NEXANS SA (NXS.DE) Stock Fundamental Analysis
FRA:NXS - Deutsche Boerse Ag - FR0000044448 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NXS. NXS was compared to 59 industry peers in the Electrical Equipment industry. NXS scores excellent on profitability, but there are concerns on its financial health. NXS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NXS was profitable.
In the past year NXS had a positive cash flow from operations.
NXS had positive earnings in 4 of the past 5 years.
In the past 5 years NXS always reported a positive cash flow from operatings.
1.2 Ratios
NXS has a Return On Assets of 5.11%. This is in the better half of the industry: NXS outperforms 74.07% of its industry peers.
NXS's Return On Equity of 21.82% is amongst the best of the industry. NXS outperforms 88.89% of its industry peers.
The Return On Invested Capital of NXS (13.16%) is better than 88.89% of its industry peers.
NXS had an Average Return On Invested Capital over the past 3 years of 9.60%. This is in line with the industry average of 9.50%.
The last Return On Invested Capital (13.16%) for NXS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 21.82% | ||
| ROIC | 13.16% |
ROA(3y)3.38%
ROA(5y)1.85%
ROE(3y)13.06%
ROE(5y)7.1%
ROIC(3y)9.6%
ROIC(5y)8.05%
1.3 Margins
The Profit Margin of NXS (3.29%) is comparable to the rest of the industry.
NXS's Profit Margin has improved in the last couple of years.
NXS has a Operating Margin of 6.11%. This is comparable to the rest of the industry: NXS outperforms 59.26% of its industry peers.
NXS's Operating Margin has improved in the last couple of years.
NXS's Gross Margin of 13.32% is on the low side compared to the rest of the industry. NXS is outperformed by 79.63% of its industry peers.
In the last couple of years the Gross Margin of NXS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 3.29% | ||
| GM | 13.32% |
OM growth 3Y19.86%
OM growth 5Y13.8%
PM growth 3Y29.56%
PM growth 5Y67.42%
GM growth 3Y5.25%
GM growth 5Y1.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NXS is creating value.
The number of shares outstanding for NXS has been increased compared to 1 year ago.
Compared to 5 years ago, NXS has more shares outstanding
NXS has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that NXS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NXS has a Altman-Z score of 2.43. This is in the better half of the industry: NXS outperforms 70.37% of its industry peers.
NXS has a debt to FCF ratio of 8.28. This is a slightly negative value and a sign of low solvency as NXS would need 8.28 years to pay back of all of its debts.
NXS has a better Debt to FCF ratio (8.28) than 64.81% 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.
The Debt to Equity ratio of NXS (1.05) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.43 |
ROIC/WACC2
WACC6.58%
2.3 Liquidity
A Current Ratio of 1.17 indicates that NXS should not have too much problems paying its short term obligations.
NXS has a Current ratio of 1.17. This is in the lower half of the industry: NXS underperforms 72.22% of its industry peers.
NXS has a Quick Ratio of 1.17. This is a bad value and indicates that NXS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, NXS is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
NXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.36%, which is quite impressive.
The Earnings Per Share has been growing by 20.32% on average over the past years. This is a very strong growth
NXS shows a strong growth in Revenue. In the last year, the Revenue has grown by 49.50%.
Measured over the past years, NXS shows a small growth in Revenue. The Revenue has been growing by 3.72% on average per year.
EPS 1Y (TTM)52.36%
EPS 3Y113.67%
EPS 5Y20.32%
EPS Q2Q%42.02%
Revenue 1Y (TTM)49.5%
Revenue growth 3Y9.22%
Revenue growth 5Y3.72%
Sales Q2Q%5.36%
3.2 Future
The Earnings Per Share is expected to grow by 15.22% on average over the next years. This is quite good.
NXS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y40.79%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
EPS Next 5Y15.22%
Revenue Next Year10.56%
Revenue Next 2Y6.71%
Revenue Next 3Y5.96%
Revenue Next 5Y1.45%
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.
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 14.37, NXS is valued correctly.
74.07% of the companies in the same industry are more expensive than NXS, based on the Price/Earnings ratio.
NXS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.08, the valuation of NXS can be described as correct.
NXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NXS is cheaper than 72.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NXS to the average of the S&P500 Index (92.74), we can say NXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than NXS, based on the Enterprise Value to EBITDA ratio.
74.07% of the companies in the same industry are more expensive than NXS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.43 | ||
| EV/EBITDA | 5.08 |
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 NXS may justify a higher PE ratio.
NXS's earnings are expected to grow with 19.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.71
EPS Next 2Y21.93%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, NXS has a reasonable but not impressive dividend return.
In the last 3 months the price of NXS has falen by -21.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NXS's Dividend Yield is rather good when compared to the industry average which is at 3.14. NXS pays more dividend than 85.19% of the companies in the same industry.
NXS's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
On average, the dividend of NXS grows each year by 22.94%, which is quite nice.
Dividend Growth(5Y)22.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NXS pays out 25.82% of its income as dividend. This is a sustainable payout ratio.
NXS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.82%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
NEXANS SA
FRA:NXS (2/4/2025, 7:00:00 PM)
92.85
+0.65 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.14%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap4.06B
Analysts72.22
Price Target120.49 (29.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.14
Dividend Growth(5Y)22.94%
DP25.82%
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)-7.22%
PT rev (3m)-7.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.34 | ||
| P/FCF | 17.43 | ||
| P/OCF | 6.22 | ||
| P/B | 2.24 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)6.46
EY6.96%
EPS(NY)7.69
Fwd EY8.28%
FCF(TTM)5.33
FCFY5.74%
OCF(TTM)14.93
OCFY16.08%
SpS274.61
BVpS41.37
TBVpS21.97
PEG (NY)0.35
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 21.82% | ||
| ROCE | 18.63% | ||
| ROIC | 13.16% | ||
| ROICexc | 17.96% | ||
| ROICexgc | 24.84% | ||
| OM | 6.11% | ||
| PM (TTM) | 3.29% | ||
| GM | 13.32% | ||
| FCFM | 1.94% |
ROA(3y)3.38%
ROA(5y)1.85%
ROE(3y)13.06%
ROE(5y)7.1%
ROIC(3y)9.6%
ROIC(5y)8.05%
ROICexc(3y)15.08%
ROICexc(5y)12.37%
ROICexgc(3y)19.82%
ROICexgc(5y)15.96%
ROCE(3y)13.91%
ROCE(5y)11.69%
ROICexcg growth 3Y33.18%
ROICexcg growth 5Y23.01%
ROICexc growth 3Y28.78%
ROICexc growth 5Y20.17%
OM growth 3Y19.86%
OM growth 5Y13.8%
PM growth 3Y29.56%
PM growth 5Y67.42%
GM growth 3Y5.25%
GM growth 5Y1.7%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 8.28 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 238.64% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 9.92 | ||
| Cash Conversion | 71.76% | ||
| Profit Quality | 58.99% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.43 |
F-Score8
WACC6.58%
ROIC/WACC2
Cap/Depr(3y)174.76%
Cap/Depr(5y)166.8%
Cap/Sales(3y)3.73%
Cap/Sales(5y)3.82%
Profit Quality(3y)121.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.36%
EPS 3Y113.67%
EPS 5Y20.32%
EPS Q2Q%42.02%
EPS Next Y40.79%
EPS Next 2Y21.93%
EPS Next 3Y19.24%
EPS Next 5Y15.22%
Revenue 1Y (TTM)49.5%
Revenue growth 3Y9.22%
Revenue growth 5Y3.72%
Sales Q2Q%5.36%
Revenue Next Year10.56%
Revenue Next 2Y6.71%
Revenue Next 3Y5.96%
Revenue Next 5Y1.45%
EBIT growth 1Y66.44%
EBIT growth 3Y30.91%
EBIT growth 5Y18.03%
EBIT Next Year77.84%
EBIT Next 3Y28.49%
EBIT Next 5Y20.29%
FCF growth 1Y70.07%
FCF growth 3Y16.41%
FCF growth 5Y42.15%
OCF growth 1Y75.07%
OCF growth 3Y15.47%
OCF growth 5Y21.7%