NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
125.8 EUR
-0.8 (-0.63%)
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 65 industry peers in the Electrical Equipment industry. While NEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEX.
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
With a decent Return On Assets value of 5.88%, NEX is doing good in the industry, outperforming 75.38% of the companies in the same industry.
NEX has a better Return On Equity (25.22%) than 89.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.23%, NEX is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEX is in line with the industry average of 10.08%.
| 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 has a better Profit Margin (5.29%) than 69.23% of its industry peers.
In the last couple of years the Profit Margin of NEX has grown nicely.
NEX's Operating Margin of 6.23% is in line compared to the rest of the industry. NEX outperforms 56.92% of its industry peers.
NEX's Operating Margin has improved in the last couple of years.
NEX has a Gross Margin of 13.03%. This is amonst the worse of the industry: NEX underperforms 87.69% 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.
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.
NEX has a worse debt/assets ratio than last year.
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 of 2.14. This is comparable to the rest of the industry: NEX outperforms 53.85% of its industry peers.
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 has a Debt to FCF ratio of 3.52. This is in the better half of the industry: NEX outperforms 75.38% 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.
NEX has a worse Debt to Equity ratio (1.09) than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.16
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.28 indicates that NEX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.28, NEX is in line with its industry, outperforming 43.08% of the companies in the same industry.
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 of 0.96. This is comparable to the rest of the industry: NEX outperforms 60.00% 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.
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.
Looking at the last year, NEX shows a very negative growth in Revenue. The Revenue has decreased by -24.94% in the last year.
Measured over the past years, NEX shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
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
The Earnings Per Share is expected to grow by 10.66% on average over the next years. This is quite good.
NEX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y19.07%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPS Next 5Y10.66%
Revenue Next Year-0.05%
Revenue Next 2Y0.08%
Revenue Next 3Y1.46%
Revenue Next 5Y-0.26%
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
NEX is valuated reasonably with a Price/Earnings ratio of 11.08.
Based on the Price/Earnings ratio, NEX is valued cheaper than 93.85% of the companies in the same industry.
NEX is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.04, the valuation of NEX can be described as correct.
Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEX to the average of the S&P500 Index (23.13), we can say NEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
NEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEX is cheaper than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.28 | ||
| EV/EBITDA | 6.17 |
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)0.58
PEG (5Y)0.63
EPS Next 2Y8.01%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.88, NEX pays a better dividend. On top of this NEX pays more dividend than 87.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
On average, the dividend of NEX grows each year by 46.60%, which is quite nice.
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.
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 (12/31/2025, 7:00:00 PM)
125.8
-0.8 (-0.63%)
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 Cap5.50B
Revenue(TTM)9.02B
Net Income(TTM)477.00M
Analysts71.58
Price Target137.85 (9.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
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)0.6%
PT rev (3m)0.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.14%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 15.04 | ||
| P/S | 0.61 | ||
| P/FCF | 9.28 | ||
| P/OCF | 5.85 | ||
| P/B | 2.91 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)11.35
EY9.02%
EPS(NY)8.36
Fwd EY6.65%
FCF(TTM)13.56
FCFY10.78%
OCF(TTM)21.51
OCFY17.1%
SpS206.17
BVpS43.23
TBVpS26.75
PEG (NY)0.58
PEG (5Y)0.63
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
WACC7.96%
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 Y19.07%
EPS Next 2Y8.01%
EPS Next 3Y10.16%
EPS Next 5Y10.66%
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-0.26%
EBIT growth 1Y-23.43%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year53.71%
EBIT Next 3Y19.65%
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 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.