NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
127.7 EUR
+1.1 (+0.87%)
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 73 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. 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 each of the past 5 years.
- In the past 5 years NEX always reported a positive cash flow from operatings.
1.2 Ratios
- NEX has a Return On Assets of 5.88%. This is in the better half of the industry: NEX outperforms 76.71% of its industry peers.
- NEX has a better Return On Equity (25.22%) than 89.04% of its industry peers.
- The Return On Invested Capital of NEX (9.23%) is better than 75.34% of its industry peers.
- NEX had an Average Return On Invested Capital over the past 3 years of 10.24%. This 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
- With a decent Profit Margin value of 5.29%, NEX is doing good in the industry, outperforming 71.23% of the companies in the same industry.
- In the last couple of years the Profit Margin of NEX has grown nicely.
- The Operating Margin of NEX (6.23%) is better than 60.27% of its industry peers.
- In the last couple of years the Operating Margin of NEX has grown nicely.
- The Gross Margin of NEX (13.03%) is worse than 84.93% 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.
- Compared to 1 year ago, NEX has about the same amount of shares outstanding.
- NEX has more shares outstanding than it did 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 of 2.14. This is comparable to the rest of the industry: NEX outperforms 54.79% 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 73.97% 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.
- Looking at the Debt to Equity ratio, with a value of 1.09, NEX is doing worse than 82.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.14
WACC8.11%
2.3 Liquidity
- NEX has a Current Ratio of 1.28. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
- NEX's Current ratio of 1.28 is on the low side compared to the rest of the industry. NEX is outperformed by 60.27% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 0.96, NEX is in line with its industry, outperforming 58.90% of the companies in the same industry.
| 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
- 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.
- Based on estimates for the next years, NEX will show a decrease in Revenue. The Revenue will decrease by -0.55% on average per year.
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
- 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
- A Price/Earnings ratio of 11.25 indicates a reasonable valuation of NEX.
- Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 91.78% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (27.21), we can say NEX is valued rather cheaply.
- A Price/Forward Earnings ratio of 15.77 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 76.71% of the companies listed in the same industry.
- NEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaper than 86.30% of the companies in the same industry.
- 89.04% 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 | 9.42 | ||
| EV/EBITDA | 6.21 |
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.
PEG (NY)0.69
PEG (5Y)0.64
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- NEX has a Yearly Dividend Yield of 2.05%.
- Compared to an average industry Dividend Yield of 0.81, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
- 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 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.