NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NEX. NEX was compared to 56 industry peers in the Electrical Equipment industry. While NEX has a great profitability rating, there are quite some concerns on its financial health. NEX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NEX had positive earnings in the past year.
In the past year NEX had a positive cash flow from operations.
NEX had positive earnings in each of the past 5 years.
In the past 5 years NEX always reported a positive cash flow from operatings.
1.2 Ratios
NEX has a Return On Assets of 3.64%. This is in the better half of the industry: NEX outperforms 69.64% of its industry peers.
NEX's Return On Equity of 15.38% is amongst the best of the industry. NEX outperforms 83.93% of its industry peers.
NEX's Return On Invested Capital of 9.82% is amongst the best of the industry. NEX outperforms 82.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEX is above the industry average of 8.08%.
| 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
With a decent Profit Margin value of 3.26%, NEX is doing good in the industry, outperforming 62.50% of the companies in the same industry.
NEX's Profit Margin has improved in the last couple of years.
NEX's Operating Margin of 6.61% is in line compared to the rest of the industry. NEX outperforms 58.93% 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 82.14% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEX is creating some value.
The number of shares outstanding for NEX remains at a similar level compared to 1 year ago.
The number of shares outstanding for NEX has been increased compared to 5 years ago.
The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
NEX has an Altman-Z score of 1.97. This is not the best score and indicates that NEX is in the grey zone with still only limited risk for bankruptcy at the moment.
NEX's Altman-Z score of 1.97 is fine compared to the rest of the industry. NEX outperforms 66.07% of its industry peers.
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 has a better Debt to FCF ratio (4.90) than 66.07% of its industry peers.
NEX has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEX (1.05) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.97 |
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.
With a Current ratio value of 1.20, NEX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
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.
NEX has a Quick ratio (0.84) which is in line with its industry peers.
| 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.
NEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
Looking at the last year, NEX shows a very negative growth in Revenue. The Revenue has decreased by -27.57% 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)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 6.93% on average over the next years.
NEX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.24% yearly.
EPS Next Y7.3%
EPS Next 2Y10.03%
EPS Next 3Y9.65%
EPS Next 5Y6.93%
Revenue Next Year3.53%
Revenue Next 2Y4.02%
Revenue Next 3Y3.58%
Revenue Next 5Y-2.24%
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
Based on the Price/Earnings ratio of 13.87, the valuation of NEX can be described as correct.
Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 83.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, NEX is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of NEX.
Based on the Price/Forward Earnings ratio, NEX is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. NEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NEX may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)0.79
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.54%, 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 2.58. NEX pays more dividend than 83.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
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 (6/20/2025, 9:05:57 AM)
99.425
+0.67 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.33%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap4.35B
Analysts71.58
Price Target118.63 (19.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend2.34
Dividend Growth(5Y)46.6%
DP36.56%
Div Incr Years6
Div Non Decr Years6
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)-0.11%
PT rev (3m)-3.8%
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%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.51 | ||
| P/FCF | 11.01 | ||
| P/OCF | 5.63 | ||
| P/B | 2.4 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)7.17
EY7.21%
EPS(NY)7.69
Fwd EY7.74%
FCF(TTM)9.03
FCFY9.08%
OCF(TTM)17.67
OCFY17.77%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)1.9
PEG (5Y)0.79
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 | 1.97 |
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 5Y6.93%
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-2.24%
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%