Company Overview
NN, Inc., operating under the ticker NNBR, functions as a designer, manufacturer, and seller of high-precision components and assemblies serving various end markets across the United States, China, Brazil, Mexico, Germany, Poland, and internationally. The company is classified within the Industrials sector and specifically operates in the Conglomerates industry, a designation that reflects its diversified operations across multiple business lines rather than a single focused product line. This conglomerate structure encompasses two primary segments, Mobile Solutions and Power Solutions, which collectively support its global footprint and client base. The company's scale is defined by a market capitalization of $75.80M and annual revenue of $422.21M, supported by an employee workforce of 2300 individuals. These valuation and revenue figures indicate that NN, Inc. operates as a mid-sized entity with a relatively modest market presence compared to large-cap industrials, suggesting a niche position where profitability metrics are critical for capital appreciation rather than sheer revenue dominance.
Financial Health
The company reported revenue of $422.21M over the trailing twelve months, yet it recorded a net income of $-52,916,000 and an EBITDA of $17.81M. The significant gap between positive revenue and substantial negative net income reveals a cost structure where operating expenses, likely driven by the conglomerate nature of the business and international operations, severely erode bottom-line profitability despite generating cash from core activities. While the net loss is stark, the company maintains a positive EBITDA of $17.81M, indicating that earnings before interest, taxes, depreciation, and amortization remain positive, though the net income figure suggests high interest or tax obligations or significant non-operating charges. The free cash flow stands at $3.34M, which represents a critical source of liquidity that provides the company with financial flexibility to fund operations, service debt, or pursue strategic acquisitions without immediate reliance on external equity financing. Margin analysis shows a Gross Margin of 14.2%, which indicates moderate pricing power or high input costs typical of precision manufacturing; however, the Operating Margin of -22.0% and Profit Margin of -8.1% demonstrate that overhead costs are currently exceeding operating revenues, resulting in a consolidated loss. On the balance sheet, the company holds $11.38M in cash against $211.34M in total debt, creating a scenario where debt significantly outweighs liquid assets, and the Debt to Equity ratio of 142.53 confirms a highly leveraged financial position that requires consistent cash flow generation to manage. The Current Ratio of 1.83 suggests that the company possesses sufficient current assets to cover its short-term liabilities, indicating adequate short-term liquidity despite the long-term debt burden. Return on Equity is -21.2% and Return on Assets is -2.5%, metrics that reveal that management is currently destroying value relative to the capital invested in the business and the assets utilized to generate sales.
Valuation Assessment
The trailing twelve-month P/E ratio is listed as N/A due to the negative net income, while the forward P/E stands at 6.47, implying that the market is pricing the stock based on anticipated future earnings recovery rather than current profitability. The Price to Book ratio is 2.23, which indicates that the stock is trading at a premium of more than double its book value, a metric often seen in capital-intensive industries where asset values may not fully reflect intangible value or future growth potential. Alternative valuation metrics include a Price to Sales ratio of 0.18 and an EV/EBITDA of 21.90; the low multiple relative to sales suggests the market is cautious about revenue quality, while the EV/EBITDA multiple above 20 reflects the high debt load and the requirement for significant earnings turnaround to justify the enterprise value. The stock has a 52-Week High of $2.67 and a 52-Week Low of $1.10, meaning the current price sits somewhere within this established volatility range, reflecting the uncertainty surrounding its earnings trajectory. The Beta value is 2.27, which indicates that the stock price is more than twice as volatile as the broader market, signifying high sensitivity to market swings and sector-specific risks.
Growth & Income
Revenue growth year-over-year is -1.7%, and earnings growth is N/A due to the current net loss, indicating that the company is currently in a contractionary phase regarding top-line sales rather than a period of expansion. Since the company is not a dividend payer, with a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute income to shareholders, implying that any retained earnings are theoretically available for reinvestment or debt reduction rather than payout. The absence of a dividend yield combined with negative earnings growth suggests that the company is currently prioritizing capital preservation and operational restructuring over income generation or expansion spending. Consequently, the overall growth and income profile for NN, Inc. is characterized by a lack of current income distribution and a contraction in revenue that requires a successful turnaround to restore positive earnings growth.