NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
Overall NEX gets a fundamental rating of 5 out of 10. We evaluated NEX against 52 industry peers in the Electrical Equipment industry. While NEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. NEX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NEX was profitable.
NEX had a positive operating cash flow in the past year.
Each year in the past 5 years NEX has been profitable.
Each year in the past 5 years NEX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.64%, NEX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Return On Equity of NEX (15.38%) is better than 82.69% of its industry peers.
NEX's Return On Invested Capital of 9.82% is amongst the best of the industry. NEX outperforms 82.69% of its industry peers.
NEX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is above the industry average of 7.71%.
| 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
The Profit Margin of NEX (3.26%) is better than 65.38% of its industry peers.
NEX's Profit Margin has improved in the last couple of years.
NEX has a better Operating Margin (6.61%) than 61.54% of its industry peers.
NEX's Operating Margin has improved in the last couple of years.
NEX's Gross Margin of 13.73% is on the low side compared to the rest of the industry. NEX is outperformed by 82.69% of its industry peers.
In the last couple of years the Gross Margin of NEX has grown nicely.
| 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 NEX is still creating some value.
The number of shares outstanding for NEX remains at a similar level compared to 1 year ago.
NEX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.98, NEX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Debt to FCF ratio of NEX is 4.90, which is a neutral value as it means it would take NEX, 4.90 years of fcf income to pay off all of its debts.
NEX's Debt to FCF ratio of 4.90 is fine compared to the rest of the industry. NEX outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that NEX has dependencies on debt financing.
NEX has a worse Debt to Equity ratio (1.05) than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.41
WACC6.98%
2.3 Liquidity
A Current Ratio of 1.20 indicates that NEX should not have too much problems paying its short term obligations.
NEX has a worse Current ratio (1.20) than 67.31% of its industry peers.
A Quick Ratio of 0.84 indicates that NEX may have some problems paying its short term obligations.
NEX has a Quick ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.68% over the past year.
Measured over the past years, NEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.66% on average per year.
Looking at the last year, NEX 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
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
NEX 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 Year3.53%
Revenue Next 2Y4.02%
Revenue Next 3Y3.58%
Revenue Next 5Y-0.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
NEX is valuated correctly with a Price/Earnings ratio of 14.27.
Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, NEX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.30, the valuation of NEX can be described as correct.
NEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEX is cheaper than 73.08% of the companies in the same industry.
NEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
NEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEX is cheaper than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NEX may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)0.81
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, NEX has a reasonable but not impressive dividend return.
NEX's Dividend Yield is rather good when compared to the industry average which is at 2.57. NEX pays more dividend than 82.69% of the companies in the same industry.
NEX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of NEX is nicely growing with an annual growth rate of 46.60%!
Dividend Growth(5Y)46.6%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
36.56% of the earnings are spent on dividend by NEX. This is a low number and sustainable payout ratio.
NEX'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%
EPA:NEX (5/30/2025, 10:15:34 AM)
102.3
+1.3 (+1.29%)
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 Cap4.48B
Analysts71.58
Price Target118.77 (16.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend2.34
Dividend Growth(5Y)46.6%
DP36.56%
Div Incr Years5
Div Non Decr Years5
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)-3.92%
PT rev (3m)-2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 13.3 | ||
| P/S | 0.52 | ||
| P/FCF | 11.33 | ||
| P/OCF | 5.79 | ||
| P/B | 2.47 | ||
| P/tB | 4.37 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)7.17
EY7.01%
EPS(NY)7.69
Fwd EY7.52%
FCF(TTM)9.03
FCFY8.83%
OCF(TTM)17.67
OCFY17.27%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)1.95
PEG (5Y)0.81
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 | 1.98 |
F-Score6
WACC6.98%
ROIC/WACC1.41
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 Year3.53%
Revenue Next 2Y4.02%
Revenue Next 3Y3.58%
Revenue Next 5Y-0.25%
EBIT growth 1Y-16.3%
EBIT growth 3Y23.36%
EBIT growth 5Y17.71%
EBIT Next Year50.2%
EBIT Next 3Y20.88%
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%