NEXANS SA (NEX.PA) Stock Fundamental Analysis
EPA:NEX - Euronext Paris - Matif - FR0000044448 - Common Stock - Currency: EUR
NEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year NEX was profitable.
In the past year NEX had a positive cash flow from operations.
In the past 5 years NEX has always 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 73.21% 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.
Looking at the Return On Invested Capital, with a value of 9.82%, NEX belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEX is above the industry average of 7.80%.
| 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 66.07% of the companies in the same industry.
In the last couple of years the Profit Margin of NEX has grown nicely.
The Operating Margin of NEX (6.61%) is better than 64.29% of its industry peers.
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: 82.14% of the companies in the same industry are doing better.
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
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.
The debt/assets ratio for NEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.02 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 2.02. This is in the better half of the industry: NEX outperforms 67.86% 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.
The Debt to FCF ratio of NEX (4.90) is better than 64.29% 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.
With a Debt to Equity ratio value of 1.05, NEX is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.37
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.20 indicates that NEX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, NEX is not doing good in the industry: 75.00% 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.
Looking at the Quick ratio, with a value of 0.84, NEX is doing worse than 64.29% of the companies in the same 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.
The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
Looking at the last year, NEX shows a very negative growth in Revenue. The Revenue has decreased by -27.57% in the last year.
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
Based on estimates for the next years, NEX will show a small growth in Earnings Per Share. The EPS will grow by 6.93% on average per year.
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 15.48, the valuation of NEX can be described as correct.
82.14% of the companies in the same industry are more expensive than NEX, based on the Price/Earnings ratio.
NEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
NEX is valuated correctly with a Price/Forward Earnings ratio of 14.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEX indicates a somewhat cheap valuation: NEX is cheaper than 66.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, NEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
NEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEX is cheaper than 76.79% of the companies in the same industry.
80.36% of the companies in the same industry are more expensive than NEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 8.35 |
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)2.12
PEG (5Y)0.88
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
NEX has a Yearly Dividend Yield of 2.36%.
Compared to an average industry Dividend Yield of 2.73, NEX pays a better dividend. On top of this NEX pays more dividend than 83.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
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 (7/14/2025, 5:35:15 PM)
111
+0.4 (+0.36%)
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 Cap4.86B
Analysts72
Price Target118.63 (6.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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%
PT rev (3m)-4.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.62%
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 | 15.48 | ||
| Fwd PE | 14.43 | ||
| P/S | 0.57 | ||
| P/FCF | 12.29 | ||
| P/OCF | 6.28 | ||
| P/B | 2.68 | ||
| P/tB | 4.74 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)7.17
EY6.46%
EPS(NY)7.69
Fwd EY6.93%
FCF(TTM)9.03
FCFY8.13%
OCF(TTM)17.67
OCFY15.92%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)2.12
PEG (5Y)0.88
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 | 2.02 |
F-Score6
WACC7.19%
ROIC/WACC1.37
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%