NEXANS SA (NXS.DE) Stock Fundamental Analysis
FRA:NXS - Deutsche Boerse Ag - FR0000044448 - Common Stock - Currency: EUR
Overall NXS gets a fundamental rating of 5 out of 10. We evaluated NXS against 53 industry peers in the Electrical Equipment industry. While NXS belongs to the best of the industry regarding profitability, there are concerns on its financial health. NXS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NXS had positive earnings in the past year.
In the past year NXS had a positive cash flow from operations.
In the past 5 years NXS has always been profitable.
Each year in the past 5 years NXS had a positive operating cash flow.
1.2 Ratios
NXS has a better Return On Assets (3.64%) than 66.04% of its industry peers.
NXS has a better Return On Equity (15.38%) than 84.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.82%, NXS belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXS is above the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROIC | 9.82% |
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
NXS has a Profit Margin of 3.26%. This is in the better half of the industry: NXS outperforms 66.04% of its industry peers.
In the last couple of years the Profit Margin of NXS has grown nicely.
With a decent Operating Margin value of 6.61%, NXS is doing good in the industry, outperforming 60.38% of the companies in the same industry.
In the last couple of years the Operating Margin of NXS has grown nicely.
NXS has a worse Gross Margin (13.73%) than 77.36% of its industry peers.
NXS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.61% | ||
| 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 NXS is still creating some value.
The number of shares outstanding for NXS remains at a similar level compared to 1 year ago.
NXS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NXS has a worse debt to assets ratio.
2.2 Solvency
NXS has an Altman-Z score of 1.93. This is not the best score and indicates that NXS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, NXS is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
The Debt to FCF ratio of NXS is 4.90, which is a neutral value as it means it would take NXS, 4.90 years of fcf income to pay off all of its debts.
NXS's Debt to FCF ratio of 4.90 is fine compared to the rest of the industry. NXS outperforms 60.38% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that NXS has dependencies on debt financing.
NXS has a Debt to Equity ratio of 1.05. This is amonst the worse of the industry: NXS underperforms 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.38
WACC7.13%
2.3 Liquidity
NXS has a Current Ratio of 1.20. This is a normal value and indicates that NXS is financially healthy and should not expect problems in meeting its short term obligations.
NXS has a Current ratio of 1.20. This is in the lower half of the industry: NXS underperforms 69.81% of its industry peers.
NXS has a Quick Ratio of 1.20. This is a bad value and indicates that NXS is not financially healthy enough and could expect problems in meeting its short term obligations.
NXS has a worse Quick ratio (0.84) than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.68%, which is quite impressive.
The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
Looking at the last year, NXS shows a very negative growth in Revenue. The Revenue has decreased by -27.57% in the last year.
The Revenue has been growing slightly by 4.88% on average over the past years.
EPS 1Y (TTM)38.68%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%33.81%
Revenue 1Y (TTM)-27.57%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%14.31%
3.2 Future
Based on estimates for the next years, NXS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
NXS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.25% yearly.
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y8.55%
Revenue Next Year2.53%
Revenue Next 2Y3.66%
Revenue Next 3Y3.95%
Revenue Next 5Y-0.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 12.41, NXS is valued correctly.
Based on the Price/Earnings ratio, NXS is valued cheaper than 81.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of NXS to the average of the S&P500 Index (27.63), we can say NXS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.56, the valuation of NXS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NXS indicates a somewhat cheap valuation: NXS is cheaper than 75.47% of the companies listed in the same industry.
NXS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXS is valued a bit cheaper than the industry average as 75.47% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NXS is valued cheaper than 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NXS may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)0.7
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
NXS has a Yearly Dividend Yield of 2.97%.
NXS's Dividend Yield is rather good when compared to the industry average which is at 2.98. NXS pays more dividend than 84.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, NXS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of NXS is nicely growing with an annual growth rate of 46.60%!
Dividend Growth(5Y)46.6%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
36.56% of the earnings are spent on dividend by NXS. This is a low number and sustainable payout ratio.
NXS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.56%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
FRA:NXS (4/16/2025, 7:00:00 PM)
88.95
-1.55 (-1.71%)
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 Cap3.89B
Analysts71.58
Price Target124.57 (40.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.34
Dividend Growth(5Y)46.6%
DP36.56%
Div Incr Years2
Div Non Decr Years2
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)2.54%
PT rev (3m)-4.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-7.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.46 | ||
| P/FCF | 9.85 | ||
| P/OCF | 5.03 | ||
| P/B | 2.15 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)7.17
EY8.06%
EPS(NY)7.69
Fwd EY8.65%
FCF(TTM)9.03
FCFY10.15%
OCF(TTM)17.67
OCFY19.86%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)1.7
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 15.38% | ||
| ROCE | 13.92% | ||
| ROIC | 9.82% | ||
| ROICexc | 9.94% | ||
| ROICexgc | 12.25% | ||
| OM | 6.61% | ||
| PM (TTM) | 3.26% | ||
| GM | 13.73% | ||
| FCFM | 4.62% |
ROA(3y)3.61%
ROA(5y)3.05%
ROE(3y)14.42%
ROE(5y)12.2%
ROIC(3y)10.24%
ROIC(5y)8.63%
ROICexc(3y)15.8%
ROICexc(5y)13.35%
ROICexgc(3y)21.36%
ROICexgc(5y)17.57%
ROCE(3y)14.84%
ROCE(5y)12.68%
ROICexcg growth 3Y12.26%
ROICexcg growth 5Y14.43%
ROICexc growth 3Y8.04%
ROICexc growth 5Y11.49%
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 | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 174.19% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 8.97 | ||
| Cash Conversion | 98.85% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.93 |
F-Score6
WACC7.13%
ROIC/WACC1.38
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)38.68%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%33.81%
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y8.55%
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-0.25%
EBIT growth 1Y-16.3%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year51.7%
EBIT Next 3Y20.93%
EBIT Next 5Y14.42%
FCF growth 1Y21.54%
FCF growth 3Y26.31%
FCF growth 5Y52.43%
OCF growth 1Y10.11%
OCF growth 3Y24.35%
OCF growth 5Y20.84%