NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 59 industry peers in the Electrical Equipment industry. NEX scores excellent on profitability, but there are concerns on its financial health. NEX has a valuation in line with the averages, but on the other hand it scores bad 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.
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 3.64%, NEX is doing good in the industry, outperforming 68.33% of the companies in the same industry.
The Return On Equity of NEX (15.38%) is better than 83.33% of its industry peers.
NEX has a better Return On Invested Capital (9.94%) than 81.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROIC | 9.94% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NEX's Profit Margin of 3.26% is fine compared to the rest of the industry. NEX outperforms 66.67% of its industry peers.
NEX's Profit Margin has improved in the last couple of years.
The Operating Margin of NEX (6.39%) is better than 61.67% of its industry peers.
In the last couple of years the Operating Margin of NEX has grown nicely.
With a Gross Margin value of 13.73%, NEX is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 3.26% | ||
| GM | 13.73% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of NEX is 4.90, which is a neutral value as it means it would take NEX, 4.90 years of fcf income to pay off all of its debts.
NEX's Debt to FCF ratio of 4.90 is fine compared to the rest of the industry. NEX outperforms 66.67% of its industry peers.
NEX has a Debt/Equity ratio of 0.94. This is a neutral value indicating NEX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, NEX is not doing good in the industry: 78.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.20 indicates that NEX should not have too much problems paying its short term obligations.
NEX's Current ratio of 1.20 is on the low side compared to the rest of the industry. NEX is outperformed by 68.33% of its industry peers.
A Quick Ratio of 0.84 indicates that NEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, NEX is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NEX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.37%.
Measured over the past years, NEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.21% on average per year.
NEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.57%.
The Revenue has been growing slightly by 4.88% on average over the past years.
EPS 1Y (TTM)-22.37%
EPS 3Y19.21%
EPS 5YN/A
EPS Q2Q%-53.81%
Revenue 1Y (TTM)-27.57%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%14.31%
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 9.29% yearly.
The Revenue is expected to decrease by -0.35% on average over the next years.
EPS Next Y5.95%
EPS Next 2Y10.01%
EPS Next 3Y12.13%
EPS Next 5Y9.29%
Revenue Next Year2.53%
Revenue Next 2Y3.66%
Revenue Next 3Y3.95%
Revenue Next 5Y-0.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 15.35, NEX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of NEX indicates a somewhat cheap valuation: NEX is cheaper than 73.33% of the companies listed in the same industry.
NEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 12.21, which indicates a correct valuation of NEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEX indicates a somewhat cheap valuation: NEX is cheaper than 71.67% of the companies listed in the same industry.
NEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEX indicates a somewhat cheap valuation: NEX is cheaper than 80.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEX does not grow enough to justify the current Price/Earnings ratio.
NEX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NEX's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)2.58
PEG (5Y)N/A
EPS Next 2Y10.01%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, NEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, NEX pays a better dividend. On top of this NEX pays more dividend than 83.33% of the companies listed in the same industry.
NEX's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
On average, the dividend of NEX grows each year by 22.94%, which is quite nice.
Dividend Growth(5Y)22.94%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
NEX pays out 36.56% 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.
DP36.56%
EPS Next 2Y10.01%
EPS Next 3Y12.13%
EPA:NEX (3/7/2025, 7:00:00 PM)
95.2
+0.45 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.63%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap4.17B
Analysts71.58
Price Target123.32 (29.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend2.14
Dividend Growth(5Y)22.94%
DP36.56%
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)1.59%
PT rev (3m)-3.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.43%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 12.21 | ||
| P/S | 0.49 | ||
| P/FCF | 10.54 | ||
| P/OCF | 5.39 | ||
| P/B | 2.3 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)6.2
EY6.51%
EPS(NY)7.8
Fwd EY8.19%
FCF(TTM)9.03
FCFY9.48%
OCF(TTM)17.67
OCFY18.56%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)2.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROCE | 13.45% | ||
| ROIC | 9.94% | ||
| ROICexc | 14.39% | ||
| ROICexgc | 20.04% | ||
| OM | 6.39% | ||
| PM (TTM) | 3.26% | ||
| GM | 13.73% | ||
| FCFM | 4.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 174.19% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 8.67 | ||
| Cash Conversion | 101.31% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | N/A |
F-Score6
WACC7.82%
ROIC/WACC1.27
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)-22.37%
EPS 3Y19.21%
EPS 5YN/A
EPS Q2Q%-53.81%
EPS Next Y5.95%
EPS Next 2Y10.01%
EPS Next 3Y12.13%
EPS Next 5Y9.29%
Revenue 1Y (TTM)-27.57%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%14.31%
Revenue Next Year2.53%
Revenue Next 2Y3.66%
Revenue Next 3Y3.95%
Revenue Next 5Y-0.35%
EBIT growth 1Y-19.11%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year52.11%
EBIT Next 3Y23.72%
EBIT Next 5Y8.25%
FCF growth 1Y21.54%
FCF growth 3Y26.31%
FCF growth 5Y52.43%
OCF growth 1Y10.11%
OCF growth 3Y24.35%
OCF growth 5Y20.84%