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 53 industry peers in the Electrical Equipment industry. NEX scores excellent on profitability, but there are concerns on its financial health. NEX 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 NEX was profitable.
In the past year NEX had a positive cash flow from operations.
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 Return On Assets of 3.64%. This is in the better half of the industry: NEX outperforms 66.67% of its industry peers.
NEX has a Return On Equity of 15.38%. This is amongst the best in the industry. NEX outperforms 85.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.82%, NEX is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
NEX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is above the industry average of 8.21%.
| 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 66.67% of its industry peers.
In the last couple of years the Profit Margin of NEX has grown nicely.
NEX has a Operating Margin (6.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NEX has grown nicely.
With a Gross Margin value of 13.73%, NEX is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
NEX'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 NEX is still creating some value.
NEX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEX has more shares outstanding
The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that NEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
NEX has a Altman-Z score of 1.96. This is in the better half of the industry: NEX outperforms 61.11% of its industry peers.
NEX has a debt to FCF ratio of 4.90. This is a neutral value as NEX would need 4.90 years to pay back of all of its debts.
NEX has a Debt to FCF ratio of 4.90. This is in the better half of the industry: NEX outperforms 61.11% 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 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.36
WACC7.22%
2.3 Liquidity
NEX has a Current Ratio of 1.20. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.20, NEX is doing worse than 70.37% of the companies in the same industry.
NEX has a Quick Ratio of 1.20. This is a bad value and indicates that NEX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, NEX 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 | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.68%, which is quite impressive.
NEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
The Revenue for NEX has decreased by -27.57% in the past year. This is quite bad
Measured over the past years, NEX shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
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
NEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.55% yearly.
Based on estimates for the next years, NEX will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y8.55%
Revenue Next Year4.15%
Revenue Next 2Y4.52%
Revenue Next 3Y4.86%
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.
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
NEX is valuated correctly with a Price/Earnings ratio of 13.66.
83.33% of the companies in the same industry are more expensive than NEX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (28.18), we can say NEX is valued rather cheaply.
The Price/Forward Earnings ratio is 12.73, which indicates a correct valuation of NEX.
72.22% of the companies in the same industry are more expensive than NEX, based on the Price/Forward Earnings ratio.
NEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEX indicates a somewhat cheap valuation: NEX is cheaper than 74.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 81.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)0.77
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.70%.
NEX's Dividend Yield is rather good when compared to the industry average which is at 2.77. NEX pays more dividend than 85.19% of the companies in the same industry.
NEX's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
NEX pays out 36.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of NEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.56%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPA:NEX (5/5/2025, 9:37:23 AM)
97.95
+0.2 (+0.2%)
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 Cap4.29B
Analysts71.58
Price Target121.22 (23.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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)-1.94%
PT rev (3m)-0.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.62%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.58%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.73 | ||
| P/S | 0.5 | ||
| P/FCF | 10.85 | ||
| P/OCF | 5.54 | ||
| P/B | 2.36 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)7.17
EY7.32%
EPS(NY)7.69
Fwd EY7.85%
FCF(TTM)9.03
FCFY9.22%
OCF(TTM)17.67
OCFY18.04%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)1.87
PEG (5Y)0.77
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 | 1.96 |
F-Score6
WACC7.22%
ROIC/WACC1.36
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 Year4.15%
Revenue Next 2Y4.52%
Revenue Next 3Y4.86%
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%