NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:NEX • FR0000044448
132.9 EUR
+1.6 (+1.22%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 75 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. 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.
- NEX had a positive operating cash flow in the past year.
- Each year in the past 5 years NEX has been profitable.
- NEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NEX has a better Return On Assets (5.88%) than 74.67% of its industry peers.
- With an excellent Return On Equity value of 25.22%, NEX belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.23%, NEX is doing good in the industry, outperforming 76.00% of the companies in the same industry.
- NEX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is in line with the industry average of 9.59%.
| 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 69.33% of its industry peers.
- NEX's Profit Margin has improved in the last couple of years.
- The Operating Margin of NEX (6.23%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of NEX has grown nicely.
- NEX has a worse Gross Margin (13.03%) than 82.67% of its industry peers.
- NEX's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEX is still creating some value.
- Compared to 1 year ago, NEX has about the same amount of shares outstanding.
- The number of shares outstanding for NEX has been increased compared to 5 years ago.
- Compared to 1 year ago, NEX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NEX (2.17) is comparable to the rest of the industry.
- The Debt to FCF ratio of NEX is 3.52, which is a good value as it means it would take NEX, 3.52 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.52, NEX is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- 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 81.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.07
WACC8.62%
2.3 Liquidity
- NEX has a Current Ratio of 1.28. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
- NEX has a Current ratio of 1.28. This is in the lower half of the industry: NEX underperforms 61.33% 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.
- With a Quick ratio value of 0.96, NEX perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
| 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.
- NEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
- NEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.94%.
- Measured over the past years, NEX shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
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
- Based on estimates for the next years, NEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.34% on average per year.
- The Revenue is expected to decrease by -0.55% on average over the next years.
EPS Next Y16.4%
EPS Next 2Y6.29%
EPS Next 3Y9.22%
EPS Next 5Y10.34%
Revenue Next Year-0.05%
Revenue Next 2Y0.08%
Revenue Next 3Y1.46%
Revenue Next 5Y-0.55%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- NEX is valuated reasonably with a Price/Earnings ratio of 11.71.
- Based on the Price/Earnings ratio, NEX is valued cheaper than 94.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (28.32), we can say NEX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 16.41, the valuation of NEX can be described as correct.
- Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than the industry average as 78.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. NEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
- NEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEX is cheaper than 90.67% of the companies in the same industry.
- NEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEX is cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 6.54 |
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)0.71
PEG (5Y)0.66
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- NEX has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.74, NEX pays a better dividend. On top of this NEX pays more dividend than 89.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
- 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 2Y6.29%
EPS Next 3Y9.22%
NEXANS SA / NEX.PA FAQ
What is the fundamental rating for NEX stock?
ChartMill assigns a fundamental rating of 5 / 10 to NEX.PA.
What is the valuation status of NEXANS SA (NEX.PA) stock?
ChartMill assigns a valuation rating of 8 / 10 to NEXANS SA (NEX.PA). This can be considered as Undervalued.
Can you provide the profitability details for NEXANS SA?
NEXANS SA (NEX.PA) has a profitability rating of 7 / 10.
What is the financial health of NEXANS SA (NEX.PA) stock?
The financial health rating of NEXANS SA (NEX.PA) is 3 / 10.
What is the expected EPS growth for NEXANS SA (NEX.PA) stock?
The Earnings per Share (EPS) of NEXANS SA (NEX.PA) is expected to grow by 16.4% in the next year.