NN (NNBR) AI Stock Analysis

• Market Cap: $106.22M
• Dividend Yield: N/A
• Average Volume (3M): 171.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: -5.11%
• EPS Growth: 17.87%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 66
• Industry: Conglomerates
• EPS (TTM): -1.11
• Shares Outstanding: 49,869,510
• 10 Day Avg. Volume: 145,280
• 30 Day Avg. Volume: 171,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.28
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 3.50
• 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: $6.50
• Price Target Upside: 205.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

NN Inc. is navigating through significant financial challenges, characterized by declining revenues and persistent losses. While strategic initiatives and new business wins are promising, operational and market volatility risks remain high. Technical indicators suggest bearish sentiment, compounded by a negative P/E ratio and lack of dividend yield, which weighs on its overall attractiveness.

NN Business Overview & Revenue Model

Company Description

NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for general industrial and automotive end markets. This segments products are used in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as use in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control, flight control, and military devices. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace, defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

NN, Inc. generates revenue primarily through the sale of its precision-engineered components and assemblies to original equipment manufacturers (OEMs) and other industrial clients in its target markets. The company's key revenue streams include direct product sales, long-term supply agreements, and value-added services such as design and engineering support. NN leverages its technological expertise, manufacturing capabilities, and customer relationships to secure contracts and maintain a steady flow of business. Additionally, strategic partnerships and collaborations with customers and suppliers play a significant role in enhancing product offerings and expanding market reach, contributing to the company's earnings.

NN Financial Statement Overview

Summary

NN faces significant financial challenges with declining revenues, persistent losses, and operational inefficiencies. The balance sheet shows reduced leverage risk but ongoing equity reduction and negative returns. Cash flow improvements are overshadowed by liquidity pressures.

Income Statement

NN has experienced declining revenues over the past few years, with a noticeable drop from $847M in 2019 to $464M in 2024. The company also reports persistent negative net income, indicating profitability challenges. Negative EBIT margins further highlight operational inefficiencies. However, the gross profit margin was strong in 2024, showing resilience in cost management, albeit with the entire revenue recognized as gross profit, possibly due to data anomalies.

Balance Sheet

The debt-to-equity ratio has improved significantly from 3.35 in 2019 to 0.72 in 2024, signaling reduced leverage risk, but remains substantial. Stockholders' equity has decreased over time, impacting the equity ratio and showing a decline in asset financing through equity. Return on equity remains negative, reflecting ongoing losses and a potential risk for investors.

Cash Flow

Operating cash flow has shown some positive movement in 2024, but free cash flow remains modest, indicating limited cash available after capital expenditures. The 2024 operating cash flow to net income ratio is positive, suggesting efficient cash conversion despite net losses. However, cash flow from financing and investing activities shows a pattern of outflows, indicating pressure on liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
464.29M	489.27M	498.74M	477.58M	427.53M
	Gross Profit
69.48M	70.09M	77.63M	87.59M	83.94M
	EBIT
-27.55M	-21.80M	-16.03M	-5.02M	-24.30M
	EBITDA
21.96M	15.40M	31.63M	36.34M	-96.42M
	Net Income Common Stockholders
-43.02M	-50.15M	-32.69M	-20.69M	-143.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.13M	21.90M	12.81M	28.66M	48.14M
	Total Assets
456.89M	510.88M	546.13M	579.10M	624.96M
	Total Debt
53.37M	212.83M	209.41M	211.13M	143.76M
	Net Debt
35.24M	190.93M	196.61M	182.47M	95.62M
	Total Liabilities
382.37M	308.08M	295.16M	354.92M	370.81M
	Stockholders Equity
74.52M	202.80M	250.97M	224.19M	254.15M
Cash Flow		Free Cash Flow
11.07M	8.85M	-10.23M	-2.63M	-8.22M
	Operating Cash Flow
11.07M	29.34M	7.72M	15.59M	15.55M
	Investing Cash Flow
-1.01M	-17.60M	-17.49M	-36.10M	719.28M
	Financing Cash Flow
-13.24M	-2.88M	-5.19M	2.56M	-714.85M

NN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNBR, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.86, and below the 200-day MA of 3.41, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNBR.

NN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	82 Outperform	$477.40M	3.22	10.41%	9.27%	-11.02%	-51.66%
LEA	64 Neutral	$4.42B	9.18	10.81%	3.74%	-0.70%	-7.27%
AXL	62 Neutral	$422.45M	12.41	5.79%	―	0.75%	―
BWA	62 Neutral	$6.27B	18.98	6.46%	1.62%	-11.10%	-46.32%
Sector *	62 Neutral	$8.08B	13.63	3.82%	3.13%	3.58%	-14.35%
DAN	54 Neutral	$1.81B	―	-3.92%	3.21%	-2.57%	-248.28%
NNBR	43 Neutral	$106.22M	―	-20.64%	―	-5.11%	17.87%

NN Corporate Events

NN Highlights Strategic Initiatives at Sidoti Conference

NN, Inc. presented at the Sidoti Small-Cap Virtual Conference on March 20, 2025, highlighting its strategic initiatives and operational advancements. The company reported significant progress in its enterprise transformation, achieving $150 million in new business wins from 2023 to Q1 2025, and targeting further growth with a focus on medical and electrical markets. NN’s global manufacturing platform and strategic positioning are expected to enhance its competitiveness and drive future growth.

NN, Inc. Accelerates Transformation Plans in 2025

On March 5, 2025, NN, Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a decrease in net sales by 5.1% compared to 2023, primarily due to the sale of its Lubbock operations and unfavorable foreign exchange effects. Despite these challenges, the company achieved $73 million in new business wins in 2024, surpassing its previous record, and is on track with its 5-year sales growth and diversification goals. The company is accelerating its transformation plans in 2025, focusing on launching new products, improving underperforming plants, and expanding its US electrical grid power business. The company also reported significant improvements in adjusted EBITDA and free cash flow, indicating progress in its transformation efforts.

NN, Inc. Highlights Transformation at Sidoti Conference

NN, Inc. announced its participation in the Sidoti Micro Cap Conference on January 22, 2025, where it will showcase its ongoing enterprise transformation and strategic growth initiatives. The company has achieved significant business wins, focusing on expanding its footprint in the medical and electrical markets, and aims to enhance its operational efficiency through precision automation. With a new leadership team, NN, Inc. is executing a three-phase transformation plan to improve profitability and cash flow, supported by strategic refinancing to optimize its capital structure and competitiveness.

NN, Inc. Announces New Credit Facility and Strategic Moves

NN, Inc. has announced a new $50 million asset-backed revolving credit facility, which marks a significant step in its balance sheet optimization strategy. This new credit agreement will aid in refinancing existing obligations and is expected to enhance the company’s financial flexibility, reflecting market confidence in NN, Inc.’s strategic transformation and growth initiatives.