NEXA RESOURCES SA (NEXA) Stock Fundamental Analysis
USA - NYSE:NEXA - LU1701428291 - Common Stock
5.25 USD
-0.06 (-1.13%)
5.5 USD
+0.25 (+4.76%)
Taking everything into account, NEXA scores 3 out of 10 in our fundamental rating. NEXA was compared to 154 industry peers in the Metals & Mining industry. There are concerns on the financial health of NEXA while its profitability can be described as average. NEXA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NEXA had negative earnings in the past year.
NEXA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEXA reported negative net income in multiple years.
Each year in the past 5 years NEXA had a positive operating cash flow.
1.2 Ratios
NEXA has a Return On Assets (-1.86%) which is in line with its industry peers.
The Return On Equity of NEXA (-10.19%) is worse than 62.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.88%, NEXA is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.86% | ||
| ROE | -10.19% | ||
| ROIC | 6.88% |
ROA(3y)-3.12%
ROA(5y)-3.62%
ROE(3y)-15.39%
ROE(5y)-15.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 11.57%, NEXA is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
NEXA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.95%, NEXA is in line with its industry, outperforming 57.79% of the companies in the same industry.
In the last couple of years the Gross Margin of NEXA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.57% | ||
| PM (TTM) | N/A | ||
| GM | 18.95% |
OM growth 3Y-7.88%
OM growth 5Y52.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.47%
GM growth 5Y3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEXA is destroying value.
NEXA has about the same amout of shares outstanding than it did 1 year ago.
NEXA has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for NEXA is higher compared to a year ago.
2.2 Solvency
NEXA has an Altman-Z score of 0.52. This is a bad value and indicates that NEXA is not financially healthy and even has some risk of bankruptcy.
NEXA has a Altman-Z score of 0.52. This is amonst the worse of the industry: NEXA underperforms 83.12% of its industry peers.
NEXA has a debt to FCF ratio of 110.21. This is a negative value and a sign of low solvency as NEXA would need 110.21 years to pay back of all of its debts.
NEXA's Debt to FCF ratio of 110.21 is in line compared to the rest of the industry. NEXA outperforms 55.84% of its industry peers.
NEXA has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, NEXA is doing worse than 91.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 110.21 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.82
WACC8.41%
2.3 Liquidity
NEXA has a Current Ratio of 0.93. This is a bad value and indicates that NEXA is not financially healthy enough and could expect problems in meeting its short term obligations.
NEXA has a Current ratio of 0.93. This is amonst the worse of the industry: NEXA underperforms 86.36% of its industry peers.
A Quick Ratio of 0.60 indicates that NEXA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, NEXA is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for NEXA have decreased strongly by -16.92% in the last year.
The Revenue has been growing slightly by 7.51% in the past year.
Measured over the past years, NEXA shows a small growth in Revenue. The Revenue has been growing by 3.47% on average per year.
EPS 1Y (TTM)-16.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-133.33%
Revenue 1Y (TTM)7.51%
Revenue growth 3Y1.8%
Revenue growth 5Y3.47%
Sales Q2Q%7.62%
3.2 Future
Based on estimates for the next years, NEXA will show a very strong growth in Earnings Per Share. The EPS will grow by 23.08% on average per year.
NEXA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.09% yearly.
EPS Next Y162.21%
EPS Next 2Y71%
EPS Next 3Y46.02%
EPS Next 5Y23.08%
Revenue Next Year3.23%
Revenue Next 2Y2.64%
Revenue Next 3Y2.85%
Revenue Next 5Y1.09%
3.3 Evolution
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
NEXA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
NEXA is valuated cheaply with a Price/Forward Earnings ratio of 6.04.
Based on the Price/Forward Earnings ratio, NEXA is valued cheaper than 95.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEXA to the average of the S&P500 Index (32.68), we can say NEXA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEXA is valued cheaper than 99.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEXA is valued a bit cheaper than the industry average as 70.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.12 | ||
| EV/EBITDA | 3.34 |
4.3 Compensation for Growth
NEXA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEXA's earnings are expected to grow with 46.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71%
EPS Next 3Y46.02%
5. Dividend
5.1 Amount
NEXA has a Yearly Dividend Yield of 1.93%.
NEXA's Dividend Yield is rather good when compared to the industry average which is at 2.69. NEXA pays more dividend than 82.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NEXA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of NEXA decreases each year by -32.77%.
NEXA has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-32.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of NEXA are negative and hence is the payout ratio. NEXA will probably not be able to sustain this dividend level.
DP-41.54%
EPS Next 2Y71%
EPS Next 3Y46.02%
5.25
-0.06 (-1.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners25.59%
Inst Owner Change0.83%
Ins Owners1.8%
Ins Owner ChangeN/A
Market Cap695.31M
Revenue(TTM)2.77B
Net Income(TTM)-90.72M
Analysts49.23
Price Target6.17 (17.52%)
Short Float %0.16%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0.12
Dividend Growth(5Y)-32.77%
DP-41.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)78.85%
Min EPS beat(2)69.17%
Max EPS beat(2)88.54%
EPS beat(4)2
Avg EPS beat(4)-83.21%
Min EPS beat(4)-466.36%
Max EPS beat(4)88.54%
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)1
Avg Revenue beat(2)2.48%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)7.17%
Revenue beat(4)3
Avg Revenue beat(4)3.6%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)7.17%
Revenue beat(8)6
Avg Revenue beat(8)4.66%
Revenue beat(12)9
Avg Revenue beat(12)5.55%
Revenue beat(16)10
Avg Revenue beat(16)4%
PT rev (1m)7.49%
PT rev (3m)2.3%
EPS NQ rev (1m)-23.16%
EPS NQ rev (3m)-38.74%
EPS NY rev (1m)49.4%
EPS NY rev (3m)30.54%
Revenue NQ rev (1m)8.17%
Revenue NQ rev (3m)12.44%
Revenue NY rev (1m)6.6%
Revenue NY rev (3m)8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.04 | ||
| P/S | 0.25 | ||
| P/FCF | 40.12 | ||
| P/OCF | 2.5 | ||
| P/B | 0.78 | ||
| P/tB | 9.34 | ||
| EV/EBITDA | 3.34 |
EPS(TTM)-0.76
EYN/A
EPS(NY)0.87
Fwd EY16.55%
FCF(TTM)0.13
FCFY2.49%
OCF(TTM)2.1
OCFY40.01%
SpS21.04
BVpS6.72
TBVpS0.56
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.86% | ||
| ROE | -10.19% | ||
| ROCE | 8.71% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 10.33% | ||
| OM | 11.57% | ||
| PM (TTM) | N/A | ||
| GM | 18.95% | ||
| FCFM | 0.62% |
ROA(3y)-3.12%
ROA(5y)-3.62%
ROE(3y)-15.39%
ROE(5y)-15.7%
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
ROICexgc growth 3Y-5.02%
ROICexgc growth 5Y64.28%
ROICexc growth 3Y-3.04%
ROICexc growth 5Y68.86%
OM growth 3Y-7.88%
OM growth 5Y52.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.47%
GM growth 5Y3.06%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 110.21 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 79.02% | ||
| Cap/Sales | 9.36% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 42.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.52 |
F-Score5
WACC8.41%
ROIC/WACC0.82
Cap/Depr(3y)104.71%
Cap/Depr(5y)126.88%
Cap/Sales(3y)11.5%
Cap/Sales(5y)13.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-133.33%
EPS Next Y162.21%
EPS Next 2Y71%
EPS Next 3Y46.02%
EPS Next 5Y23.08%
Revenue 1Y (TTM)7.51%
Revenue growth 3Y1.8%
Revenue growth 5Y3.47%
Sales Q2Q%7.62%
Revenue Next Year3.23%
Revenue Next 2Y2.64%
Revenue Next 3Y2.85%
Revenue Next 5Y1.09%
EBIT growth 1Y161.48%
EBIT growth 3Y-6.22%
EBIT growth 5Y57.73%
EBIT Next Year77.49%
EBIT Next 3Y28.16%
EBIT Next 5Y19.01%
FCF growth 1Y110.65%
FCF growth 3Y121.67%
FCF growth 5YN/A
OCF growth 1Y75.08%
OCF growth 3Y-10.82%
OCF growth 5Y23.28%
NEXA RESOURCES SA / NEXA FAQ
What is the ChartMill fundamental rating of NEXA RESOURCES SA (NEXA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to NEXA.
Can you provide the valuation status for NEXA RESOURCES SA?
ChartMill assigns a valuation rating of 6 / 10 to NEXA RESOURCES SA (NEXA). This can be considered as Fairly Valued.
How profitable is NEXA RESOURCES SA (NEXA) stock?
NEXA RESOURCES SA (NEXA) has a profitability rating of 4 / 10.
What is the financial health of NEXA RESOURCES SA (NEXA) stock?
The financial health rating of NEXA RESOURCES SA (NEXA) is 1 / 10.
Is the dividend of NEXA RESOURCES SA sustainable?
The dividend rating of NEXA RESOURCES SA (NEXA) is 3 / 10 and the dividend payout ratio is -41.54%.