NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
127.7 EUR
+1.1 (+0.87%)
Overall NEX gets a fundamental rating of 5 out of 10. We evaluated NEX against 73 industry peers in the Electrical Equipment industry. While NEX has a great profitability rating, there are quite some 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
- NEX had positive earnings in the past year.
- In the past year NEX had a positive cash flow from operations.
- Each year in the past 5 years NEX has been profitable.
- In the past 5 years NEX always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of NEX (5.88%) is better than 76.71% of its industry peers.
- NEX has a Return On Equity of 25.22%. This is amongst the best in the industry. NEX outperforms 89.04% of its industry peers.
- NEX has a better Return On Invested Capital (9.23%) than 75.34% 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 9.58%.
| 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
- The Profit Margin of NEX (5.29%) is better than 71.23% of its industry peers.
- In the last couple of years the Profit Margin of NEX has grown nicely.
- NEX has a Operating Margin of 6.23%. This is in the better half of the industry: NEX outperforms 60.27% of its industry peers.
- NEX's Operating Margin has improved in the last couple of years.
- NEX has a worse Gross Margin (13.03%) than 84.93% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEX is still creating some value.
- NEX has about the same amout of shares outstanding than it did 1 year ago.
- 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
- 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 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 73.97% 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 has a worse Debt to Equity ratio (1.09) than 82.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.14
WACC8.11%
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 worse Current ratio (1.28) than 60.27% 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 (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
- 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.
- Measured over the past years, NEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.66% on average per year.
- The Revenue for NEX has decreased by -24.94% in the past year. This is quite bad
- 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 10.34% yearly.
- 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.
- 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
- The Price/Earnings ratio is 11.25, which indicates a very decent 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 91.78% of the companies listed in the same industry.
- NEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- NEX is valuated correctly with a Price/Forward Earnings ratio of 15.77.
- NEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEX is cheaper than 76.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NEX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
- 86.30% of the companies in the same industry are more expensive than NEX, based on the Enterprise Value to EBITDA ratio.
- NEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEX is cheaper than 89.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 6.21 |
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)0.69
PEG (5Y)0.64
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.06%, NEX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.82, NEX pays a better dividend. On top of this NEX pays more dividend than 89.04% of the companies listed 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 | 2.06% |
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 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.