NYSE:NC

Stock Analysis Report

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Executive Summary

NACCO Industries, Inc., together with its subsidiaries, operates surface coal mines contracts to power generation companies and activated carbon producers. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has NACCO Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

12.1%

NC

8.6%

US Oil and Gas

2.1%

US Market


1 Year Return

-43.2%

NC

-31.2%

US Oil and Gas

19.8%

US Market

Return vs Industry: NC underperformed the US Oil and Gas industry which returned -31.1% over the past year.

Return vs Market: NC underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

NCIndustryMarket
7 Day12.1%8.6%2.1%
30 Day37.2%29.6%8.1%
90 Day26.4%8.3%6.0%
1 Year-42.0%-43.2%-26.5%-31.2%22.5%19.8%
3 Year-35.1%-38.5%-32.8%-42.0%46.5%36.8%
5 Year14.3%-35.4%-21.8%-37.3%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is NACCO Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NACCO Industries undervalued compared to its fair value and its price relative to the market?

7.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NC ($26.94) is trading above our estimate of fair value ($7.94)

Significantly Below Fair Value: NC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NC is good value based on its PE Ratio (7.1x) compared to the US Oil and Gas industry average (9.3x).

PE vs Market: NC is good value based on its PE Ratio (7.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NC is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is NACCO Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

57.6%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NACCO Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NACCO Industries performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NC has a high level of non-cash earnings.

Growing Profit Margin: NC's current net profit margins (20.1%) are lower than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: NC has become profitable over the past 5 years, growing earnings by 27.3% per year.

Accelerating Growth: NC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NC had negative earnings growth (-39.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (-29.6%).


Return on Equity

High ROE: NC's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is NACCO Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NC's short term assets ($198.6M) exceed its short term liabilities ($36.6M).

Long Term Liabilities: NC's short term assets ($198.6M) exceed its long term liabilities ($122.8M).


Debt to Equity History and Analysis

Debt Level: NC's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: NC's debt to equity ratio has reduced from 94% to 7.5% over the past 5 years.

Debt Coverage: NC's debt is well covered by operating cash flow (36%).

Interest Coverage: Insufficient data to determine if NC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is NACCO Industries's current dividend yield, its reliability and sustainability?

2.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NC's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NC's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: NC's dividend payments have been volatile in the past 10 years.

Growing Dividend: NC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.1%), NC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

John Butler (59 yo)

3.17yrs

Tenure

US$3,659,045

Compensation

Mr. John C. Butler, Jr., has been the Chief Executive Officer and President of The North American Coal Corporation since July 1, 2015. Mr. Butler has been the President and Chief Executive Officer of NACCO...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.66M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Butler
President3.17yrsUS$3.66m3.31%
$ 6.3m
John Neumann
VP, General Counsel & Secretary8.17yrsUS$903.24k0.11%
$ 211.8k
Elizabeth Loveman
VP, Controller & Principal Financial Officer6.42yrsUS$544.77k0.14%
$ 268.2k
Robert Strenski
President of KC5.83yrsno datano data
Thomas Maxwell
VP of Financial Planning & Analysis and Treasurer3.17yrsno data0.050%
$ 95.2k
Berry Nathan
President of North American Mining8.83yrsno data0.060%
$ 114.8k
Eric Anderson
President of Mitigation Resources of North Americano datano datano data
Gregory Salyers
Senior Vice President of Global Operations of HBBno dataUS$802.68kno data
Christina Kmetko
Investor Relations Consultantno datano datano data
Harry Tipton
Vice President of Engineering at The North American Coal Corporationno dataUS$759.44kno data

6.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NC's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Butler
President3.17yrsUS$3.66m3.31%
$ 6.3m
Alfred Rankin
Non-Executive Chairman26.5yrsUS$2.30m6.21%
$ 11.8m
Robert Shapard
Director0.17yrno data0.0039%
$ 7.4k
Dennis LaBarre
Independent Director38.83yrsUS$200.18k0.38%
$ 713.3k
Britton Taplin
Independent Director28.83yrsUS$172.18k0.77%
$ 1.5m
Richard de Osborne
Independent Director22.83yrsUS$206.50k0.34%
$ 653.1k
Michael Miller
Independent Director4.25yrsUS$196.88k0.14%
$ 265.3k
John Jumper
Independent Director8.83yrsUS$196.88k0.22%
$ 425.0k
Matthew Rankin
Independent Director3.17yrsUS$168.88k0.29%
$ 557.3k
John Dalrymple
Independent Director3.17yrsUS$173.88k0.11%
$ 210.9k
Roger Rankin
Director0.75yrno data2.87%
$ 5.5m
Lori Robinson
Independent Director1.17yrsUS$43.75k0.045%
$ 86.1k

3.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NC's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NC insiders have only sold shares 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

NACCO Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NACCO Industries, Inc.
  • Ticker: NC
  • Exchange: NYSE
  • Founded: 1913
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$189.808m
  • Shares outstanding: 7.05m
  • Website: https://www.nacco.com

Number of Employees


Location

  • NACCO Industries, Inc.
  • 5875 Landerbrook Drive
  • Suite 220
  • Cleveland
  • Ohio
  • 44124-4069
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1968

Biography

NACCO Industries, Inc., together with its subsidiaries, operates surface coal mines contracts to power generation companies and activated carbon producers. The company operates through three segments: Coal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:00
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.