Forensic Analysis · Coal Mining · as of Nov 11, 2026
Nacco Industries Inc (NC)
A forensic read on Nacco Industries Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
5.5
Distress distance
Clean
Earnings quality
3
Forensic signals
4.2%
ROE
16.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Nacco Industries Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 5.5, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3.8%
FY2025
Return on invested capital.Return on invested capital is 3.8% in the latest fiscal year, against -14.3% in FY2023, having run between -14.3% and 7.2% across FY2023–FY2025 with no direction held. After-tax operating profit was ($55M) in FY2023 and $20M in FY2025, with operating income at -32.7% of revenue in FY2023, 15.0% in FY2024 and 7.9% in FY2025. The capital base behind it grew +35% across FY2023–FY2025, from $389M to $525M, and the return did not fall doing it, so the dollars added over that window earned at least the -14.3% the older base was already earning. FY2023's operating profit carried a $66M asset write-down that alone took about 13.4 points off that year's return, so about 13.4 of the 18.1-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more. A non-cash write-down lowers the reported return in the year it lands.
+11.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +11.6% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by PP&E up +11% against revenue +17%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 7% of net operating assets, against an accruals ratio of 11.6%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
432% of FCF
FY2025
Shareholder returns.Returned $10M to shareholders (buybacks + dividends) in FY2025 — 432% of free cash flow, but 19% of operating cash flow. Returns run ahead of free cash flow, with the gap funded by debt or cash reserves rather than the cash the business itself throws off; the payout itself is still covered by operating cash. Counting the $8M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 795%.
Key fundamentals
Latest Revenue$277.2M
Revenue Growth YoY+16.6%
Revenue CAGR (2yr)+13.6%
Net Margin6.3%
Free Cash Flow$2.3M
Return on Equity4.2%
Debt / Equity0.26x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Nacco Industries Inc's actual 10-K/10-Q/8-K filings?