NACCO Industries Inc (NC) stock analysis

P/E above its 5-year median

NACCO Industries's P/E of 17.9 is above its own 5-year median of 7.8.

P/E above the industry

NACCO Industries's P/E of 17.9 is above the Energy median of 13.8.

EV/EBITDA above its 5-year median

NACCO Industries's EV/EBITDA of 4.4 is above its 5-year median of 3.2.

P/B below the industry

NACCO Industries's price-to-book of 0.60 is below the Energy median of 1.49.

Trading above fair value

The share price of $35.23 is above our fair value estimate of $33.85.

Margin of safety under 20%

The price is 4.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -38.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -48.4% over the last twelve months, against a 5-year average of 3.5% a year.

Growing slower than the industry

Revenue grew 0.5% over the last twelve months; the Energy median is 1.9%.

Guidance lowered

NACCO Industries lowered its remainder of the year investing outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 18.9% over the last twelve months, against 12.4% a year earlier.

Return on equity under 15%

Return on equity was 3.4% over the last twelve months and averaged 7.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

NACCO Industries's return on equity of 3.4% is below the Energy median of 7.2%.

Earnings grew over 5 years

Net income grew 3.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.3% over the last twelve months, against a 5-year average of 11.6%.

Net margin above the industry

NACCO Industries's net margin of 5.3% is above the Energy median of 4.9%.

Low debt

Debt is 1.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 8.8% five years ago to 1.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 493% of total debt.

Interest not well covered

Operating income covers interest expense 4.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.16 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.20; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

NACCO Industries paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; NACCO Industries yields 2.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 51.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.