NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
Taking everything into account, NEX scores 6 out of 10 in our fundamental rating. NEX was compared to 59 industry peers in the Electrical Equipment industry. NEX has an excellent profitability rating, but there are concerns on its financial health. NEX is valued quite cheap, while showing a decent growth score. This is a good 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 4 of the past 5 years.
NEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEX's Return On Assets of 5.11% is fine compared to the rest of the industry. NEX outperforms 75.93% of its industry peers.
Looking at the Return On Equity, with a value of 21.82%, NEX belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.16%, NEX belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
NEX had an Average Return On Invested Capital over the past 3 years of 9.60%. This is in line with the industry average of 9.50%.
The 3 year average ROIC (9.60%) for NEX is below the current ROIC(13.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 21.82% | ||
| ROIC | 13.16% |
ROA(3y)3.38%
ROA(5y)1.85%
ROE(3y)13.06%
ROE(5y)7.1%
ROIC(3y)9.6%
ROIC(5y)8.05%
1.3 Margins
NEX has a Profit Margin of 3.29%. This is comparable to the rest of the industry: NEX outperforms 59.26% of its industry peers.
In the last couple of years the Profit Margin of NEX has grown nicely.
Looking at the Operating Margin, with a value of 6.11%, NEX is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
NEX's Operating Margin has improved in the last couple of years.
The Gross Margin of NEX (13.32%) is worse than 77.78% of its industry peers.
In the last couple of years the Gross Margin of NEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 3.29% | ||
| GM | 13.32% |
OM growth 3Y19.86%
OM growth 5Y13.8%
PM growth 3Y29.56%
PM growth 5Y67.42%
GM growth 3Y5.25%
GM growth 5Y1.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEX is creating value.
NEX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEX has more shares outstanding
The debt/assets ratio for NEX has remained at the same level compared to a year ago.
2.2 Solvency
NEX has an Altman-Z score of 2.42. 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 of 2.42. This is in the better half of the industry: NEX outperforms 68.52% of its industry peers.
NEX has a debt to FCF ratio of 8.28. This is a slightly negative value and a sign of low solvency as NEX would need 8.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.28, NEX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
NEX has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEX (1.05) is worse than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.42 |
ROIC/WACC2
WACC6.58%
2.3 Liquidity
A Current Ratio of 1.17 indicates that NEX should not have too much problems paying its short term obligations.
The Current ratio of NEX (1.17) is worse than 70.37% of its industry peers.
NEX has a Quick Ratio of 1.17. 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 (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.36% over the past year.
Measured over the past years, NEX shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.32% on average per year.
The Revenue has grown by 49.50% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.72% on average over the past years.
EPS 1Y (TTM)52.36%
EPS 3Y113.67%
EPS 5Y20.32%
EPS Q2Q%42.02%
Revenue 1Y (TTM)49.5%
Revenue growth 3Y9.22%
Revenue growth 5Y3.72%
Sales Q2Q%5.36%
3.2 Future
The Earnings Per Share is expected to grow by 15.22% on average over the next years. This is quite good.
Based on estimates for the next years, NEX will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y40.79%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
EPS Next 5Y15.22%
Revenue Next Year10.56%
Revenue Next 2Y6.71%
Revenue Next 3Y5.96%
Revenue Next 5Y1.45%
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.
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
The Price/Earnings ratio is 13.81, which indicates a correct valuation of NEX.
75.93% of the companies in the same industry are more expensive than NEX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. NEX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.61 indicates a reasonable valuation of NEX.
Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
NEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
79.63% of the companies in the same industry are more expensive than NEX, based on the Enterprise Value to EBITDA ratio.
75.93% of the companies in the same industry are more expensive than NEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.75 | ||
| EV/EBITDA | 5.07 |
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.
NEX's earnings are expected to grow with 19.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.68
EPS Next 2Y21.93%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
The stock price of NEX dropped by -22.23% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NEX's Dividend Yield is rather good when compared to the industry average which is at 3.14. NEX pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of NEX is nicely growing with an annual growth rate of 22.94%!
Dividend Growth(5Y)22.94%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
NEX pays out 25.82% 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.
DP25.82%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
NEXANS SA
EPA:NEX (2/5/2025, 5:29:55 PM)
89.2
-3.35 (-3.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.14%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap3.90B
Analysts72.22
Price Target121.39 (36.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.14
Dividend Growth(5Y)22.94%
DP25.82%
Div Incr Years5
Div Non Decr Years5
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)-6.53%
PT rev (3m)-7.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 11.61 | ||
| P/S | 0.32 | ||
| P/FCF | 16.75 | ||
| P/OCF | 5.98 | ||
| P/B | 2.16 | ||
| P/tB | 4.06 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)6.46
EY7.24%
EPS(NY)7.69
Fwd EY8.62%
FCF(TTM)5.33
FCFY5.97%
OCF(TTM)14.93
OCFY16.73%
SpS274.61
BVpS41.37
TBVpS21.97
PEG (NY)0.34
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 21.82% | ||
| ROCE | 18.63% | ||
| ROIC | 13.16% | ||
| ROICexc | 17.96% | ||
| ROICexgc | 24.84% | ||
| OM | 6.11% | ||
| PM (TTM) | 3.29% | ||
| GM | 13.32% | ||
| FCFM | 1.94% |
ROA(3y)3.38%
ROA(5y)1.85%
ROE(3y)13.06%
ROE(5y)7.1%
ROIC(3y)9.6%
ROIC(5y)8.05%
ROICexc(3y)15.08%
ROICexc(5y)12.37%
ROICexgc(3y)19.82%
ROICexgc(5y)15.96%
ROCE(3y)13.91%
ROCE(5y)11.69%
ROICexcg growth 3Y33.18%
ROICexcg growth 5Y23.01%
ROICexc growth 3Y28.78%
ROICexc growth 5Y20.17%
OM growth 3Y19.86%
OM growth 5Y13.8%
PM growth 3Y29.56%
PM growth 5Y67.42%
GM growth 3Y5.25%
GM growth 5Y1.7%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 8.28 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 238.64% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 9.92 | ||
| Cash Conversion | 71.76% | ||
| Profit Quality | 58.99% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.42 |
F-Score8
WACC6.58%
ROIC/WACC2
Cap/Depr(3y)174.76%
Cap/Depr(5y)166.8%
Cap/Sales(3y)3.73%
Cap/Sales(5y)3.82%
Profit Quality(3y)121.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.36%
EPS 3Y113.67%
EPS 5Y20.32%
EPS Q2Q%42.02%
EPS Next Y40.79%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
EPS Next 5Y15.22%
Revenue 1Y (TTM)49.5%
Revenue growth 3Y9.22%
Revenue growth 5Y3.72%
Sales Q2Q%5.36%
Revenue Next Year10.56%
Revenue Next 2Y6.71%
Revenue Next 3Y5.96%
Revenue Next 5Y1.45%
EBIT growth 1Y66.44%
EBIT growth 3Y30.91%
EBIT growth 5Y18.03%
EBIT Next Year77.84%
EBIT Next 3Y28.49%
EBIT Next 5Y20.29%
FCF growth 1Y70.07%
FCF growth 3Y16.41%
FCF growth 5Y42.15%
OCF growth 1Y75.07%
OCF growth 3Y15.47%
OCF growth 5Y21.7%