NN Inc. (NASDAQ:NNBR) is a three segment industrial supplier. Its operations are broken down into (1) a metal bearings segment accounting for 68% of sales, (2) a plastics and rubber segment accounting for 11% of sales, and (3) a precision metals segment accounting for 21% of sales.
The products supplied by NN Inc. seem at first glance to be commoditized. Take a look at their products below:
However, a read through the 10-K suggests that NN Inc. has a strong position in its value network and rising costs of raw materials are easily passed through to the customer. This strong position can be seen when we look at profitability: while the company is cyclical and posted a loss...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|