NACCO Industries Inc. Common Stock (NC)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business: NACCO mines thermal coal under long-term utility contracts, provides contract mining, and holds mineral royalties. That can generate cash, but it is not a growth franchise; thermal coal faces secular headwinds. The numbers are lumpy. In fiscal 2025, the year ended 2025-12-31, revenue was $277.2M and net income $17.6M, or $2.35 per diluted share. In fiscal 2024, ended 2024-12-31, net income was $33.7M, or $4.55, so profit fell sharply. Fiscal Q1 2026, ended 2026-03-31, showed $8.8M net income and $1.17 EPS, but fiscal Q2 2026, ended 2026-06-30, swung to a $963,000 net loss and -$0.13 EPS. That reversal matters. At the 2026-10-13 close of $35.20, FairStock calculates a P/E of 15.37, P/B of 0.61, ROE of 4.07%, ROCE of -2.75%, and trailing free cash flow of -$4.3M. The P/B and a Graham Number of $54.57 suggest the price is below asset value, but negative cash flow and weak returns warn that book value may not be worth its stated amount. The balance sheet has D/E of 0.29 and beta of 0.45, yet Altman Z of 1.80 and Piotroski F-Score of 4/9 indicate fragility. This is a Lynch TURNAROUND—returned to profit after a loss—but the latest quarter shows the turnaround is not smooth. I want evidence of positive free cash flow, stable contract margins, and less reliance on coal. Until then, cheap-looking assets are not enough.

In plain English: NACCO Industries mines coal and provides contract mining and mineral royalties, mainly for power plants. The business looks uneven and currently weak: in the quarter ended June 30, 2026, it had revenue of $72.3 million but a net loss of $963,000, after earning $17.6 million in the year ended December 31, 2025. At $35.20 on October 13, 2026, the stock looks cheap based on its assets and a FairStock value estimate, but weak cash flow and falling profits mean the cheapness may not be enough.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer