NEXANS SA (NXS.DE) Stock Fundamental Analysis
FRA:NXS - Deutsche Boerse Ag - FR0000044448 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NXS. NXS was compared to 56 industry peers in the Electrical Equipment industry. NXS scores excellent on profitability, but there are concerns on its financial health. NXS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NXS had positive earnings in the past year.
NXS had a positive operating cash flow in the past year.
NXS had positive earnings in each of the past 5 years.
Each year in the past 5 years NXS had a positive operating cash flow.
1.2 Ratios
NXS has a better Return On Assets (3.64%) than 67.86% of its industry peers.
NXS's Return On Equity of 15.38% is amongst the best of the industry. NXS outperforms 82.14% of its industry peers.
NXS's Return On Invested Capital of 9.82% is amongst the best of the industry. NXS outperforms 80.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXS 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%, NXS is doing good in the industry, outperforming 60.71% of the companies in the same industry.
NXS's Profit Margin has improved in the last couple of years.
The Operating Margin of NXS (6.61%) is comparable to the rest of the industry.
NXS's Operating Margin has improved in the last couple of years.
NXS's Gross Margin of 13.73% is on the low side compared to the rest of the industry. NXS is outperformed by 83.93% of its industry peers.
NXS'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
NXS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NXS has about the same amount of shares outstanding.
NXS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NXS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that NXS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NXS's Altman-Z score of 1.99 is fine compared to the rest of the industry. NXS outperforms 67.86% of its industry peers.
NXS has a debt to FCF ratio of 4.90. This is a neutral value as NXS would need 4.90 years to pay back of all of its debts.
NXS has a Debt to FCF ratio of 4.90. This is in the better half of the industry: NXS outperforms 64.29% of its industry peers.
NXS 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 NXS (1.05) is worse than 83.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.35
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.20 indicates that NXS should not have too much problems paying its short term obligations.
The Current ratio of NXS (1.20) is worse than 73.21% of its industry peers.
NXS has a Quick Ratio of 1.20. This is a bad value and indicates that NXS is not financially healthy enough and could expect problems in meeting its short term obligations.
NXS has a worse Quick ratio (0.84) than 60.71% of 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.
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, NXS shows a very negative growth in Revenue. The Revenue has decreased by -27.57% in the last year.
The Revenue has been growing slightly by 4.88% on average over the past years.
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, NXS will show a small growth in Earnings Per Share. The EPS will grow by 6.93% on average per year.
The Revenue is expected to decrease by -2.24% on average over the next years.
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
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
The Price/Earnings ratio is 14.28, which indicates a correct valuation of NXS.
Compared to the rest of the industry, the Price/Earnings ratio of NXS indicates a rather cheap valuation: NXS is cheaper than 82.14% of the companies listed in the same industry.
NXS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.31 indicates a correct valuation of NXS.
Based on the Price/Forward Earnings ratio, NXS is valued a bit cheaper than 69.64% of the companies in the same industry.
NXS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
NXS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXS is cheaper than 73.21% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXS indicates a rather cheap valuation: NXS is cheaper than 80.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NXS does not grow enough to justify the current Price/Earnings ratio.
NXS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.81
EPS Next 2Y10.03%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
NXS has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
NXS's Dividend Yield is rather good when compared to the industry average which is at 2.58. NXS pays more dividend than 85.71% of the companies in the same industry.
NXS's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of NXS is nicely growing with an annual growth rate of 46.60%!
Dividend Growth(5Y)46.6%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
36.56% of the earnings are spent on dividend by NXS. This is a low number and sustainable payout ratio.
NXS'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%
FRA:NXS (6/16/2025, 7:00:00 PM)
102.4
+1.9 (+1.89%)
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 Cap4.48B
Analysts71.58
Price Target118.75 (15.97%)
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 Years3
Div Non Decr Years3
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)-0.22%
PT rev (3m)-2.25%
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 | 14.28 | ||
| Fwd PE | 13.31 | ||
| P/S | 0.52 | ||
| P/FCF | 11.34 | ||
| P/OCF | 5.8 | ||
| P/B | 2.47 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)7.17
EY7%
EPS(NY)7.69
Fwd EY7.51%
FCF(TTM)9.03
FCFY8.82%
OCF(TTM)17.67
OCFY17.25%
SpS195.34
BVpS41.46
TBVpS23.41
PEG (NY)1.96
PEG (5Y)0.81
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 | 1.99 |
F-Score6
WACC7.26%
ROIC/WACC1.35
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%