NEXANS SA (NEX.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NEX - FR0000044448 - Common Stock
127.2 EUR
-0.5 (-0.39%)
Taking everything into account, NEX scores 5 out of 10 in our fundamental rating. NEX was compared to 75 industry peers in the Electrical Equipment industry. NEX scores excellent on profitability, but there are concerns on its financial health. NEX is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- NEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NEX has a better Return On Assets (5.88%) than 73.33% of its industry peers.
- Looking at the Return On Equity, with a value of 25.22%, NEX belongs to the top of the industry, outperforming 90.67% of the companies in the same industry.
- The Return On Invested Capital of NEX (9.23%) is better than 74.67% of its industry peers.
- NEX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is in line with the industry average of 9.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 25.22% | ||
| ROIC | 9.23% |
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
- NEX's Profit Margin of 5.29% is fine compared to the rest of the industry. NEX outperforms 68.00% of its industry peers.
- In the last couple of years the Profit Margin of NEX has grown nicely.
- With a Operating Margin value of 6.23%, NEX perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of NEX has grown nicely.
- The Gross Margin of NEX (13.03%) is worse than 84.00% of its industry peers.
- In the last couple of years the Gross Margin of NEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.23% | ||
| PM (TTM) | 5.29% | ||
| GM | 13.03% |
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
- NEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- NEX has about the same amout of shares outstanding than it did 1 year ago.
- NEX has more shares outstanding than it did 5 years ago.
- NEX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.14 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NEX (2.14) is comparable to the rest of the industry.
- The Debt to FCF ratio of NEX is 3.52, which is a good value as it means it would take NEX, 3.52 years of fcf income to pay off all of its debts.
- NEX has a better Debt to FCF ratio (3.52) than 72.00% of its industry peers.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that NEX has dependencies on debt financing.
- NEX has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: NEX underperforms 82.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.07
WACC8.6%
2.3 Liquidity
- A Current Ratio of 1.28 indicates that NEX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.28, NEX is not doing good in the industry: 61.33% of the companies in the same industry are doing better.
- NEX has a Quick Ratio of 1.28. This is a bad value and indicates that NEX is not financially healthy enough and could expect problems in meeting its short term obligations.
- NEX's Quick ratio of 0.96 is in line compared to the rest of the industry. NEX outperforms 57.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 75.70% 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 -24.94% in the last year.
- NEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.88% yearly.
EPS 1Y (TTM)75.7%
EPS 3Y5.94%
EPS 5Y17.66%
EPS Q2Q%95.87%
Revenue 1Y (TTM)-24.94%
Revenue growth 3Y5.04%
Revenue growth 5Y4.88%
Sales Q2Q%11.17%
3.2 Future
- NEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
- NEX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.55% yearly.
EPS Next Y16.4%
EPS Next 2Y6.29%
EPS Next 3Y9.22%
EPS Next 5Y10.34%
Revenue Next Year-0.05%
Revenue Next 2Y0.08%
Revenue Next 3Y1.46%
Revenue Next 5Y-0.55%
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.
- 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 reasonably with a Price/Earnings ratio of 11.21.
- Based on the Price/Earnings ratio, NEX is valued cheaper than 93.33% of the companies in the same industry.
- NEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 15.70 indicates a correct valuation of NEX.
- Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than 77.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NEX to the average of the S&P500 Index (25.98), we can say NEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 15.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 89.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 90.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 6.27 |
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 NEX may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)0.63
EPS Next 2Y6.29%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- NEX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
- NEX's Dividend Yield is rather good when compared to the industry average which is at 0.79. NEX pays more dividend than 90.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
- On average, the dividend of NEX grows each year by 46.60%, which is quite nice.
Dividend Growth(5Y)46.6%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 24.11% 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.
DP24.11%
EPS Next 2Y6.29%
EPS Next 3Y9.22%
NEXANS SA / NEX.PA FAQ
What is the fundamental rating for NEX stock?
ChartMill assigns a fundamental rating of 5 / 10 to NEX.PA.
What is the valuation status of NEXANS SA (NEX.PA) stock?
ChartMill assigns a valuation rating of 8 / 10 to NEXANS SA (NEX.PA). This can be considered as Undervalued.
Can you provide the profitability details for NEXANS SA?
NEXANS SA (NEX.PA) has a profitability rating of 7 / 10.
What is the financial health of NEXANS SA (NEX.PA) stock?
The financial health rating of NEXANS SA (NEX.PA) is 3 / 10.
What is the expected EPS growth for NEXANS SA (NEX.PA) stock?
The Earnings per Share (EPS) of NEXANS SA (NEX.PA) is expected to grow by 16.4% in the next year.