NACCO Industries (NC) AI Stock Analysis

• Market Cap: $276.19M
• Dividend Yield: 2.52%
• Average Volume (3M): 8.56K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.59
• Revenue Growth: 14.70%
• EPS Growth: N/A
• Country: US
• Employees: 600
• Sector: Energy
• Sector Strength: 43
• Industry: Coal
• EPS (TTM): 0.66
• Shares Outstanding: 5,877,177
• 10 Day Avg. Volume: 6,981
• 30 Day Avg. Volume: 8,563
• PEG Ratio: 5.53
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $38.00 ▲(4.45%Upside)

NACCO Industries is positioned well with strong financials and a low P/E ratio, suggesting potential undervaluation. The recent dividend increase and positive earnings call highlights, particularly in coal mining, bolster the outlook. However, challenges in cash flow conversion and certain operational segments temper the score.

NACCO Industries Business Overview & Revenue Model

Company Description

NACCO 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 Money

NACCO 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 demonstrates a stable financial position with a strong equity base and improving revenue. However, there are concerns regarding profitability margins and cash flow generation. The company's low leverage is a positive aspect, providing flexibility, but cash conversion remains an area for improvement.

Income Statement

The company shows a mixed performance with improving revenue and profitability. The gross profit margin for TTM (Trailing-Twelve-Months) is 12.91%, and the net profit margin is 13.63%. Revenue growth from 2024 to TTM is 5.15%, indicating a positive trend. However, EBIT and EBITDA margins have weakened compared to previous years, with TTM EBIT margin at 6.36% and EBITDA margin at 14.79%.

Balance Sheet

The company's balance sheet is stable with a strong equity base. The debt-to-equity ratio is 0.26, indicating low leverage, and the equity ratio is 64.50%, suggesting high asset financing through equity. However, the return on equity (ROE) is modest at 8.33% for TTM, reflecting moderate profitability.

Cash Flow

Cash flow metrics present both challenges and opportunities. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is -0.46 for TTM, indicating issues with converting profits into cash. Free cash flow growth is negative, highlighting challenges in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
249.99M	237.71M	214.79M	241.72M	191.85M	128.43M
	Gross Profit
32.28M	29.76M	14.59M	67.84M	43.45M	16.97M
	EBIT
15.90M	35.70M	-70.14M	69.99M	55.41M	22.48M
	EBITDA
36.98M	63.86M	-32.31M	25.85M	5.96M	-20.72M
	Net Income Common Stockholders
34.07M	33.74M	-39.59M	74.16M	48.13M	14.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.84M	72.83M	85.11M	110.75M	86.00M	88.45M
	Total Assets
538.00M	631.69M	539.71M	568.07M	507.22M	476.18M
	Total Debt
57.84M	108.56M	46.22M	27.20M	30.44M	57.66M
	Net Debt
-4.01M	35.72M	-38.89M	-83.55M	-55.56M	-30.79M
	Total Liabilities
156.38M	226.74M	157.37M	141.11M	155.10M	175.56M
	Stockholders Equity
381.61M	404.95M	382.34M	426.97M	352.12M	300.62M
Cash Flow		Free Cash Flow
-15.64M	-32.42M	-27.63M	25.21M	35.65M	-32.67M
	Operating Cash Flow
10.96M	22.29M	54.49M	67.73M	74.88M	-2.49M
	Investing Cash Flow
-65.19M	-71.29M	-81.60M	-33.15M	-44.15M	-45.98M
	Financing Cash Flow
28.16M	36.73M	1.47M	-9.84M	-33.17M	14.03M

NACCO Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 36.38 is above the 20-day moving average (MA) of 35.69, above the 50-day MA of 34.94, and above the 200-day MA of 30.88, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 44.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	70 Outperform	$1.26B	9.22	31.98%	3.10%	-19.21%	-30.92%
SXC	70 Neutral	$697.52M	7.44	14.26%	5.83%	-8.76%	51.59%
NC	68 Neutral	$276.19M	8.03	8.62%	2.52%	14.70%	―
METC	66 Neutral	$495.83M	43.10	-0.08%	2.77%	-10.23%	-100.04%
HCC	65 Neutral	$2.42B	22.88	5.20%	0.68%	-21.04%	-75.78%
Sector *	57 Neutral	$7.16B	3.10	-4.49%	5.66%	0.82%	-49.15%
HNRG	55 Neutral	$735.32M	―	-107.44%	―	-27.04%	-892.84%

NACCO Industries Corporate Events

Lori Robinson Resigns from NACCO Industries Board

On May 27, 2025, Lori Robinson resigned from the Board of Directors of NACCO Industries, Inc., effective immediately. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.

NACCO Industries Approves Amended Equity Compensation Plan

On February 19, 2025, NACCO Industries, Inc. adopted an Amended and Restated Non-Employee Directors’ Equity Compensation Plan, which was approved by stockholders on May 14, 2025. The plan increases the number of Class A Common shares available for issuance to 200,000 and extends the plan term to 2035, impacting the company’s governance and compensation structure. At the Annual Meeting on May 14, 2025, stockholders elected directors, approved the amended compensation plan, endorsed executive compensation, and ratified Ernst & Young LLP as the independent accounting firm.

NACCO Industries Announces Dividend Increase

On May 15, 2025, NACCO Industries, Inc. announced an 11% increase in its regular quarterly cash dividend, raising it to 25.25 cents per share from the previous 22.75 cents. This dividend, applicable to both Class A and Class B Common Stock, will be paid on June 16, 2025, to shareholders recorded by May 30, 2025, reflecting an annual rate increase to $1.01 per share.

NACCO Industries Subsidiary Ends Pension Plan

On April 22, 2025, The Coteau Properties Company, a subsidiary of NACCO Industries, announced the termination of its Pension Plan effective June 30, 2025. The plan, a qualified defined benefit pension plan, will distribute its assets to participants, including Carroll L. Dewing, the company’s Senior Vice President. Mr. Dewing’s benefits were frozen in 2004 but adjusted for cost-of-living until 2013. He will receive his vested benefits, valued at $469,300, in accordance with the plan’s terms.

NACCO Industries Releases Updated Investor Presentation

On April 9, 2025, NACCO Industries, Inc. released an updated investor presentation on its website, providing historical information on the company’s operational results. This update is part of a regulatory filing but is not considered a formal submission under certain securities laws, indicating it is for informational purposes only and not subject to certain legal liabilities.