NACCO Industries Inc (NC) Stock Analysis
Verdict: AVOID
Erratic coal/minerals earnings and negative FCF weigh on NC as it trades near 52W lows ($37.72) despite cheap P/B of 0.67x.
Investment score: 37/100
Analysis as of
Is NACCO Industries Inc stock worth reviewing? The TradeMates thesis
The TradeMates model sees NACCO Industries as an unreliable value candidate. Operating cash flows are consumed by heavy capital expenditure, resulting in negative TTM free cash flow yield (-3.1%) and negative TTM operating margins (-9.5%). Trading near 52-week lows at $38.86, the stock lacks positive fundamental or technical catalysts.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 35/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
NACCO Industries Inc opportunities and risks
What speaks for NC
- Deep discount to tangible net worth with P/B at 0.67x
What speaks against NC
- Secular decline and plant retirements in core Coal Mining segment
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NC | 16.8x | 1.0x | 9.0x | 18.3% | 6.2% | -3.1% |
| ARLP | 12.5x | 1.5x | 5.8x | 24.4% | 12.3% | 10.5% |
| UUUU | n/a | 28.1x | n/a | 43.2% | -77.3% | -3.7% |
| LEU | 57.0x | 5.7x | 27.8x | 23.3% | 10.2% | -8.2% |
| NRP | 13.8x | 7.5x | 10.5x | 81.6% | 54.0% | 11.0% |
| URE.TO | n/a | 13.8x | n/a | 11.0% | -252.3% | -21.6% |
| Peer median | 12.5x | 7.5x | 5.8x | 24.4% | 10.2% | -3.7% |
Frequently asked questions about NACCO Industries Inc (NC)
Is NC stock a good investment?
The TradeMates model rates NACCO Industries Inc as AVOID with an investment score of 37/100. The TradeMates model sees NACCO Industries as an unreliable value candidate. Operating cash flows are consumed by heavy capital expenditure, resulting in negative TTM free cash flow yield (-3.1%) and negative TTM operating margins (-9.5%). Trading near 52-week lows at $38.86, the stock lacks positive fundamental or technical catalysts. This is algorithmic model output, not personal investment advice.
Is NC stock a buy?
The TradeMates model verdict for NC is AVOID with an investment score of 37/100. Treat this as a model signal to review, not a personal buy recommendation.