NN, Inc. (NNBR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

NN, Inc. (NNBR) Industrial Operations Profile

NN, Inc., operating within the Industrials sector, specializes in high-precision components and assemblies for automotive, aerospace, and medical industries. With a focus on Mobile Solutions and Power Solutions, the company navigates a competitive landscape while serving diverse end markets, holding a market cap of $315M.

What Is the Investment Thesis for NNBR?

NN, Inc. presents a complex investment case. With a market capitalization of $315M, the company operates in the competitive industrial components sector. A key value driver is the company's ability to serve diverse end markets, reducing reliance on any single industry. However, a negative profit margin of -7.9% and a low gross margin of 4.6% raise concerns about profitability. Future growth hinges on successful execution of strategic initiatives within the Mobile Solutions and Power Solutions segments. Investors should closely monitor the company's ability to improve margins and capitalize on growth opportunities in its target markets. The company's beta of 2.22 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

NNBR Key Highlights

Market capitalization of $315M reflects its current valuation in the industrial components market.

• Operates through two segments: Mobile Solutions and Power Solutions, serving diverse end markets.
• Negative profit margin of -7.9% indicates challenges in achieving profitability.
• Gross margin of 4.6% suggests potential areas for improvement in cost management and pricing strategies.
• Beta of 2.22 indicates higher volatility compared to the overall market.

Who Are NNBR's Competitors?

NNBR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NNBR's Key Strengths?

Diversified product portfolio.

• Presence in multiple end markets.
• Expertise in precision manufacturing.
• Established relationships with key customers.

What Are NNBR's Weaknesses?

Negative profit margin.

• Low gross margin.
• High debt levels.
• Dependence on macroeconomic conditions.

What Could Drive NNBR Stock Higher?

Execution of strategic initiatives to improve profitability and cash flow.

• Expansion in high-growth markets such as electric vehicles and medical devices.
• Potential acquisitions to expand product offerings and market reach.
• Cost reduction initiatives to improve operational efficiency.

What Are the Key Risks for NNBR?

Financial-distress signal — its Altman Z-Score of 0.59 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-22.4%) — the business is not currently generating profit on shareholder capital.
• Economic downturns impacting demand for industrial components.
• Intense competition from established players and new entrants.
• Fluctuations in raw material prices affecting profitability.
• Integration risks associated with potential acquisitions.
• High debt levels limiting financial flexibility.

What Are the Growth Opportunities for NNBR?

• Expansion in the Electric Vehicle (EV) Market: NN, Inc. can leverage its Mobile Solutions segment to capitalize on the growing demand for EV components. As the EV market expands, the need for precision-engineered parts for power steering, braking, and transmission systems will increase. By investing in research and development and forming strategic partnerships with EV manufacturers, NN, Inc. can secure a significant share of this market.
• Penetration of the Aerospace and Defense Sector: The Power Solutions segment can focus on expanding its presence in the aerospace and defense sector. With increasing demand for advanced components and assemblies in aircraft and military equipment, NN, Inc. can leverage its expertise in precision manufacturing to secure new contracts. By obtaining relevant certifications and building strong relationships with key players in the industry, the company can establish itself as a reliable supplier. The global aerospace and defense market is expected to grow steadily over the next decade, offering significant potential for NN, Inc.
• Growth in the Medical Device Market: NN, Inc. can further penetrate the medical device market by offering specialized tools and instruments for orthopedic and medical/surgical procedures. The aging population and increasing demand for minimally invasive surgeries are driving growth in this market. By investing in product innovation and collaborating with medical device manufacturers, NN, Inc. can expand its product portfolio and increase its market share.
• Strategic Acquisitions: NN, Inc. can pursue strategic acquisitions to expand its product offerings, geographic reach, and customer base. By acquiring companies with complementary technologies and market positions, NN, Inc. can strengthen its competitive advantage and accelerate its growth. Potential acquisition targets could include companies specializing in advanced materials, precision machining, or specialized components for specific industries. Successful integration of acquired businesses is crucial for realizing the full benefits of these acquisitions.
• Focus on Operational Efficiency: NN, Inc. can improve its profitability by focusing on operational efficiency and cost reduction. By implementing lean manufacturing principles, optimizing its supply chain, and investing in automation, the company can reduce its operating expenses and improve its gross margin. This will enhance its competitiveness and allow it to invest in growth initiatives. Continuous improvement in operational efficiency is essential for long-term success in the competitive industrial components market.

What Are NNBR's Competitive Advantages?

• Specialized expertise in precision manufacturing.
• Long-standing relationships with key customers.
• Diverse product portfolio serving multiple end markets.
• Proprietary technologies and manufacturing processes.

What Does NNBR Do?

Founded in 1980 and headquartered in Charlotte, North Carolina, NN, Inc. has evolved into a diversified industrial company focused on designing, manufacturing, and selling high-precision components and assemblies. The company operates through two primary segments: Mobile Solutions and Power Solutions. The Mobile Solutions segment caters to the automotive and general industrial markets, providing system-critical components used in power steering, braking, transmissions, fuel systems, and HVAC applications. The Power Solutions segment serves a broader range of industries, including electrical, general industrial, automotive, aerospace, defense, and medical. This segment produces metal and plastic components, assemblies, and finished devices used in power control, flight control, and military applications, as well as tools and instruments for orthopedics and medical/surgical procedures. NN, Inc. aims to deliver precision-engineered solutions to its diverse customer base.

What Products and Services Does NNBR Offer?

• Designs and manufactures high-precision metal and plastic components.
• Produces assemblies and finished devices for various industries.
• Offers system-critical components for automotive applications.
• Provides electrical contacts, connectors, and contact assemblies.
• Manufactures precision stampings for diverse end markets.
• Creates tools and instruments for the orthopedics and medical/surgical markets.

How Does NNBR Make Money?

• Designs and manufactures precision components and assemblies.
• Sells products to original equipment manufacturers (OEMs) and other industrial customers.
• Generates revenue through long-term contracts and spot sales.
• Focuses on providing customized solutions to meet specific customer needs.

What Industry Does NNBR Operate In?

NN, Inc. operates within the industrial conglomerates sector, which is characterized by companies with diverse product portfolios and end markets. The sector is influenced by macroeconomic factors, technological advancements, and regulatory changes. Competition is intense, with companies vying for market share based on product quality, innovation, and customer service. NN, Inc.'s focus on high-precision components and assemblies positions it to capitalize on the increasing demand for specialized solutions in industries such as automotive, aerospace, and medical. The company's ability to adapt to changing market dynamics and differentiate itself from competitors will be crucial for long-term success.

Who Are NNBR's Key Customers?

• Automotive manufacturers requiring precision components for various systems.
• Aerospace and defense companies needing specialized parts for aircraft and military equipment.
• Medical device manufacturers seeking tools and instruments for surgical procedures.
• General industrial companies using precision components in their products.

Wall Street analysts project NN, Inc. revenue of about $464.9M for fiscal 2026, with EPS near $0.05. The estimate reflects 3 contributing analysts.

NN, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.59 places it in the distress zone, a signal of elevated financial risk.

Return on equity for NN, Inc. stands at -22.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -7.5%, showing how much profit it generates from its asset base. Its free cash flow yield is -4.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.87 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -18.2%, the inverse of the P/E and a quick read on earnings relative to price.

NN, Inc. (NNBR) Valuation Context

Valued at $315M, NNBR is classified as a small-cap stock. Relative to its peer group, NNBR's quantitative score of 26/100 is below the peer average of 57/100.

Company Profile

NN, Inc. operates in the Conglomerates industry within the Industrials sector. It is headquartered in Charlotte, US. The company is led by CEO Harold C. Bevis. NNBR has traded publicly since 1994.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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