MeritValue

NN INC

NNBRdata completeness 100%17 fiscal years on file
The thesis, from the filings

NN INC earns about -6% on invested capital, but has diluted owners by 12% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$477.6M1$498.7M2$489.3M3$464.3M3$422.2M3
Net income−$13.2M4−$26.1M5−$50.2M6−$38.3M6−$34M6
Operating cash flow$15.6M7$7.72M8$29.3M9$11.1M9$5.67M9
Capital expenditure$18.2M10$18M11$20.5M12$18.3M12$12.9M12
Free cash flow (derived)−$2.64M7−$10.2M8$8.85M9−$7.24M9−$7.25M9
Total debt$313.9M13$309.8M14$153.3M15$148.6M16$159.5M16
Cash & equivalents$28.7M17$12.8M18$21.9M19$18.1M20$11.4M20
Diluted shares44.0M44.7M46.7M48.7M49.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$6.88
your share of equity
Profit it earned you last year
−$6.88
Free cash flow it threw off
−$1.47
Debt you’d be carrying
$32.27

10 shares is a claim on $6.88 of net worth that earned you −$6.88 and generated −$1.47 of cash last year, against $32.27 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-6% avg · 5y
FY21 -3%FY22 -3%FY23 -10%FY24 -9%FY25 -8%

It earned an average -6% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 5y

Share count is up 12% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 49% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000918541-24-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000918541-25-000018 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000918541-26-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000918541-24-000020 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000918541-25-000018 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000918541-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000918541-24-000020 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000918541-25-000018 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000918541-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000918541-24-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000918541-25-000018 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000918541-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000918541-23-000023 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000918541-24-000020 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000918541-25-000018 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0000918541-26-000006 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000918541-23-000023 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000918541-24-000020 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000918541-25-000018 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000918541-26-000006 (CashAndCashEquivalentsAtCarryingValue)