NN Inc Stock Analysis, Valuation (NASDAQ:NNBR)

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$22.65 $0.05 (0.22%) NNBR stock closing price May 18, 2018 (Closing)
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NN Inc
Updated on : May 18, 2018
previous close
NNBR 22.7 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Metal Processing Fabrication
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
14.2%
Operating Profit
Operating Margin:
2.1%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
806.2M
Debt/Equity Ratio:
 1.66
Compared to the industry
Cash Flow
Operating cash flow:
-$1M
Net Income:
-$6M
Dividend Yield
NNBR dividend yield:
1.24%
PROS      CONS
Long Term Growth
PE Valuation
PS Valuation
Recent Growth
Operating Margins
High Debt Burden
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NNBR PS :
0.9
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-0.1%
Return on Equity:
5.7%
Free Cash Flow Margin:
-7.6%
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NN Inc Stock Analysis

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Take a look at Amigobulls NN Inc stock analysis video. This is our analyst opinion covering the buy and sell arguments for NNBR stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NN, Inc. Stock Rating 2.2/5

Amigobulls NNBR stock analysis takes into account various financial ratios like relative valuation, NN Inc revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check NN Inc dividend performance. NN Inc valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our NN Inc stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy NNBR stock?

  • Revenue growth has been tremendous with a compounded annual growth of 14.2% over the last 5 years.
  • The price to earnings multiple of 16 is attractive when compared with the industry average PE ratio of 20.9.
  • NNBR stock is trading at a favorable price to sales multiple of 0.9 as against the Metal Processing Fabrication industry average multiple of 1.5.

Should you sell NNBR stock?

  • NN Inc revenue saw a decline of -25.3% YoY in 2018 Q1.
  • NN Inc had a poor average operating margin of 2.1% over the last 4 quarters.
  • With a debt/equity ratio of  1.66, NN Inc is highly leveraged in comparison to Industrial Products peers.
  • The company has a negative Return on Invested Capital of -0.1%, which is a red flag.
  • The TTM ROE (Return On Equity) for NN Inc is not so attractive at 5.7%.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -7.6%.

Comments on this video and NN Inc stock

Investors can use Amigobulls NN Inc stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

NN Inc revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about NNBR stock.