NACCO Industries (NC) AI Stock Analysis

• Market Cap: $279.07M
• Dividend Yield: 2.5%
• Average Volume (3M): 5.92K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.75
• Revenue Growth: 27.25%
• EPS Growth: N/A
• Country: US
• Employees: 600
• Sector: Energy
• Sector Strength: 44
• Industry: Coal
• EPS (TTM): 0.44
• Shares Outstanding: 5,888,500
• 10 Day Avg. Volume: 5,742
• 30 Day Avg. Volume: 5,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 12.02
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $40.00
• Price Target Upside: 6.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $39.00 ▲(4.14% Upside)

NACCO Industries' overall stock score is primarily influenced by moderate financial performance and valuation metrics. While the company shows stable revenue growth and profitability, cash flow challenges and technical indicators suggest caution. The earnings call further highlights operational challenges, impacting the overall outlook.

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 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 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	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

• Technical Analysis Sentiment: Neutral
• Last Price: 37.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NC, the sentiment is Neutral. The current price of 37.45 is below the 20-day moving average (MA) of 38.70, below the 50-day MA of 39.23, and above the 200-day MA of 33.97, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 36.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NC.

NACCO Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	73 Outperform	$1.36B	9.71	28.59%	4.08%	-20.92%	-26.59%
SXC	67 Neutral	$684.10M	9.38	11.20%	6.13%	-7.70%	17.73%
Sector *	65 Neutral	$14.84B	8.64	2.77%	5.45%	4.51%	-62.52%
HCC	64 Neutral	$3.36B	82.93	1.95%	0.52%	-27.62%	-90.48%
METC	63 Neutral	$1.67B	43.10	-5.55%	1.78%	-12.79%	-134.14%
NC	60 Neutral	$279.07M	8.80	7.87%	2.50%	27.25%	―
HNRG	49 Neutral	$738.06M	―	-89.44%	―	-14.68%	-3155.06%

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.