NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
NEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 industry peers in the Electrical Equipment industry. While NEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. NEX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NEX was profitable.
In the past year NEX had a positive cash flow from operations.
In the past 5 years NEX has always been profitable.
NEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.64%, NEX is doing good in the industry, outperforming 71.93% of the companies in the same industry.
With an excellent Return On Equity value of 15.38%, NEX belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
NEX has a better Return On Invested Capital (9.82%) than 82.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEX is above the industry average of 8.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROIC | 9.82% |
ROA(3y)3.61%
ROA(5y)3.05%
ROE(3y)14.42%
ROE(5y)12.2%
ROIC(3y)10.24%
ROIC(5y)8.63%
1.3 Margins
NEX has a better Profit Margin (3.26%) than 64.91% of its industry peers.
NEX's Profit Margin has improved in the last couple of years.
NEX has a Operating Margin of 6.61%. This is in the better half of the industry: NEX outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of NEX has grown nicely.
NEX has a Gross Margin of 13.73%. This is amonst the worse of the industry: NEX underperforms 84.21% of its industry peers.
NEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.61% | ||
| PM (TTM) | 3.26% | ||
| GM | 13.73% |
OM growth 3Y17.44%
OM growth 5Y12.24%
PM growth 3Y13.65%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y3.3%
2. Health
2.1 Basic Checks
NEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NEX has about the same amount of shares outstanding.
Compared to 5 years ago, NEX has more shares outstanding
Compared to 1 year ago, NEX has a worse debt to assets ratio.
2.2 Solvency
NEX has an Altman-Z score of 2.00. This is not the best score and indicates that NEX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.00, NEX is doing good in the industry, outperforming 64.91% of the companies in the same industry.
The Debt to FCF ratio of NEX is 4.90, which is a neutral value as it means it would take NEX, 4.90 years of fcf income to pay off all of its debts.
NEX's Debt to FCF ratio of 4.90 is fine compared to the rest of the industry. NEX outperforms 63.16% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that NEX has dependencies on debt financing.
NEX has a worse Debt to Equity ratio (1.05) than 80.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 2 |
ROIC/WACC1.42
WACC6.92%
2.3 Liquidity
NEX has a Current Ratio of 1.20. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NEX (1.20) is worse than 73.68% of its industry peers.
A Quick Ratio of 0.84 indicates that NEX may have some problems paying its short term obligations.
NEX's Quick ratio of 0.84 is on the low side compared to the rest of the industry. NEX is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.68%, which is quite impressive.
The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
NEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.57%.
The Revenue has been growing slightly by 4.88% on average over the past years.
EPS 1Y (TTM)38.68%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%33.81%
Revenue 1Y (TTM)-27.57%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%14.31%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
Based on estimates for the next years, NEX will show a decrease in Revenue. The Revenue will decrease by -2.24% on average per year.
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y6.93%
Revenue Next Year3.53%
Revenue Next 2Y4.02%
Revenue Next 3Y3.58%
Revenue Next 5Y-2.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.95, NEX is valued correctly.
Based on the Price/Earnings ratio, NEX is valued cheaper than 84.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (27.29), we can say NEX is valued slightly cheaper.
NEX is valuated correctly with a Price/Forward Earnings ratio of 13.93.
Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than 68.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, NEX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
82.46% of the companies in the same industry are more expensive than NEX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 80.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NEX may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)0.85
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.70, NEX pays a better dividend. On top of this NEX pays more dividend than 84.21% of the companies listed in the same industry.
NEX's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of NEX is nicely growing with an annual growth rate of 46.60%!
Dividend Growth(5Y)46.6%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
36.56% of the earnings are spent on dividend by NEX. This is a low number and sustainable payout ratio.
The dividend of NEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.56%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPA:NEX (7/8/2025, 10:02:10 AM)
107.2
+1.1 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.33%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap4.69B
Analysts72
Price Target118.63 (10.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend2.34
Dividend Growth(5Y)46.6%
DP36.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.11%
PT rev (3m)-4.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.93 | ||
| P/S | 0.55 | ||
| P/FCF | 11.87 | ||
| P/OCF | 6.07 | ||
| P/B | 2.59 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)7.17
EY6.69%
EPS(NY)7.69
Fwd EY7.18%
FCF(TTM)9.03
FCFY8.42%
OCF(TTM)17.67
OCFY16.48%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)2.05
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROCE | 13.92% | ||
| ROIC | 9.82% | ||
| ROICexc | 9.94% | ||
| ROICexgc | 12.25% | ||
| OM | 6.61% | ||
| PM (TTM) | 3.26% | ||
| GM | 13.73% | ||
| FCFM | 4.62% |
ROA(3y)3.61%
ROA(5y)3.05%
ROE(3y)14.42%
ROE(5y)12.2%
ROIC(3y)10.24%
ROIC(5y)8.63%
ROICexc(3y)15.8%
ROICexc(5y)13.35%
ROICexgc(3y)21.36%
ROICexgc(5y)17.57%
ROCE(3y)14.84%
ROCE(5y)12.68%
ROICexcg growth 3Y12.26%
ROICexcg growth 5Y14.43%
ROICexc growth 3Y8.04%
ROICexc growth 5Y11.49%
OM growth 3Y17.44%
OM growth 5Y12.24%
PM growth 3Y13.65%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y3.3%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 174.19% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 8.97 | ||
| Cash Conversion | 98.85% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2 |
F-Score6
WACC6.92%
ROIC/WACC1.42
Cap/Depr(3y)193.81%
Cap/Depr(5y)168.26%
Cap/Sales(3y)4.27%
Cap/Sales(5y)3.96%
Profit Quality(3y)129.14%
Profit Quality(5y)154.21%
High Growth Momentum
Growth
EPS 1Y (TTM)38.68%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%33.81%
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y6.93%
Revenue 1Y (TTM)-27.57%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%14.31%
Revenue Next Year3.53%
Revenue Next 2Y4.02%
Revenue Next 3Y3.58%
Revenue Next 5Y-2.24%
EBIT growth 1Y-16.3%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year50.2%
EBIT Next 3Y20.88%
EBIT Next 5Y14.42%
FCF growth 1Y21.54%
FCF growth 3Y26.31%
FCF growth 5Y52.43%
OCF growth 1Y10.11%
OCF growth 3Y24.35%
OCF growth 5Y20.84%