NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
129.7 EUR
+1.7 (+1.33%)
Taking everything into account, NEX scores 5 out of 10 in our fundamental rating. NEX was compared to 75 industry peers in the Electrical Equipment industry. While NEX has a great profitability rating, there are quite some 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
- NEX had positive earnings in the past year.
- NEX had a positive operating cash flow in the past year.
- NEX had positive earnings in each of the past 5 years.
- Each year in the past 5 years NEX had a positive operating cash flow.
1.2 Ratios
- NEX has a better Return On Assets (5.88%) than 73.33% of its industry peers.
- NEX's Return On Equity of 25.22% is amongst the best of the industry. NEX outperforms 90.67% of its industry peers.
- The Return On Invested Capital of NEX (9.23%) is better than 74.67% 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 9.57%.
| 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 68.00% of its industry peers.
- NEX's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 6.23%, NEX perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
- NEX's Operating Margin has improved in the last couple of years.
- The Gross Margin of NEX (13.03%) is worse than 84.00% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEX 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.
- NEX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.15 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- NEX's Altman-Z score of 2.15 is in line compared to the rest of the industry. NEX outperforms 49.33% 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 72.00% 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.
- The Debt to Equity ratio of NEX (1.09) is worse than 82.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.07
WACC8.6%
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.
- The Current ratio of NEX (1.28) is worse than 61.33% 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 57.33% 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.
- The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
- The Revenue for NEX has decreased by -24.94% in the past year. This is quite bad
- 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
- Based on estimates for the next years, NEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.34% on average per year.
- 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
- 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
- With a Price/Earnings ratio of 11.43, the valuation of NEX can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 93.33% 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 28.87.
- The Price/Forward Earnings ratio is 16.01, which indicates a correct valuation of NEX.
- Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than 77.33% of the companies in the same industry.
- NEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaper than 89.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 90.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 6.28 |
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)0.7
PEG (5Y)0.65
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- NEX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.79, NEX pays a better dividend. On top of this NEX pays more dividend than 90.67% 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 | 2.05% |
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.