NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
122.1 EUR
-3.5 (-2.79%)
NEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Electrical Equipment industry. NEX scores excellent on profitability, but there are concerns on its financial health. NEX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
NEX has a Return On Assets of 5.88%. This is in the better half of the industry: NEX outperforms 75.00% of its industry peers.
With an excellent Return On Equity value of 25.22%, NEX belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
The Return On Invested Capital of NEX (9.23%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEX is in line with the industry average of 9.51%.
| 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's Profit Margin of 5.29% is fine compared to the rest of the industry. NEX outperforms 70.59% 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.
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 85.29% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEX is creating some value.
The number of shares outstanding for NEX remains at a similar level compared to 1 year ago.
NEX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEX has a worse debt to assets ratio.
2.2 Solvency
NEX has an Altman-Z score of 2.14. 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 (2.14) which is in line with its industry peers.
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 75.00% 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.
With a Debt to Equity ratio value of 1.09, NEX is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.13
WACC8.14%
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 63.24% of its industry peers.
A Quick Ratio of 0.96 indicates that NEX may have some problems paying its short term obligations.
NEX has a Quick ratio of 0.96. This is comparable to the rest of the industry: NEX outperforms 57.35% 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.
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 Y19.07%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
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
A Price/Earnings ratio of 10.76 indicates a reasonable valuation of NEX.
Compared to the rest of the industry, the Price/Earnings ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 92.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, NEX is valued rather cheaply.
NEX is valuated correctly with a Price/Forward Earnings ratio of 14.60.
76.47% of the companies in the same industry are more expensive than NEX, based on the Price/Forward Earnings ratio.
NEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
NEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEX is cheaper than 86.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | 6.16 |
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.
NEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.61
EPS Next 2Y8.01%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, NEX has a reasonable but not impressive dividend return.
NEX's Dividend Yield is rather good when compared to the industry average which is at 0.80. NEX pays more dividend than 88.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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.
The dividend of NEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.11%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPA:NEX (1/12/2026, 5:29:58 PM)
122.1
-3.5 (-2.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners64.9%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap5.34B
Revenue(TTM)9.02B
Net Income(TTM)477.00M
Analysts71.58
Price Target137.85 (12.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)0.05%
PT rev (3m)-0.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 14.6 | ||
| P/S | 0.59 | ||
| P/FCF | 9.01 | ||
| P/OCF | 5.68 | ||
| P/B | 2.82 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)11.35
EY9.3%
EPS(NY)8.36
Fwd EY6.85%
FCF(TTM)13.56
FCFY11.1%
OCF(TTM)21.51
OCFY17.62%
SpS206.17
BVpS43.23
TBVpS26.75
PEG (NY)0.56
PEG (5Y)0.61
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 | 2.14 |
F-Score7
WACC8.14%
ROIC/WACC1.13
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 5Y10.34%
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-0.55%
EBIT growth 1Y-23.43%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year53.71%
EBIT Next 3Y19.65%
EBIT Next 5Y13.6%
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.
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 19.07% in the next year.