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NACCO Industries (NC)
NYSE:NC
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NACCO Industries
(NYSE:NC)
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Rating:61Neutral
Price Target:
$41.00
▼(-6.48% Downside)
NACCO Industries' overall stock score reflects moderate financial performance with stable revenue growth and profitability, but significant cash flow challenges. The technical analysis indicates a lack of strong momentum, while the valuation suggests the stock is undervalued. The earnings call highlights both growth prospects and operational challenges, leading to a balanced outlook.
NACCO Industries (NC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$326.68M
Dividend Yield2.19%
Average Volume (3M)9.65K
Price to Earnings (P/E)10.3
Beta (1Y)0.78
Revenue Growth27.25%
EPS GrowthN/A
CountryUS
Employees600
SectorEnergy
Sector Strength52
IndustryCoal
Share Statistics
EPS (TTM)0.44
Shares Outstanding5,888,500
10 Day Avg. Volume13,664
30 Day Avg. Volume9,650
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit12.02
Enterprise Value/Ebitda7.49
Forecast
1Y Price Target
$41.00Price Target Upside-6.48% Downside
Rating ConsensusHold
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 and the sale of consumer appliances. The North American Coal Corporation extracts and sells lignite coal to utility companies and other industrial customers under long-term contracts, ensuring a steady revenue stream. Additionally, Hamilton Beach Brands generates income by selling a wide range of kitchen appliances to retailers and online marketplaces, capitalizing on brand recognition and consumer demand. The company also benefits from strategic partnerships and contracts with key clients that provide stability and predictability in earnings, while its focus on operational efficiency and cost management further enhances profitability.
NACCO Industries Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While there is significant revenue growth and promising future prospects, including strategic acquisitions and new equipment implementations, the company also faces operational disruptions, decreased net income, and delayed profitability in some segments. The balance between these positive and negative aspects suggests a nuanced view of the company's current situation.Q2-2025 Updates
Positive Updates
Revenue Growth
Consolidated revenues were $68 million, up 30% year-over-year, driven by the Utility Coal Mining segment as Mississippi Lignite Mining Company's customer returned to more normal operations.
Minerals and Royalties Segment Growth
Operating profit and EBITDA increased due to a 30% rise in revenues, largely from higher natural gas prices. A $4.2 million strategic acquisition expanded their mineral interest within the Midland Basin.
Future Growth Prospects in Contract Mining
The company is providing contract mining services for several top U.S. producers of aggregates. The Thacker Pass Project is expected to provide enhanced income and lasting cash flow as it transitions to full-scale lithium production in late 2027.
New Equipment and Efficiency Improvements
Two new MTech draglines have been commissioned, enhancing operational efficiency by simplifying maintenance, increasing uptime, and improving efficiency.
Negative Updates
Operational Disruptions
Temporary operational challenges in the Utility Coal Mining and Contract Mining segments affected results. Mississippi Lignite Mining Company's customer inefficiencies and mechanical issues at quarries contributed to fewer trends delivered and higher operating costs.
Decreased Net Income
Consolidated net income was $3.3 million, down from $6 million in the prior year, with diluted earnings per share decreasing 46% year-on-year, reflecting operational headwinds and a strong prior year comparison.
Delays in Mitigation Resources Profitability
Due to delays in federal permitting, Mitigation Resources' full-year profitability is now expected in 2026 instead of 2025.
Lower Full-Year Operating Profit Expectation
Full-year operating profit is anticipated to fall short of last year due to a large gain on sale in the previous year and a noncash pension settlement charge.
Company Guidance
During NACCO Industries' second quarter 2025 earnings call, various metrics were discussed, reflecting the company's financial performance and outlook. Consolidated revenues increased by 30% year-over-year to $68 million, primarily driven by the Utility Coal Mining segment. However, operational disruptions in utility coal and contract mining, along with higher costs, led to a decrease in consolidated net income to $3.3 million, down from $6 million the previous year. Diluted earnings per share fell by 46% year-over-year, and EBITDA declined to $9.3 million from $13.5 million. Despite these challenges, NACCO anticipates significant improvement in the second half of 2025, expecting a substantial increase in operating profit, although full-year profit will fall short compared to 2024 due to a prior large gain on sale. The company is also forecasting up to $86 million in capital spending for 2025, focusing on new business development, with anticipated cash flow improvements as returns from previous investments materialize.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%.65
Positive
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.70
Positive
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 265.88M | 237.71M | 214.79M | 241.72M | 191.85M | 128.43M |
| Gross Profit | 31.95M | 29.76M | 14.59M | 67.84M | 43.45M | 16.97M |
| EBITDA | 51.29M | 63.86M | -32.31M | 25.85M | 5.96M | -20.72M |
| Net Income | 31.36M | 33.74M | -39.59M | 74.16M | 48.13M | 14.79M |
Balance Sheet | ||||||
| Total Assets | 631.31M | 631.69M | 539.71M | 568.07M | 507.22M | 476.18M |
| Cash, Cash Equivalents and Short-Term Investments | 49.40M | 72.83M | 85.11M | 110.75M | 86.00M | 88.45M |
| Total Debt | 103.66M | 110.53M | 46.22M | 27.20M | 30.44M | 57.66M |
| Total Liabilities | 218.19M | 226.74M | 157.37M | 141.11M | 155.10M | 175.56M |
| Stockholders Equity | 413.12M | 404.95M | 382.34M | 426.97M | 352.12M | 300.62M |
Cash Flow | ||||||
| Free Cash Flow | -22.70M | -32.42M | -27.63M | 25.21M | 35.65M | -32.67M |
| Operating Cash Flow | -872.00K | 22.29M | 54.49M | 67.73M | 74.88M | -2.49M |
| Investing Cash Flow | -59.05M | -71.29M | -81.60M | -33.15M | -44.15M | -45.98M |
| Financing Cash Flow | 20.86M | 36.73M | 1.47M | -9.84M | -33.17M | 14.03M |
NACCO Industries Technical Analysis
Positive
43.84
Price Trends
39.11
Positive
38.39
Positive
35.14
Positive
Market Momentum
1.24
Negative
61.26
Neutral
77.24
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 43.84 is above the 20-day moving average (MA) of 40.75, above the 50-day MA of 39.11, and above the 200-day MA of 35.14, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.37B | 9.78 | 2.97% | 4.05% | -20.92% | -26.59% | |
68 Neutral | $694.26M | 9.52 | 10.86% | 5.85% | -7.70% | 17.73% | |
67 Neutral | $1.91B | -84.99 | -5.70% | 1.52% | -12.79% | -134.14% | |
64 Neutral | $3.35B | 82.79 | 1.94% | 0.50% | -27.62% | -90.48% | |
61 Neutral | $326.68M | 10.31 | 7.87% | 2.19% | 27.25% | ― | |
52 Neutral | $823.22M | -4.16 | -160.46% | ― | -14.68% | -3155.06% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
NC
NACCO Industries
43.84
16.26
58.96%
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19.14
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SXC
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8.20
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-0.61%
METC
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192.64%
HCC
Warrior Met Coal
63.72
0.20
0.31%
NACCO Industries Corporate Events
Executive/Board Changes
Lori Robinson Resigns from NACCO Industries Board
Neutral
Jun 2, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.