Taking everything into account, NEXA scores 3 out of 10 in our fundamental rating. NEXA was compared to 154 industry peers in the Metals & Mining industry. While NEXA is still in line with the averages on profitability rating, there are concerns on its financial health. NEXA has a valuation in line with the averages, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NEXA has reported negative net income.
NEXA had a positive operating cash flow in the past year.
In multiple years NEXA reported negative net income over the last 5 years.
NEXA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

NEXA has a Return On Assets (-0.31%) which is comparable to the rest of the industry.
NEXA has a Return On Equity (-1.66%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 6.79%, NEXA is doing good in the industry, outperforming 66.88% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-0.31%
ROE	-1.66%
ROIC	6.79%

ROA(3y)-3.12%

ROA(5y)-3.62%

ROE(3y)-15.39%

ROE(5y)-15.7%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

NEXA's Operating Margin of 11.71% is fine compared to the rest of the industry. NEXA outperforms 66.23% of its industry peers.
In the last couple of years the Operating Margin of NEXA has grown nicely.
With a Gross Margin value of 19.34%, NEXA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of NEXA has grown nicely.

		Industry Rank	Sector Rank
OM	11.71%
PM (TTM)	N/A
GM	19.34%

OM growth 3Y-7.88%

OM growth 5Y52.45%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-8.47%

GM growth 5Y3.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEXA is destroying value.
Compared to 1 year ago, NEXA has about the same amount of shares outstanding.
The number of shares outstanding for NEXA remains at a similar level compared to 5 years ago.
Compared to 1 year ago, NEXA has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.69, we must say that NEXA is in the distress zone and has some risk of bankruptcy.
NEXA has a Altman-Z score of 0.69. This is amonst the worse of the industry: NEXA underperforms 85.71% of its industry peers.
NEXA has a debt to FCF ratio of 64.41. This is a negative value and a sign of low solvency as NEXA would need 64.41 years to pay back of all of its debts.
With a Debt to FCF ratio value of 64.41, NEXA perfoms like the industry average, outperforming 55.84% of the companies in the same industry.
A Debt/Equity ratio of 1.84 is on the high side and indicates that NEXA has dependencies on debt financing.
NEXA has a worse Debt to Equity ratio (1.84) than 88.31% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.84
Debt/FCF	64.41
Altman-Z	0.69

ROIC/WACC0.68

WACC9.92%

2.3 Liquidity

A Current Ratio of 0.91 indicates that NEXA may have some problems paying its short term obligations.
With a Current ratio value of 0.91, NEXA is not doing good in the industry: 87.01% of the companies in the same industry are doing better.
NEXA has a Quick Ratio of 0.91. This is a bad value and indicates that NEXA is not financially healthy enough and could expect problems in meeting its short term obligations.
NEXA has a worse Quick ratio (0.60) than 85.06% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.91
Quick Ratio	0.6

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

NEXA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.92%.
NEXA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.22%.
The Revenue has been growing slightly by 3.47% on average over the past years.

EPS 1Y (TTM)-16.92%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-133.33%

Revenue 1Y (TTM)-12.22%

Revenue growth 3Y1.8%

Revenue growth 5Y3.47%

Sales Q2Q%7.62%

3.2 Future

Based on estimates for the next years, NEXA will show a very strong growth in Earnings Per Share. The EPS will grow by 26.90% on average per year.
NEXA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.09% yearly.

EPS Next Y166.19%

EPS Next 2Y78.95%

EPS Next 3Y48.66%

EPS Next 5Y26.9%

Revenue Next Year6.1%

Revenue Next 2Y4.88%

Revenue Next 3Y3.83%

Revenue Next 5Y1.09%

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NEXA. In the last year negative earnings were reported.
NEXA is valuated correctly with a Price/Forward Earnings ratio of 12.26.
Based on the Price/Forward Earnings ratio, NEXA is valued cheaply inside the industry as 83.12% of the companies are valued more expensively.
NEXA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	12.26

4.2 Price Multiples

98.70% of the companies in the same industry are more expensive than NEXA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NEXA is valued a bit cheaper than the industry average as 70.78% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	61.73
EV/EBITDA	5.07

4.3 Compensation for Growth

NEXA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEXA's earnings are expected to grow with 48.66% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y78.95%

EPS Next 3Y48.66%

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5. Dividend

5.1 Amount

With a yearly dividend of 0.76%, NEXA is not a good candidate for dividend investing.
NEXA's Dividend Yield is a higher than the industry average which is at 1.02.
Compared to an average S&P500 Dividend Yield of 1.82, NEXA's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.76%

5.2 History

The dividend of NEXA decreases each year by -32.77%.
NEXA has been paying a dividend for over 5 years, so it has already some track record.

Dividend Growth(5Y)-32.77%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

The earnings of NEXA are negative and hence is the payout ratio. NEXA will probably not be able to sustain this dividend level.

DP-285.8%

EPS Next 2Y78.95%

EPS Next 3Y48.66%

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NEXA RESOURCES SA / NEXA FAQ

What is the ChartMill fundamental rating of NEXA RESOURCES SA (NEXA) stock?

ChartMill assigns a fundamental rating of 3 / 10 to NEXA.

What is the valuation status of NEXA RESOURCES SA (NEXA) stock?

ChartMill assigns a valuation rating of 6 / 10 to NEXA RESOURCES SA (NEXA). This can be considered as Fairly Valued.

How profitable is NEXA RESOURCES SA (NEXA) stock?

NEXA RESOURCES SA (NEXA) has a profitability rating of 4 / 10.

How financially healthy is NEXA RESOURCES SA?

The financial health rating of NEXA RESOURCES SA (NEXA) is 1 / 10.