📊 NC Key Takeaways
Is Nacco Industries Inc. (NC) a Good Investment?
Despite 16.6% revenue growth, net income collapsed 47.9% YoY, indicating severe operational deterioration and cost pressures that cannot be absorbed or passed through. Minimal free cash flow generation (0.8% margin) combined with capital-intensive operations and anemic returns (ROE 4.1%, ROA 2.7%) present a concerning fundamental picture, despite adequate balance sheet strength.
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.
Why Buy Nacco Industries Inc. Stock? NC Key Strengths
- Strong balance sheet with low leverage (Debt/Equity 0.23x) and substantial liquidity (3.09x current ratio)
- Robust interest coverage ratio of 19.8x eliminates solvency concerns
- Positive operating cash flow of $50.9M provides a cash generation base
- 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
- Earnings collapse of 47.9% YoY contradicts revenue growth, signaling fundamental operational distress and margin compression
- Critically weak free cash flow generation (0.8% FCF margin) leaves minimal capital for shareholder returns or strategic flexibility
- Cyclical commodity exposure combined with low returns on assets (2.7%) and equity (4.1%) suggest structural profitability challenges in the bituminous coal sector
- 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
- Operating and gross margin trend reversal—whether compression stabilizes or continues deteriorating
- Free cash flow as percentage of revenue—sustainability of 0.8% margin or recovery to healthier levels
- Capital expenditure efficiency—whether elevated capex ($48.6M) translates to future revenue or margin improvement
- Operating margin
- Free cash flow margin
Nacco Industries Inc. (NC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.09x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $61.4M | $2.5M | $0.34 |
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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 58% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NC's key strengths?
Claude: Strong balance sheet with low leverage (Debt/Equity 0.23x) and substantial liquidity (3.09x current ratio). Robust interest coverage ratio of 19.8x eliminates solvency concerns. 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: Earnings collapse of 47.9% YoY contradicts revenue growth, signaling fundamental operational distress and margin compression. Critically weak free cash flow generation (0.8% FCF margin) leaves minimal capital for shareholder returns or strategic flexibility. 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 $277.2M.
Does NC pay dividends?
Nacco Industries Inc. pays dividends, with $7.3M 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 $2.35.
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 rating reflects both perspectives for balanced insights.
Is NC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Nacco Industries Inc. has a SELL rating with 58% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NC stock overvalued or undervalued?
Valuation metrics for NC: ROE of 4.1% (sector avg: 14%), net margin of 6.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NC stock in 2026?
Our dual AI analysis gives Nacco Industries Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NC's free cash flow?
Nacco Industries Inc.'s operating cash flow is $50.9M, with capital expenditures of $48.6M. FCF margin is 0.8%.
How does NC compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.3% (avg: 10%), ROE 4.1% (avg: 14%), current ratio 3.09 (avg: 1.6).