NNBR

NNNasdaqGS:NNBR Stock Report

Market Cap

US$219.0m

7D

-2.5%

1Y

-2.1%

Updated

22 Sep, 2021

Data

Company Financials +
NNBR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

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

Trading at 77.9% below our estimate of its fair value

Earnings are forecast to grow 104.81% per year

Risk Analysis

No risks detected for NNBR from our risk checks.

NN Competitors

Timken

NYSE:TKR

US$5.1b

L.B. Foster

NasdaqGS:FSTR

US$165.1m

Jiangsu Hengli HydraulicLtd

SHSE:601100

CN¥110.3b

AB SKF

OM:SKF B

kr92.7b

Price History & Performance

Summary of all time highs, changes and price drops for NN
Historical stock prices
Current Share PriceUS$5.09
52 Week HighUS$4.91
52 Week LowUS$9.62
Beta3.28
1 Month Change-7.12%
3 Month Change-33.20%
1 Year Change-2.11%
3 Year Change-67.99%
5 Year Change-71.28%
Change since IPO-28.42%

Recent News & Updates

Sep 07

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.

Aug 13
NN (NASDAQ:NNBR) Has A Somewhat Strained Balance Sheet

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

NNBRUS MachineryUS Market
7D-2.5%-3.5%-1.7%
1Y-2.1%37.0%36.2%

Return vs Industry: NNBR underperformed the US Machinery industry which returned 32.7% over the past year.

Return vs Market: NNBR underperformed the US Market which returned 31.5% over the past year.

Price Volatility

Is NNBR's price volatile compared to industry and market?
NNBR volatility
NNBR Beta3.28
Industry Beta1.25
Market Beta1

Stable Share Price: NNBR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NNBR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19803,081Warren Veltmanhttps://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

How do NN's earnings and revenue compare to its market cap?
NNBR fundamental statistics
Market CapUS$219.04m
Earnings (TTM)-US$47.27m
Revenue (TTM)US$482.75m

0.5x

P/S Ratio

-4.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NNBR income statement (TTM)
RevenueUS$482.75m
Cost of RevenueUS$383.54m
Gross ProfitUS$99.21m
ExpensesUS$146.48m
Earnings-US$47.27m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.10
Gross Margin20.55%
Net Profit Margin-9.79%
Debt/Equity Ratio55.0%

How did NNBR perform over the long term?

See historical performance and comparison

Valuation

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 ($5.09) is trading below our estimate of fair value ($22.99)

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 (2.7x).


Future Growth

How is NN forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

104.8%

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 (5.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: NNBR's revenue (5.5% 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 (22.1%).


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?

6.2yrs

Average management tenure


CEO

Warren Veltman (60 yo)

2yrs

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 ($USD3.28M) is above average for companies of similar size in the US market ($USD1.09M).

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 (6.2 years average tenure).


Board Members

Experienced Board: NNBR's board of directors are not considered experienced ( 1.7 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$219.041m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:35
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.