NACCO Industries (NC) AI Stock Analysis

• Market Cap: $323.60M
• Dividend Yield: 2.32%
• Average Volume (3M): 8.63K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.72
• Revenue Growth: 14.70%
• EPS Growth: N/A
• Country: US
• Employees: 600
• Sector: Energy
• Sector Strength: 51
• Industry: Coal
• EPS (TTM): 0.66
• Shares Outstanding: 5,877,177
• 10 Day Avg. Volume: 11,117
• 30 Day Avg. Volume: 8,632
• PEG Ratio: 0.63
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.61
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: -37.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $46.00 ▲(5.80%Upside)

NACCO Industries has a solid overall performance, bolstered by strong technical indicators and a favorable valuation. The financial performance is stable, but improvements in cash flow conversion are needed. The positive earnings call and recent dividend increase further support the stock's attractiveness.

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 mining operations conducted by its subsidiary, North American Coal Corporation. The company's key revenue streams include long-term mining contracts where they provide comprehensive mining services, including planning, development, operation, and reclamation of mining sites. These contracts are typically with utility companies and industrial clients that require coal for energy production. Additionally, NACCO earns income from royalty agreements and the sale of aggregates used in construction and infrastructure projects. The company's financial performance is influenced by factors such as the demand for coal, energy market conditions, and regulatory changes affecting the mining industry.

NACCO Industries Financial Statement Overview

Summary

NACCO Industries demonstrates a stable financial position with strong equity and improving revenue. However, there are concerns regarding profitability margins and cash flow generation, which could affect future growth.

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
EBITDA	36.98M	63.86M	-32.31M	25.85M	5.96M	-20.72M
Net Income	34.07M	33.74M	-39.59M	74.16M	48.13M	14.79M
Balance Sheet
Total Assets	634.19M	631.69M	539.71M	568.07M	507.22M	476.18M
Cash, Cash Equivalents and Short-Term Investments	61.88M	72.83M	85.11M	110.75M	86.00M	88.45M
Total Debt	104.43M	108.56M	46.22M	27.20M	30.44M	57.66M
Total Liabilities	225.07M	226.74M	157.37M	141.11M	155.10M	175.56M
Stockholders Equity	409.12M	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: 43.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 43.48 is above the 20-day moving average (MA) of 38.12, above the 50-day MA of 36.39, and above the 200-day MA of 31.79, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 74.43 is Negative, neither overbought nor oversold. The STOCH value of 95.09 is Negative, 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
NC	75 Outperform	$323.60M	9.40	8.62%	2.32%	14.70%	―
NRP	70 Neutral	$1.24B	9.06	31.98%	3.18%	-19.21%	-30.92%
SXC	70 Neutral	$692.45M	7.50	14.26%	5.87%	-8.76%	51.59%
METC	69 Neutral	$616.88M	43.10	-0.08%	2.25%	-10.23%	-100.04%
HCC	64 Neutral	$2.29B	21.69	5.20%	0.73%	-21.04%	-75.78%
Sector *	52 Neutral	C$2.91B	-0.88	-3.26%	6.30%	2.20%	-43.43%
HNRG	50 Neutral	$659.25M	―	-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.