Stock Analysis

How Much Did NN's(NASDAQ:NNBR) Shareholders Earn From Share Price Movements Over The Last Three Years?

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NasdaqGS:NNBR
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It's not possible to invest over long periods without making some bad investments. But you want to avoid the really big losses like the plague. So consider, for a moment, the misfortune of NN, Inc. (NASDAQ:NNBR) investors who have held the stock for three years as it declined a whopping 73%. That'd be enough to cause even the strongest minds some disquiet.

Check out our latest analysis for NN

NN wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, NN saw its revenue grow by 8.6% per year, compound. That's a pretty good rate of top-line growth. So it's hard to believe the share price decline of 20% per year is due to the revenue. It could be that the losses were much larger than expected. If you buy into companies that lose money then you always risk losing money yourself. Just don't lose the lesson.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
NasdaqGS:NNBR Earnings and Revenue Growth March 5th 2021

Take a more thorough look at NN's financial health with this free report on its balance sheet.

A Different Perspective

NN provided a TSR of 0.9% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 7% endured over half a decade. So this might be a sign the business has turned its fortunes around. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for NN you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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What are the risks and opportunities for NN?

NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies.

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Rewards

  • Trading at 79.9% below our estimate of its fair value

  • Earnings have grown 3.5% per year over the past 5 years

Risks

  • Does not have a meaningful market cap ($97M)

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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Share Price

Market Cap

1Y Return

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