NN (NNBR) AI Stock Analysis

• Market Cap: $131.28M
• Dividend Yield: N/A
• Average Volume (3M): 103.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: -9.86%
• EPS Growth: 1.22%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 74
• Industry: Conglomerates
• EPS (TTM): 0.02
• Shares Outstanding: 50,298,510
• 10 Day Avg. Volume: 54,938
• 30 Day Avg. Volume: 103,946
• 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: 3.12
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 8.04
• Enterprise Value/Ebitda: 27.79
• 1Y Price Target: $4.63
• Price Target Upside: 85.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $2.50 ▲(0.40% Upside)

NN's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. However, the company's strategic initiatives and improvements in cash flow and leverage provide some optimism. Technical analysis indicates short-term positive momentum, while valuation remains a concern due to ongoing losses. The earnings call and corporate events suggest potential for future growth, but current economic challenges persist.

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 through the production and sale of precision components across its three segments. The Mobile Solutions segment primarily provides parts for automotive applications, which is a significant revenue driver given the size of the automotive market. The Power Solutions segment focuses on energy applications, while the Medical segment supplies components for medical devices, which is a rapidly growing area. Key revenue streams include direct sales to manufacturers, long-term contracts with OEMs (original equipment manufacturers), and partnerships with industry leaders to develop specialized products. Additionally, NNBR benefits from economies of scale and operational efficiencies, allowing them to optimize production costs and enhance margins.

NN Financial Statement Overview

Summary

NN faces significant challenges with declining revenue and profitability, as evidenced by negative margins and ongoing losses. While there are improvements in leverage and cash flow generation, the company needs to address its operational inefficiencies and return to profitability to ensure long-term sustainability. The financial statements reflect a company in transition, with potential for recovery if strategic adjustments are made.

Income Statement

The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -3.36% in the TTM period. Gross profit margins have decreased from 18.34% in 2021 to 11.75% in the TTM period. Net profit margins are negative, indicating ongoing losses, with a net profit margin of -8.84% in the TTM period. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement shows a concerning trend of declining profitability and revenue.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.76 in 2024 to 1.31 in the TTM period, indicating a reduction in leverage. However, the return on equity remains negative, at -30.67% in the TTM period, reflecting ongoing losses. The equity ratio has decreased, suggesting a decline in the proportion of equity financing. The balance sheet shows some improvement in leverage, but profitability remains a concern.

Cash Flow

The company has shown improvement in free cash flow, with a growth rate of 43.92% in the TTM period. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is also positive, suggesting better cash management. Overall, the cash flow statement shows positive trends in cash generation, although profitability challenges persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	433.71M	464.29M	489.27M	498.74M	477.58M	427.53M
Gross Profit	50.98M	69.48M	70.09M	77.63M	87.59M	83.94M
EBITDA	14.75M	20.72M	15.40M	31.63M	36.34M	-96.42M
Net Income	-38.32M	-38.27M	-50.15M	-32.69M	-20.69M	-143.12M
Balance Sheet
Total Assets	460.76M	456.89M	510.88M	546.13M	579.10M	624.96M
Cash, Cash Equivalents and Short-Term Investments	9.54M	18.13M	21.90M	12.81M	28.66M	48.14M
Total Debt	213.04M	205.99M	212.83M	209.41M	211.13M	143.76M
Total Liabilities	298.70M	288.87M	308.08M	295.16M	354.92M	370.81M
Stockholders Equity	162.06M	74.52M	202.80M	250.97M	224.19M	254.15M
Cash Flow
Free Cash Flow	13.69M	-7.24M	8.85M	-10.23M	-2.63M	-8.22M
Operating Cash Flow	7.60M	11.07M	29.34M	7.72M	15.59M	15.55M
Investing Cash Flow	628.00K	-1.01M	-17.60M	-17.49M	-36.10M	719.28M
Financing Cash Flow	-13.25M	-13.24M	-2.88M	-5.19M	2.56M	-714.85M

NN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.49
• 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 NNBR, the sentiment is Positive. The current price of 2.49 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.21, and below the 200-day MA of 2.61, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNBR.

NN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPLP	71 Outperform	$804.33M	4.24	18.71%	―	5.04%	7.61%
RCMT	67 Neutral	$198.97M	15.20	41.02%	―	11.01%	-15.44%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
NNBR	57 Neutral	$131.28M	―	-21.54%	―	-9.86%	1.22%
MATW	53 Neutral	$766.39M	―	-12.81%	4.02%	-11.13%	-351.71%
FIP	48 Neutral	$476.46M	―	-9.32%	2.15%	16.07%	30.39%
TUSK	44 Neutral	$113.26M	―	-27.32%	―	-19.00%	48.70%

NN Corporate Events

NN Reports Q2 2025 Results with Improved EBITDA

On August 6, 2025, NN, Inc. reported its second quarter results, highlighting improvements in operating income, adjusted EBITDA, and new business programs. Despite a 12.3% decrease in net sales compared to the same period in 2024, the company managed to increase its adjusted income from operations and adjusted EBITDA. NN has been proactive in expanding its business development activities, launching over 100 new programs expected to add significant future sales. The company is also investing in growth capital expenditures and has initiated a transformation plan to mitigate the impact of a soft automotive market. NN maintains its full-year 2025 guidance, with expectations of net sales ranging between $430 to $460 million and adjusted EBITDA between $53 to $63 million.