Bedrijfsoverzicht
NN, Inc. is a specialized manufacturer that designs, produces, and markets high-precision components and assemblies serving a diverse array of end markets across the United States, China, Brazil, Mexico, Germany, Poland, and various international locations. Operating within the Industrials sector under the specific industry classification of Conglomerates, the company functions through two distinct business segments: Mobile Solutions and Power Solutions. The organization currently employs a workforce of 2,300 individuals and holds a total market capitalization of $76.30M, generating annual revenue of $422.21M based on trailing twelve-month figures. These financial dimensions indicate that NN, Inc. operates as a mid-sized entity within the industrial conglomerate space, where the relatively modest market cap compared to its revenue base suggests a valuation that may be sensitive to market sentiment or specific sector headwinds affecting its consolidated performance.
Financiële gezondheid
The company reported a total revenue of $422.21M for the trailing twelve months, yet this figure stands in stark contrast to a net income of -$52,916,000, revealing a significant cost structure issue where expenses substantially outpaced top-line growth. Despite the negative net income, the entity maintains a positive EBITDA of $17.81M, indicating that while accounting costs and taxes erode bottom-line profitability, core operational cash generation remains intact. This financial reality is further clarified by the free cash flow of $3.34M, which provides the company with a limited but existing degree of financial flexibility to fund operations or invest in necessary capital expenditures without immediate reliance on external financing. The profitability metrics are characterized by a gross margin of 14.2%, an operating margin of -22.0%, and a profit margin of -8.1%, collectively demonstrating that while the production of components retains some pricing power, overhead costs and other operational expenses are currently consuming operating income to the extent that the operating margin is deeply negative. On the balance sheet side, the company holds cash reserves of $11.38M against a total debt obligation of $211.34M, resulting in a debt-to-equity ratio of 142.53, which signifies a highly leveraged capital structure rather than a conservative stance. Liquidity in the short term is supported by a current ratio of 1.83, suggesting that current assets are sufficient to cover current liabilities, though the high leverage increases the risk profile associated with any potential cash flow disruptions. Furthermore, the return on equity stands at -21.2% and the return on assets is -2.5%, metrics that collectively reveal that management is currently unable to generate positive returns on the capital invested by shareholders or the total asset base, reflecting the impact of the reported net losses on overall efficiency.
Waarderingsbeoordeling
Valuation metrics for NN, Inc. present a complex picture, with a trailing twelve-month P/E ratio listed as N/A due to the negative earnings, while the forward P/E ratio is calculated at 6.51, implying that the market is pricing in a significant turnaround in earnings trajectory expected in the coming fiscal periods. The price-to-book ratio sits at 2.25, indicating that the market values the company at more than double its book value, a premium that investors may attribute to future growth potential in its mobile and power solution segments despite current earnings deficits. Alternative valuation measures provide additional context, with a price-to-sales ratio of 0.18 and an EV/EBITDA of 21.93; the low multiple relative to sales suggests the market is cautious about revenue quality, while the high EV/EBITDA relative to the negative net income highlights the disconnect between operational cash earnings and reported profitability. The stock's trading range over the past year has been bounded by a 52-week high of $2.63 and a 52-week low of $1.10, establishing a wide volatility band where the current market price fluctuates significantly relative to these historical extremes. The company exhibits a beta of 2.22, which quantifies that the stock price is expected to be more than twice as volatile as the broader market index, reflecting the high-risk nature of a leveraged industrial conglomerate with negative earnings.
Growth & Income
In terms of growth dynamics, the company experienced a revenue decline of -1.7% year-over-year, while earnings growth is listed as N/A due to the recent loss position; this contraction in revenue indicates that the business is currently facing headwinds rather than expansion, and the absence of earnings growth data reinforces the challenges in profitability. Regarding income generation, NN, Inc. does not distribute dividends to shareholders, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all of its cash flow to fund operations, repay debt, or potentially invest in future capabilities rather than rewarding income-seeking investors. This strategy of zero dividend payout is consistent with firms in a turnaround phase or those with negative net income, as the payout ratio is not sustainable when earnings are negative. Overall, the growth and income profile of NN, Inc. is characterized by a contraction in top-line sales, a complete lack of dividend income, and a capital structure that prioritizes financial survival and operational restructuring over shareholder distributions.