NN (NNBR) AI Stock Analysis

• Market Cap: $134.20M
• Dividend Yield: N/A
• Average Volume (3M): 211.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: -5.11%
• EPS Growth: 17.87%
• Country: US
• Employees: 3,160
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial Conglomerates
• EPS (TTM): -1.11
• Shares Outstanding: 49,886,864
• 10 Day Avg. Volume: 191,581
• 30 Day Avg. Volume: 211,775
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.29
• Price to Cash Flow (P/CF): 5.10
• P/FCF Ratio: 3.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.67
• Price Target Upside: 147.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

NN Inc. is facing significant financial and operational challenges, reflected in its declining revenues and ongoing profitability issues. While the company's strategic transformation and operational improvements are promising, the stock's bearish technical indicators and negative valuation metrics highlight underlying risks. The positive earnings call sentiment and guidance provide some optimism for future recovery, but immediate concerns remain significant.

NN Business Overview & Revenue Model

Company Description

NN, Inc. (NNBR) is a diversified industrial company that specializes in high-precision metal and plastic components and assemblies for a variety of sectors, including automotive, aerospace, medical, and industrial markets. The company operates through several segments, providing engineered solutions and a wide range of products to meet the specific needs of its customers. NN's core offerings include precision bearings, engineered plastic and rubber products, and high-precision metal components that are integral to the functionality and performance of complex machinery and systems.

How the Company Makes Money

NN, Inc. generates revenue primarily through the sale of its precision-engineered components and assemblies to original equipment manufacturers (OEMs) and other industrial clients in its target markets. The company's key revenue streams include direct product sales, long-term supply agreements, and value-added services such as design and engineering support. NN leverages its technological expertise, manufacturing capabilities, and customer relationships to secure contracts and maintain a steady flow of business. Additionally, strategic partnerships and collaborations with customers and suppliers play a significant role in enhancing product offerings and expanding market reach, contributing to the company's earnings.

NN Financial Statement Overview

Summary

NN faces significant financial challenges. Revenues have been declining, and the company is experiencing persistent losses. Although the debt-to-equity ratio has improved, equity reduction and negative returns are concerning. Cash flow shows some operational improvement, but liquidity and financing remain pressured.

Income Statement

NN has experienced declining revenues over the past few years, with a noticeable drop from $847M in 2019 to $464M in 2024. The company also reports persistent negative net income, indicating profitability challenges. Negative EBIT margins further highlight operational inefficiencies. However, the gross profit margin was strong in 2024, showing resilience in cost management, albeit with the entire revenue recognized as gross profit, possibly due to data anomalies.

Balance Sheet

The debt-to-equity ratio has improved significantly from 3.35 in 2019 to 0.72 in 2024, signaling reduced leverage risk, but remains substantial. Stockholders' equity has decreased over time, impacting the equity ratio and showing a decline in asset financing through equity. Return on equity remains negative, reflecting ongoing losses and a potential risk for investors.

Cash Flow

Operating cash flow has shown some positive movement in 2024, but free cash flow remains modest, indicating limited cash available after capital expenditures. The 2024 operating cash flow to net income ratio is positive, suggesting efficient cash conversion despite net losses. However, cash flow from financing and investing activities shows a pattern of outflows, indicating pressure on liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
464.29M	489.27M	498.74M	477.58M	427.53M
	Gross Profit
69.48M	70.09M	77.63M	87.59M	83.94M
	EBIT
-27.55M	-21.80M	-16.03M	-5.02M	-24.30M
	EBITDA
21.96M	15.40M	31.63M	36.34M	-96.42M
	Net Income Common Stockholders
-43.02M	-50.15M	-32.69M	-20.69M	-143.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.13M	21.90M	12.81M	28.66M	48.14M
	Total Assets
456.89M	510.88M	546.13M	579.10M	624.96M
	Total Debt
53.37M	212.83M	209.41M	211.13M	143.76M
	Net Debt
35.24M	190.93M	196.61M	182.47M	95.62M
	Total Liabilities
382.37M	308.08M	295.16M	354.92M	370.81M
	Stockholders Equity
74.52M	202.80M	250.97M	224.19M	254.15M
Cash Flow		Free Cash Flow
11.07M	8.85M	-10.23M	-2.63M	-8.22M
	Operating Cash Flow
11.07M	29.34M	7.72M	15.59M	15.55M
	Investing Cash Flow
-1.01M	-17.60M	-17.49M	-36.10M	719.28M
	Financing Cash Flow
-13.24M	-2.88M	-5.19M	2.56M	-714.85M

NN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNBR, the sentiment is Negative. The current price of 2.69 is below the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.01, and below the 200-day MA of 3.46, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNBR.

NN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	82 Outperform	$463.24M	3.02	11.18%	9.55%	-11.02%	-51.66%
LEA	70 Outperform	$5.33B	11.02	10.81%	3.12%	-0.70%	-7.27%
DAN	64 Neutral	$1.96B	―	-3.92%	2.86%	-2.57%	-248.28%
AXL	62 Neutral	$539.70M	15.96	5.79%	―	0.75%	―
BWA	62 Neutral	$6.53B	19.83	6.46%	1.47%	-11.10%	-46.32%
Sector *	62 Neutral	$8.27B	12.81	0.55%	3.01%	3.90%	-15.60%
NNBR	45 Neutral	$134.20M	―	-20.64%	―	-5.11%	17.87%

NN Corporate Events

NN, Inc. Accelerates Transformation Plans in 2025

On March 5, 2025, NN, Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a decrease in net sales by 5.1% compared to 2023, primarily due to the sale of its Lubbock operations and unfavorable foreign exchange effects. Despite these challenges, the company achieved $73 million in new business wins in 2024, surpassing its previous record, and is on track with its 5-year sales growth and diversification goals. The company is accelerating its transformation plans in 2025, focusing on launching new products, improving underperforming plants, and expanding its US electrical grid power business. The company also reported significant improvements in adjusted EBITDA and free cash flow, indicating progress in its transformation efforts.

NN, Inc. Highlights Transformation at Sidoti Conference

NN, Inc. announced its participation in the Sidoti Micro Cap Conference on January 22, 2025, where it will showcase its ongoing enterprise transformation and strategic growth initiatives. The company has achieved significant business wins, focusing on expanding its footprint in the medical and electrical markets, and aims to enhance its operational efficiency through precision automation. With a new leadership team, NN, Inc. is executing a three-phase transformation plan to improve profitability and cash flow, supported by strategic refinancing to optimize its capital structure and competitiveness.

NN, Inc. Announces New Credit Facility and Strategic Moves

NN, Inc. has announced a new $50 million asset-backed revolving credit facility, which marks a significant step in its balance sheet optimization strategy. This new credit agreement will aid in refinancing existing obligations and is expected to enhance the company’s financial flexibility, reflecting market confidence in NN, Inc.’s strategic transformation and growth initiatives.

NN Embarks on Strategic Enterprise Transformation

NN, Inc. has embarked on an enterprise transformation to enhance growth and profitability through strategic investments in medical and electrical markets, and by expanding its footprint in low-cost geographies, including China. The company is focused on refining its product portfolio, optimizing costs, and improving operating efficiency, with a goal of securing $65 million in business wins annually over the next five years. This transformation is supported by a new leadership team experienced in cost structure transformation and market expansion, aiming to reposition NN for increased competitiveness and consistent free cash flow.