NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
124.8 EUR
+0.6 (+0.48%)
Taking everything into account, NEX scores 5 out of 10 in our fundamental rating. NEX was compared to 69 industry peers in the Electrical Equipment industry. NEX scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEX.
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.
NEX had positive earnings in each of the past 5 years.
In the past 5 years NEX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.88%, NEX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
The Return On Equity of NEX (25.22%) is better than 88.41% of its industry peers.
With a decent Return On Invested Capital value of 9.23%, NEX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEX is in line with the industry average of 10.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 25.22% | ||
| ROIC | 9.23% |
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 Profit Margin of 5.29%. This is in the better half of the industry: NEX outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of NEX has grown nicely.
NEX has a Operating Margin (6.23%) which is in line with its industry peers.
NEX's Operating Margin has improved in the last couple of years.
NEX has a worse Gross Margin (13.03%) than 85.51% of its industry peers.
In the last couple of years the Gross Margin of NEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.23% | ||
| PM (TTM) | 5.29% | ||
| GM | 13.03% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEX 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
NEX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
NEX's Altman-Z score of 2.13 is in line compared to the rest of the industry. NEX outperforms 57.97% of its industry peers.
NEX has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as NEX would need 3.52 years to pay back of all of its debts.
The Debt to FCF ratio of NEX (3.52) is better than 73.91% of its industry peers.
NEX has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
NEX's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. NEX is outperformed by 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.14
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.28 indicates that NEX should not have too much problems paying its short term obligations.
NEX's Current ratio of 1.28 is in line compared to the rest of the industry. NEX outperforms 42.03% of its industry peers.
NEX has a Quick Ratio of 1.28. This is a bad value and indicates that NEX is not financially healthy enough and could expect problems in meeting its short term obligations.
NEX has a Quick ratio of 0.96. This is comparable to the rest of the industry: NEX outperforms 57.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.70%, which is quite impressive.
The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
Looking at the last year, NEX shows a very negative growth in Revenue. The Revenue has decreased by -24.94% in the last year.
NEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.88% yearly.
EPS 1Y (TTM)75.7%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%95.87%
Revenue 1Y (TTM)-24.94%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%11.17%
3.2 Future
NEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.66% yearly.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y19.07%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPS Next 5Y10.66%
Revenue Next Year-0.05%
Revenue Next 2Y0.08%
Revenue Next 3Y1.46%
Revenue Next 5Y-0.26%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.00 indicates a reasonable valuation of NEX.
Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 92.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (26.57), we can say NEX is valued rather cheaply.
The Price/Forward Earnings ratio is 14.92, which indicates a correct valuation of NEX.
NEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEX is cheaper than 81.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEX to the average of the S&P500 Index (24.04), we can say NEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaper than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 88.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NEX may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)0.62
EPS Next 2Y8.01%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 0.90, NEX pays a better dividend. On top of this NEX pays more dividend than 89.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of NEX grows each year by 46.60%, which is quite nice.
Dividend Growth(5Y)46.6%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NEX pays out 24.11% of its income as dividend. This is a sustainable payout ratio.
NEX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.11%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPA:NEX (12/24/2025, 7:00:00 PM)
124.8
+0.6 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners65.99%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap5.46B
Revenue(TTM)9.02B
Net Income(TTM)477.00M
Analysts71.58
Price Target137.85 (10.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend2.34
Dividend Growth(5Y)46.6%
DP24.11%
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)0.85%
PT rev (3m)0.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 14.92 | ||
| P/S | 0.61 | ||
| P/FCF | 9.21 | ||
| P/OCF | 5.8 | ||
| P/B | 2.89 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)11.35
EY9.09%
EPS(NY)8.36
Fwd EY6.7%
FCF(TTM)13.56
FCFY10.86%
OCF(TTM)21.51
OCFY17.24%
SpS206.17
BVpS43.23
TBVpS26.75
PEG (NY)0.58
PEG (5Y)0.62
Graham Number105.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 25.22% | ||
| ROCE | 13.49% | ||
| ROIC | 9.23% | ||
| ROICexc | 16.89% | ||
| ROICexgc | 23.9% | ||
| OM | 6.23% | ||
| PM (TTM) | 5.29% | ||
| GM | 13.03% | ||
| FCFM | 6.58% |
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%
ROICexgc growth 3Y12.26%
ROICexgc 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-Score7
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 122.54% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 6.53 | ||
| Cash Conversion | 111.23% | ||
| Profit Quality | 124.32% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.13 |
F-Score7
WACC8.1%
ROIC/WACC1.14
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)75.7%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%95.87%
EPS Next Y19.07%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPS Next 5Y10.66%
Revenue 1Y (TTM)-24.94%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%11.17%
Revenue Next Year-0.05%
Revenue Next 2Y0.08%
Revenue Next 3Y1.46%
Revenue Next 5Y-0.26%
EBIT growth 1Y-23.43%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year53.46%
EBIT Next 3Y19.76%
EBIT Next 5Y13.92%
FCF growth 1Y47.15%
FCF growth 3Y26.31%
FCF growth 5Y52.43%
OCF growth 1Y30.15%
OCF growth 3Y24.35%
OCF growth 5Y20.84%
NEXANS SA / NEX.PA FAQ
What is the fundamental rating for NEX stock?
ChartMill assigns a fundamental rating of 5 / 10 to NEX.PA.
Can you provide the valuation status for NEXANS SA?
ChartMill assigns a valuation rating of 8 / 10 to NEXANS SA (NEX.PA). This can be considered as Undervalued.
What is the profitability of NEX stock?
NEXANS SA (NEX.PA) has a profitability rating of 7 / 10.
What is the valuation of NEXANS SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEXANS SA (NEX.PA) is 11 and the Price/Book (PB) ratio is 2.89.
Can you provide the dividend sustainability for NEX stock?
The dividend rating of NEXANS SA (NEX.PA) is 6 / 10 and the dividend payout ratio is 24.11%.