NACCO INDUSTRIES INC

NC
About the company

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Utility Coal Mining, Contract Mining, and Minerals and Royalties. The Utility Coal Mining operates surface coal mines under long-term contracts for power plants and a synfuels plant. This segment operates coal mines in North Dakota and Mississippi.

Country: United StatesPrice: $37.78Market Cap: $285.1M

Investment snapshot

31%positive consensus
Scored 37d ago

Positive

5

BUY / PASS

Neutral / negative

2 / 8

NEUTRAL / FAIL

Median fair value

$14.55

-61.5% vs price

Models with upside

4 / 16

Positive margin of safety

Strongest signal

9 of 11 pass — Lynch and Buffett object

Key risk

10 of 12 flag NC's valuation — Oshaughnessy, Lynch, Pabrai +7 more

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Munger

Quality Focus

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Graham

Defensive Value

VerdictFAILFAILFAILFAILFAILBUYFAILFAILBUYBUYNEUTRALPASSFAILNEUTRALFAIL · Rank #1296 (Top 40.4%)PASS
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/AN/A
Margin of SafetyN/A-606.2%-94.5%-290.3%+67.1%N/AN/AN/A+31.4%+36.8%-516.3%-376.4%-369.3%N/AN/A+31.4%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Debt & Leverage82% pass✓ 12✗ 2▾

    9 of 11 pass — Lynch and Buffett object

    Total Debt / Equity0.20
    ✓Lynch< 0.33
    Cash - Long-term Debt$-51.1M
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 0.20, IC: 3.1x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels0.20
    ✓AkreDebt/Equity < 0.3✓MungerDebt/Equity < 0.5
    Total Debt / Shareholders' Equity0.20x
    ✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓Dreman< 0.8
    Current Assets / Current Liabilities3.09x
    ✓SchlossCurrent ratio >= 1.50x (app cutoff)✓Dreman> 1.5
    Interest Coverage & Debt/EBITDAIC=3.1x, D/EBITDA=1.8x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.20
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change15.74% -> 15.25%
    ✓PiotroskiDecreased YoY
    LT Debt vs Net Current AssetsLT Debt $100.8M vs NCA $145.3M
    ✓GrahamLT Debt <= Net Current Assets
  • Cash Flow60% pass✓ 7✗ 5▾

    6 of 10 pass — Oshaughnessy, Buffett, Pabrai +1 more object

    (Operating cash flow - capex) / market capitalization+0.80%; #2408/4487 (top 53.7%)
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing$2.3M
    ✓LynchPositive and growing
    Free Cash Flow Proxy$17.6M
    ✗BuffettPositive and growing
    P/E or FCF YieldP/E=16.1x, FCF Yield=0.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures$2.3M
    ✓Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency24/25 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive13/17 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap0.8%
    ✗Ackman>= 4%
    Price / FCF per Share123.7x
    ✗Ackman<= 25
    Price / (CFO / Shares)5.6x
    ✓Dreman< 8x
    Operating Cash Flow$50.9M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=7.70%, ROA=2.66%
    ✓PiotroskiCFO/Assets > ROA

Where It Falls Short

  • Valuation17% pass✓ 10✗ 16▾

    10 of 12 flag NC's valuation — Oshaughnessy, Lynch, Pabrai +7 more

    Revenue / market capitalization+0.9722; #1667/5203 (top 32.0%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+6.16%; #1272/6251 (top 20.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+0.80%; #2408/4487 (top 53.7%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-27.30%; #4914/6203 (top 79.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)7.07
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=16.1x, FCF Yield=0.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share0.66x
    ✓SchlossP/B <= 0.80x (app cutoff)✓Templeton< 1.5x✓Dreman< 1.2x
    Price / Tangible Book Value per Share0.67x
    ✓SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+34.7%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS16.1x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E0.30
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS16.1x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low119% of trailing low ($31.63)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    P/B or P/E vs. Historical AverageP/E=16.1x, P/B=0.7x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-369.3% (IV=$8.05 vs Price=$37.78)
    ✗Marks>= 20% below intrinsic value
    Valuation ReasonablenessP/E=16.1x, OE Yield=-2.0%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share123.7x
    ✗Ackman<= 25
    Price / (CFO / Shares)5.6x
    ✓Dreman< 8x
    EBIT / Enterprise Value6.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=6.9%, ROC=5.7%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / 3-yr avg EPS70.4x
    ✗Graham<= 15x
    Price-to-Book Ratio0.7x
    ✓Graham<= 1.5x
    P/E x P/B46.40
    ✗Graham<= 22.5
  • Profitability20% pass✓ 10✗ 21▾

    12 of 15 flag NC's profitability — Oshaughnessy, Lynch, Buffett +9 more

    Net income / market capitalization+6.16%; #1272/6251 (top 20.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)7.07
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR2.3%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE4.1%
    ✗Lynch> 15%
    Net Income Positive (10+ years)25/27 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)6.6%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)7.9% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$17.6M
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)0.87
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=16.1x, P/B=0.7x
    ✓PabraiP/B < 1.5 or P/E < 15
    Return on Equity0.7% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years9/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR2.3% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 6.8% -> 13.9%, operating margin -32.7% -> 7.9%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR2.3% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend-32.7% (2023) -> 7.9% (2025)
    ✓TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value-369.3% (IV=$8.05 vs Price=$37.78)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency25/27 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue7.9%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity4.1%
    ✗Ackman>= 15%
    Pre-Tax Income / Revenue4.7%
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity4.1%
    ✗Dreman> 12%
    Net Income / Total Assets2.66%
    ✓PiotroskiROA > 0
    ROA Change YoY5.34% -> 2.66% (delta: -2.68%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=7.70%, ROA=2.66%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY12.5% -> 13.9%
    ✓PiotroskiImproved YoY
    EBIT / Enterprise Value6.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=6.9%, ROC=5.7%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Positive EPS (10 years)21/27 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Efficiency25% pass✓ 3✗ 8▾

    6 of 8 flag NC's efficiency — Buffett, Akre, Sleep +3 more

    ROIC (3-5 yr avg)5.1%
    ✗Buffett> 10%
    ROIC - WACC-4.9%
    ✗BuffettPositive (WACC = 10%)
    ROIC (high and growing)FY2023: ROIC=-13.6%; FY2024: ROIC=5.9%; FY2025: ROIC=3.4%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC2.0% (RR=58% x ROIC=3.4%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)1/5 years above 12% (latest 3.4%)
    ✗SleepROIC > 12% in a majority of years
    Return on Invested Capital3.4%
    ✗Munger> 15%
    Current Assets / Current Liabilities3.09
    ✓Dreman> 1.5
    Current Ratio Change YoY4.08 -> 3.09
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.38x -> 0.42x
    ✓PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)5.7%
    ✗Greenblatt> 25%
    Current Ratio3.09
    ✓Graham>= 2.0
  • Verdicts36% pass✓ 5✗ 9▾

    Split decision: 8 FAIL · 3 BUY · 2 NEUTRAL · 2 PASS

    Overall verdict
    ✗OshaughnessyFAIL (Rank #753/953 (Top 79.0%))✗LynchFAIL (4/7)✗BuffettFAIL (1/9)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✓SchlossBUY (7/7)✗NeffFAIL (3/6)✗SleepFAIL (2/6)✓TempletonBUY (7/8)✓MarksBUY (4/5)•MungerNEUTRAL (3/4)✓AckmanPASS (4/9)✗DremanFAIL (4/11)•PiotroskiNEUTRAL (F-Score 6)✗GreenblattRank #1296✓GrahamPASS (5/9)
  • Growth38% pass✓ 7✗ 6▾

    5 of 8 flag NC's growth — Lynch, Neff, Sleep +2 more

    Basic earnings-growth PEG (dividends excluded)7.07
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR2.3%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: -32.7% vs Rev: 16.6%
    ✓LynchInventory growth < Revenue growth
    3-5 Year Diluted EPS CAGR2.3% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 6.8% -> 13.9%, operating margin -32.7% -> 7.9%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR16.6%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR2.3% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency25/27 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth10.7%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction$5.17 (2002) -> $2.35 (2025)
    ✗DremanPositive over recent years
    EPS CAGR-3.4% CAGR over 23 years
    ✗Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Valuation models40% pass✓ 4✗ 6▾

    Models split on NC at $37.78 — fair values range $5.35–$114.86

    Lynch fair value$5.35
    ✗Lynch-606.2% margin vs $37.78
    Buffett fair value$19.42
    ✗Buffett-94.5% margin vs $37.78
    Pabrai fair value$9.68
    ✗Pabrai-290.3% margin vs $37.78
    Akre fair value$114.86
    ✓Akre+67.1% margin vs $37.78
    Templeton fair value$55.08
    ✓Templeton+31.4% margin vs $37.78
    Marks fair value$59.78
    ✓Marks+36.8% margin vs $37.78
    Munger fair value$6.13
    ✗Munger-516.3% margin vs $37.78
    Ackman fair value$7.93
    ✗Ackman-376.4% margin vs $37.78
    Dreman fair value$8.05
    ✗Dreman-369.3% margin vs $37.78
    Graham fair value$55.08
    ✓Graham+31.4% margin vs $37.78

Business & financials

Company Profile

Industry: Coal
SIC Sector: Coal Mining
Size: Micro Cap($285.1M)
Revenue: $277.2M+16.6% YoY
Net Income: $17.6M-47.9% YoY

Financial Snapshot

Operating Margin7.9%
Return on Equity4.1%
Debt / Equity0.20
Current Ratio3.09
EPS (Diluted)$2.35−48.4% 1y
Buybacks (1y)$2.5M
Buybacks (2y)$12.5M
Shares Retired−0.9% / −0.0% 2y

Similar Companies

HCCWARRIOR MET COAL, INC.
$4.8B
CNRCore Natural Resources, Inc.
$4.4B
ARLPALLIANCE RESOURCE PARTNERS LP
$3.1B
BTUPEABODY ENERGY CORP
$3.0B

Shareholder Return

Fiscal 2025

Issued 0.9% of shares last year, 0.0% issued over two.

Buybacks
$2.5M
Dividends
$7.3M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
50.4% = 54.1% + −2.4%
FY25
−48.4% = −47.9% + −0.8%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$285.1M$227.4Mest.$255.7Mest.$264.1Mest.$197.8Mest.
Revenue$277.2M↑17%$237.7M↑11%$214.8M↓11%$241.7M↑26%$191.8M
Operating Income$22.0M↓38%$35.7M↑151%-$70.1M↓200%$70.0M↑26%$55.4M
Net Income$17.6M↓48%$33.7M↑185%-$39.6M↓153%$74.2M↑54%$48.1M
EPS (Diluted)$2.35↓48%$4.55↑186%$-5.29↓153%$10.06↑50%$6.69
Gross Margin13.9%↑11%12.5%↑84%6.8%↓76%28.1%↑24%22.6%
Operating Margin7.9%↓47%15.0%↑146%-32.7%↓213%29.0%28.9%
ROE4.1%↓51%8.3%↑180%-10.4%↓160%17.4%↑27%13.7%
Total Debt$84.1M↑13%$74.2M↑186%$26.0M↑32%$19.7M↓5%$20.7M
Shareholders' Equity$429.2M↑6%$404.9M↑6%$382.3M↓10%$427.0M↑21%$352.1M
Current Ratio3.09↓24%4.08↑23%3.31↓44%5.88↑33%4.41
Debt / Equity0.20↑7%0.18↑170%0.07↑47%0.05↓22%0.06
Operating Cash Flow$50.9M↑128%$22.3M↓59%$54.5M↓20%$67.7M↓10%$74.9M
Free Cash Flow$2.3M↑107%-$32.4M↓457%$9.1M↓64%$25.2M↓29%$35.6M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Coal

NC vs Peers — Financial Grading

Revenue$277.2MBottom 25%
Net Income$17.6MMedian
ROE4.1%Median
D/E0.20Bottom 25%
Op. Margin7.9%Median
Curr. Ratio3.09Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
WARRIOR MET COAL, INC.HCC$4.8B$91.75$1.3B$57.0M2.7%0.073.5%3.193/94/93/70/3F-Score 43/11
Core Natural Resources, Inc.CNR$4.4B$86.50$4.2B$153.2M-4.2%0.11-4.4%1.603/93/92/70/3F-Score 34/11
ALLIANCE RESOURCE PARTNERS LPARLP$3.1B$24.38$2.2B$311.2M16.9%0.2417.6%2.104/96/95/71/3F-Score 48/11
PEABODY ENERGY CORPBTU$3.0B$24.37$3.9B$42.5M-1.2%0.10-2.1%1.853/93/91/70/3F-Score 44/11
Alpha Metallurgical Resources, Inc.AMR$2.1B$166.00$2.1B$61.7M-4.0%0.01-2.9%4.476/94/92/70/3F-Score 43/11
NATURAL RESOURCE PARTNERS LPNRP$1.5B$109.71$207.3M$136.4M21.6%0.0569.6%1.854/94/96/70/3F-Score 57/11
Ramaco Resources, Inc.METC$372.5M$8.38$536.6M$51.4M-10.6%0.02-10.4%5.463/92/92/70/3F-Score 32/11
American Resources CorpAREC$195.8M$1.83$0.00$55.4M58.4%0.01—2.192/90/93/70/3F-Score 34/11