NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
123.5 EUR
-2.5 (-1.98%)
Taking everything into account, NEX scores 6 out of 10 in our fundamental rating. NEX was compared to 66 industry peers in the Electrical Equipment industry. While NEX belongs to the best of the industry regarding profitability, there are some minor 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.
In the past year NEX had a positive cash flow from operations.
In the past 5 years NEX has always been profitable.
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 78.79% of the companies in the same industry.
NEX has a better Return On Equity (25.22%) than 92.42% 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 77.27% 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 9.83%.
| 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 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of NEX has grown nicely.
With a Operating Margin value of 6.23%, NEX perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
NEX's Operating Margin has improved in the last couple of years.
NEX's Gross Margin of 13.03% is on the low side compared to the rest of the industry. NEX is outperformed by 86.36% 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
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
The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.14 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NEX (2.14) is comparable to the rest of the industry.
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.
NEX's Debt to FCF ratio of 3.52 is amongst the best of the industry. NEX outperforms 80.30% 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.
The Debt to Equity ratio of NEX (1.09) is worse than 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.16
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.28 indicates that NEX should not have too much problems paying its short term obligations.
NEX has a Current ratio (1.28) which is in line with 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 57.58% of 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.
NEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
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
Based on estimates for the next years, NEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.66% on average per year.
NEX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y19.15%
EPS Next 2Y7.84%
EPS Next 3Y9.88%
EPS Next 5Y10.66%
Revenue Next Year0.07%
Revenue Next 2Y0.28%
Revenue Next 3Y1.4%
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
Based on the Price/Earnings ratio of 10.88, the valuation of NEX can be described as reasonable.
Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.54, NEX is valued rather cheaply.
The Price/Forward Earnings ratio is 14.81, 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 80.30% 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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
NEX's 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)0.57
PEG (5Y)0.62
EPS Next 2Y7.84%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.00%.
Compared to an average industry Dividend Yield of 2.23, NEX pays a better dividend. On top of this NEX pays more dividend than 87.88% of the companies listed in the same industry.
NEX's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 2Y7.84%
EPS Next 3Y9.88%
EPA:NEX (12/12/2025, 7:00:00 PM)
123.5
-2.5 (-1.98%)
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 Cap5.40B
Revenue(TTM)9.02B
Net Income(TTM)477.00M
Analysts71.58
Price Target137.77 (11.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)0.8%
PT rev (3m)1.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 14.81 | ||
| P/S | 0.6 | ||
| P/FCF | 9.11 | ||
| P/OCF | 5.74 | ||
| P/B | 2.86 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)11.35
EY9.19%
EPS(NY)8.34
Fwd EY6.75%
FCF(TTM)13.56
FCFY10.98%
OCF(TTM)21.51
OCFY17.42%
SpS206.17
BVpS43.23
TBVpS26.75
PEG (NY)0.57
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 | 2.14 |
F-Score7
WACC7.97%
ROIC/WACC1.16
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 Y19.15%
EPS Next 2Y7.84%
EPS Next 3Y9.88%
EPS Next 5Y10.66%
Revenue 1Y (TTM)-24.94%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%11.17%
Revenue Next Year0.07%
Revenue Next 2Y0.28%
Revenue Next 3Y1.4%
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 6 / 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 10.88 and the Price/Book (PB) ratio is 2.86.
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%.