| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
NNBR Overview
NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets.
Rewards
Risk Analysis
No risks detected for NNBR from our risk checks.
NN Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.96 |
| 52 Week High | US$4.71 |
| 52 Week Low | US$9.62 |
| Beta | 3.21 |
| 1 Month Change | -5.34% |
| 3 Month Change | -27.27% |
| 1 Year Change | -13.89% |
| 3 Year Change | -57.75% |
| 5 Year Change | -71.25% |
| Change since IPO | -30.25% |
Recent News & Updates
NN Inc.: The Company's Balance Sheet Is Very Weak
The aggressive M&A strategy turned out to be a complete disaster. The company paid most of its debt by divesting the Life Sciences division. The company is barely generating enough cash to cover interest expenses and capital expenditures. The dividend was canceled, and won't return in a long, long time. NN, Inc. is a high-risk investment.
NN (NASDAQ:NNBR) Has A Somewhat Strained Balance Sheet
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Shareholder Returns
| NNBR | US Machinery | US Market | |
|---|---|---|---|
| 7D | -4.8% | 0.4% | 0.9% |
| 1Y | -13.9% | 32.0% | 33.4% |
Return vs Industry: NNBR underperformed the US Machinery industry which returned 30.9% over the past year.
Return vs Market: NNBR underperformed the US Market which returned 33.4% over the past year.
Price Volatility
| NNBR volatility | |
|---|---|
| NNBR Beta | 3.21 |
| Industry Beta | 1.26 |
| Market Beta | 1 |
Stable Share Price: NNBR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NNBR's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1980 | 3,081 | Warren Veltman | https://www.nninc.com |
NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. It operates through Mobile Solutions and Power Solutions segments. The Mobile Solutions segment manufactures and sells system critical components for fuel systems, engines and transmissions, power steering systems, and electromechanical motors for general industrial and automotive end markets.
NN Fundamentals Summary
| NNBR fundamental statistics | |
|---|---|
| Market Cap | US$213.45m |
| Earnings (TTM) | -US$47.27m |
| Revenue (TTM) | US$482.75m |
0.4x
P/S Ratio-4.5x
P/E RatioIs NNBR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NNBR income statement (TTM) | |
|---|---|
| Revenue | US$482.75m |
| Cost of Revenue | US$383.54m |
| Gross Profit | US$99.21m |
| Expenses | US$146.48m |
| Earnings | -US$47.27m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 04, 2021
| Earnings per share (EPS) | -1.10 |
| Gross Margin | 20.55% |
| Net Profit Margin | -9.79% |
| Debt/Equity Ratio | 55.0% |
How did NNBR perform over the long term?
See historical performance and comparisonValuation
Is NN undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NNBR ($4.96) is trading below our estimate of fair value ($25.76)
Significantly Below Fair Value: NNBR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NNBR is unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.
PE vs Market: NNBR is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NNBR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NNBR is good value based on its PB Ratio (0.9x) compared to the US Machinery industry average (2.8x).
Future Growth
How is NN forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
105.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NNBR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: NNBR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NNBR's is expected to become profitable in the next 3 years.
Revenue vs Market: NNBR's revenue (4.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: NNBR's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NNBR's Return on Equity is forecast to be high in 3 years time
Past Performance
How has NN performed over the past 5 years?
-32.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NNBR is currently unprofitable.
Growing Profit Margin: NNBR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NNBR is unprofitable, and losses have increased over the past 5 years at a rate of 32% per year.
Accelerating Growth: Unable to compare NNBR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NNBR is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (17.3%).
Return on Equity
High ROE: NNBR has a negative Return on Equity (-8.54%), as it is currently unprofitable.
Financial Health
How is NN's financial position?
Financial Position Analysis
Short Term Liabilities: NNBR's short term assets ($214.7M) exceed its short term liabilities ($92.2M).
Long Term Liabilities: NNBR's short term assets ($214.7M) do not cover its long term liabilities ($238.5M).
Debt to Equity History and Analysis
Debt Level: NNBR's debt to equity ratio (55%) is considered high.
Reducing Debt: NNBR's debt to equity ratio has reduced from 260.2% to 55% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NNBR has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if NNBR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Dividend
What is NN current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NNBR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NNBR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NNBR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NNBR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: NNBR is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NNBR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Warren Veltman (60 yo)
2.08yrs
Tenure
US$3,275,852
Compensation
Mr. Warren A. Veltman has been President, Chief Executive Officer and Director at NN, Inc. since September 16, 2020. Mr. Veltman served as Interim President & CEO at NN, Inc. since September 16, 2019 until...
CEO Compensation Analysis
Compensation vs Market: Warren's total compensation ($USD3.28M) is above average for companies of similar size in the US market ($USD1.08M).
Compensation vs Earnings: Warren's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: NNBR's management team is seasoned and experienced (6.3 years average tenure).
Board Members
Experienced Board: NNBR's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NNBR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NN, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: NN, Inc.
- Ticker: NNBR
- Exchange: NasdaqGS
- Founded: 1980
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$213.446m
- Shares outstanding: 43.03m
- Website: https://www.nninc.com
Number of Employees
Location
- NN, Inc.
- 6210 Ardrey Kell Road
- Suite 600
- Charlotte
- North Carolina
- 28277
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 22:34 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.