenues at Mississippi Lignite Mining Company due to reduced customer demand and temporary price concessions at Falkirk.
Company Guidance
During NACCO Industries' 2024 Fourth Quarter and Full Year 2024 Earnings Conference Call, key financial metrics were highlighted. The company reported a fourth-quarter net income of $7.6 million, contributing to a full-year net income of $33.7 million. Fourth-quarter adjusted EBITDA rose by 27% to $9 million compared to 2023, while full-year adjusted EBITDA increased by 116% to $59.4 million. Significant contributions came from the Coal Mining segment, where segment-adjusted EBITDA more than quadrupled, and North American Mining, which saw a 35% increase in segment-adjusted EBITDA. Minerals Management also experienced a 21% increase in segment-adjusted EBITDA. Despite challenges in 2023, including a $65.9 million pre-tax asset impairment charge, NACCO Industries demonstrated resilience and growth in 2024, with the North American Mining segment reporting a full-year operating profit of $5.8 million, up 72% from 2023. Looking ahead to 2025, the company anticipates modest increases in consolidated operating profits, with continued progress in North American Mining and sustained performance in Minerals Management.NACCO Industries Corporate Events
Business Operations and Strategy
NACCO Industries Introduces New Retirement Plan for Employees
Neutral
Dec 17, 2024
NACCO Industries’ Compensation and Human Capital Committee has approved the adoption of the NACCO Natural Resources Corporation Excess Retirement Plan, effective January 1, 2025. This plan replaces the prior retirement plan and offers similar benefits to eligible employees, including excess 401(k), matching, and profit-sharing benefits. A notable change in the new plan is the inclusion of short-term incentive payments in the definition of compensation, potentially enhancing the retirement benefits for highly compensated employees.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.