NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
130.8 EUR
+1.1 (+0.85%)
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 75 industry peers in the Electrical Equipment industry. NEX has an excellent profitability rating, but there are concerns on its financial health. NEX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year NEX was profitable.
- NEX had a positive operating cash flow in the past year.
- NEX had positive earnings in each of the past 5 years.
- NEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NEX has a Return On Assets of 5.88%. This is in the better half of the industry: NEX outperforms 74.67% of its industry peers.
- The Return On Equity of NEX (25.22%) is better than 92.00% of its industry peers.
- NEX has a Return On Invested Capital of 9.23%. This is in the better half of the industry: NEX outperforms 76.00% of its industry peers.
- 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 9.57%.
| 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
- Looking at the Profit Margin, with a value of 5.29%, NEX is in the better half of the industry, outperforming 69.33% of the companies in the same industry.
- NEX's Profit Margin has improved in the last couple of years.
- NEX's Operating Margin of 6.23% is in line compared to the rest of the industry. NEX outperforms 60.00% of its industry peers.
- In the last couple of years the Operating Margin of NEX has grown nicely.
- NEX has a Gross Margin of 13.03%. This is amonst the worse of the industry: NEX underperforms 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
- 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.
- NEX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
- NEX has an Altman-Z score of 2.15. 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.
- NEX has a Altman-Z score (2.15) which 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.
- NEX has a Debt to FCF ratio of 3.52. This is in the better half of the industry: NEX outperforms 73.33% of its industry peers.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that NEX has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.09, NEX is doing worse than 81.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.07
WACC8.61%
2.3 Liquidity
- A Current Ratio of 1.28 indicates that NEX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.28, NEX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- 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 (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 75.70% over the past year.
- 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.
- The Revenue has been growing slightly by 4.88% on average over the past years.
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 10.34% yearly.
- Based on estimates for the next years, NEX will show a decrease in Revenue. The Revenue will decrease by -0.55% on average per year.
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.
- 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
- Based on the Price/Earnings ratio of 11.52, the valuation of NEX can be described as reasonable.
- 94.67% of the companies in the same industry are more expensive than NEX, based on the Price/Earnings ratio.
- NEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 16.15, the valuation of NEX can be described as correct.
- Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than 78.67% of the companies in the same industry.
- NEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaply inside the industry as 90.67% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.65 | ||
| EV/EBITDA | 6.37 |
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)0.7
PEG (5Y)0.65
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- NEX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
- NEX's Dividend Yield is rather good when compared to the industry average which is at 0.79. NEX pays more dividend than 89.33% of the companies in the same industry.
- NEX's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
- 24.11% of the earnings are spent on dividend by NEX. This is a low number and 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.