NACCO Industries, Inc. — Earnings Quality Grade F
NC · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 66 days, change -20 days YoY
AR growth -10.2% vs revenue growth 16.6%
Revenue 16.6%, CFFO 128.4%. Cash follows revenue
Expense Quality
Inventory -32.7% vs COGS 14.8%. Normal
CapEx growth -11.1% vs revenue 16.6%. Normal
SG&A/Gross Profit = 202.4%, exceeds 70%
Gross margin 13.9%, change +1.4pp. Stable
Cash Flow Quality
CFFO/NI = 2.90. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -5.0%. Low accruals
Cash $0.0B covers only 46% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 1% of equity. Manageable
Interest coverage = -7.1x (<2x). Financial stress
Other assets grew 149.5% vs revenue 16.6%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -14% YoY. Normal
Manipulation Score
M-Score = -2.63 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25