📊 NC Key Takeaways
Is Nacco Industries Inc. (NC) a Good Investment?
NACCO exhibits severe operational deterioration with net income collapsing 47.9% YoY despite 16.6% revenue growth, signaling margin compression and cost structure misalignment. The company is generating negative free cash flow of -$36.3M as capital expenditures of $48.6M far exceed operating cash flow of $12.4M, making current cash burn rate unsustainable despite a strong balance sheet.
Revenue grew 16.6% and the company maintains strong liquidity with low leverage and excellent interest coverage. However, margins and earnings fell sharply YoY and heavy capex left free cash flow barely positive, signaling weaker earnings quality. Wait for margin stabilization and stronger cash conversion before turning more constructive.
Nacco Industries Inc. Key Strengths (NC)
- Conservative leverage with Debt/Equity ratio of 0.23x and strong interest coverage of 9.9x
- Exceptional liquidity position with Current Ratio of 3.30x and Quick Ratio of 2.35x
- Substantial equity base of $437.1M and $53.2M cash reserves provide financial cushion
- Positive revenue growth of 16.6% YoY shows market demand
- Operating margins of 17.5% remain reasonable for the sector
- Strong liquidity (current 3.09x, quick 2.17x) and low leverage (D/E 0.23x)
- High interest coverage (19.8x) and positive operating cash flow
- Solid top-line growth (+16.6% YoY)
NC Stock Risks: Nacco Industries Inc. Investment Risks
- Catastrophic profitability decline with net income down 47.9% YoY indicates severe margin compression despite revenue growth
- Negative free cash flow of -$36.3M is structurally unsustainable and threatens financial viability
- Extremely weak capital returns (ROE 2.0%, ROA 1.3%) indicate severe capital inefficiency and value destruction
- High capital intensity with capex at 77% of revenue while generating minimal returns
- Cyclical coal industry exposure amid structural energy transition and regulatory headwinds
- Margin compression with net income down 47.9% YoY and low ROE/ROA
- High capital intensity resulting in weak free cash flow (0.8% margin)
- Cyclical commodity and regulatory risks in coal mining
Key Metrics to Watch
- Free cash flow trajectory and operating cash flow sustainability
- Net margin recovery and operating expense control
- Capital expenditure levels and return on invested capital
- Coal pricing trends and demand outlook
- Cash depletion rate relative to reserve duration
- Operating margin
- Free cash flow margin
Nacco Industries Inc. (NC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.30x current ratio provides a solid financial cushion.
NC Profit Margin, ROE & Profitability Analysis
NC vs Materials Sector: How Nacco Industries Inc. Compares
How Nacco Industries Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nacco Industries Inc. Stock Overvalued? NC Valuation Analysis 2026
Based on fundamental analysis, Nacco Industries Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nacco Industries Inc. Balance Sheet: NC Debt, Cash & Liquidity
NC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nacco Industries Inc.'s revenue has grown significantly by 44% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.55 reflects profitable operations.
NC Revenue Growth, EPS Growth & YoY Performance
NC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $62.8M | $4.9M | $0.66 |
| Q3 2025 | $61.7M | $3.3M | $1.78 |
| Q2 2025 | $52.3M | $3.3M | $0.44 |
| Q1 2025 | $53.3M | $4.6M | $0.61 |
| Q3 2024 | $46.5M | $2.5M | $-0.51 |
| Q2 2024 | $52.3M | $2.5M | $0.34 |
| Q1 2024 | $50.1M | $4.6M | $0.61 |
| Q3 2023 | $46.5M | $2.5M | $-0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nacco Industries Inc. Dividends, Buybacks & Capital Allocation
NC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nacco Industries Inc. (CIK: 0000789933)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NC
What is the AI rating for NC?
Nacco Industries Inc. (NC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NC's key strengths?
Claude: Conservative leverage with Debt/Equity ratio of 0.23x and strong interest coverage of 9.9x. Exceptional liquidity position with Current Ratio of 3.30x and Quick Ratio of 2.35x. ChatGPT: Strong liquidity (current 3.09x, quick 2.17x) and low leverage (D/E 0.23x). High interest coverage (19.8x) and positive operating cash flow.
What are the risks of investing in NC?
Claude: Catastrophic profitability decline with net income down 47.9% YoY indicates severe margin compression despite revenue growth. Negative free cash flow of -$36.3M is structurally unsustainable and threatens financial viability. ChatGPT: Margin compression with net income down 47.9% YoY and low ROE/ROA. High capital intensity resulting in weak free cash flow (0.8% margin).
What is NC's revenue and growth?
Nacco Industries Inc. reported revenue of $62.8M.
Does NC pay dividends?
Nacco Industries Inc. pays dividends, with $1.9M distributed to shareholders in the trailing twelve months.
Where can I find NC SEC filings?
Official SEC filings for Nacco Industries Inc. (CIK: 0000789933) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NC's EPS?
Nacco Industries Inc. has a diluted EPS of $1.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Nacco Industries Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NC stock overvalued or undervalued?
Valuation metrics for NC: ROE of 2.0% (sector avg: 14%), net margin of 14.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NC's AI grade for 2026?
Our dual AI analysis gives Nacco Industries Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NC's free cash flow?
Nacco Industries Inc.'s operating cash flow is $12.4M, with capital expenditures of $48.6M. FCF margin is -57.7%.
How does NC compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.1% (avg: 10%), ROE 2.0% (avg: 14%), current ratio 3.30 (avg: 1.6).