NEXA RESOURCES SA (NEXA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEXA - LU1701428291 - Common Stock
14.12 USD
+0.07 (+0.5%)
13.84 USD
-0.28 (-1.98%)
We assign a fundamental rating of 3 out of 10 to NEXA. NEXA was compared to 154 industry peers in the Metals & Mining industry. While NEXA is still in line with the averages on profitability rating, there are concerns on its financial health. NEXA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year NEXA has reported negative net income.
- NEXA had a positive operating cash flow in the past year.
- In multiple years NEXA reported negative net income over the last 5 years.
- NEXA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.31%, NEXA is in line with its industry, outperforming 57.14% of the companies in the same industry.
- NEXA has a Return On Equity (-1.66%) which is comparable to the rest of the industry.
- The Return On Invested Capital of NEXA (6.79%) is better than 66.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -1.66% | ||
| ROIC | 6.79% |
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
- With a decent Operating Margin value of 11.71%, NEXA is doing good in the industry, outperforming 66.23% of the companies in the same industry.
- NEXA's Operating Margin has improved in the last couple of years.
- NEXA has a Gross Margin (19.34%) which is comparable to the rest of the industry.
- NEXA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.71% | ||
| PM (TTM) | N/A | ||
| GM | 19.34% |
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.
- The number of shares outstanding for NEXA remains at a similar level compared to 1 year ago.
- NEXA has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NEXA has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.68, we must say that NEXA is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.68, NEXA is doing worse than 85.06% of the companies in the same industry.
- The Debt to FCF ratio of NEXA is 64.41, which is on the high side as it means it would take NEXA, 64.41 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of NEXA (64.41) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.84 is on the high side and indicates that NEXA has dependencies on debt financing.
- NEXA's Debt to Equity ratio of 1.84 is on the low side compared to the rest of the industry. NEXA is outperformed by 88.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 64.41 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.69
WACC9.91%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that NEXA may have some problems paying its short term obligations.
- NEXA's Current ratio of 0.91 is on the low side compared to the rest of the industry. NEXA is outperformed by 87.01% of its industry peers.
- NEXA has a Quick Ratio of 0.91. This is a bad value and indicates that NEXA is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.60, NEXA is not doing good in the industry: 85.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| 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.
- Looking at the last year, NEXA shows a very negative growth in Revenue. The Revenue has decreased by -12.22% in the last year.
- The Revenue has been growing slightly by 3.47% on average over the past years.
EPS 1Y (TTM)-16.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-133.33%
Revenue 1Y (TTM)-12.22%
Revenue growth 3Y1.8%
Revenue growth 5Y3.47%
Sales Q2Q%7.62%
3.2 Future
- NEXA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.90% yearly.
- The Revenue is expected to grow by 1.09% on average over the next years.
EPS Next Y166.19%
EPS Next 2Y78.95%
EPS Next 3Y48.66%
EPS Next 5Y26.9%
Revenue Next Year6.1%
Revenue Next 2Y4.88%
Revenue Next 3Y3.83%
Revenue Next 5Y1.09%
3.3 Evolution
- 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
- The Price/Earnings Ratio is negative for NEXA. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 12.49 indicates a correct valuation of NEXA.
- 82.47% of the companies in the same industry are more expensive than NEXA, based on the Price/Forward Earnings ratio.
- NEXA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEXA indicates a rather cheap valuation: NEXA is cheaper than 98.05% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEXA indicates a somewhat cheap valuation: NEXA is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.89 | ||
| EV/EBITDA | 5.05 |
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.
- A more expensive valuation may be justified as NEXA's earnings are expected to grow with 48.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y78.95%
EPS Next 3Y48.66%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.76%, NEXA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, NEXA pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.76, NEXA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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-285.8%
EPS Next 2Y78.95%
EPS Next 3Y48.66%
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.
What is the valuation status of NEXA RESOURCES SA (NEXA) stock?
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.
How financially healthy is NEXA RESOURCES SA?
The financial health rating of NEXA RESOURCES SA (NEXA) is 1 / 10.