NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:NXT - IT0005594418 - Common Stock
12.9 EUR
-0.1 (-0.77%)
Taking everything into account, NXT scores 6 out of 10 in our fundamental rating. NXT was compared to 43 industry peers in the Construction & Engineering industry. NXT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NXT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, NXT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- NXT had positive earnings in the past year.
- In the past year NXT had a positive cash flow from operations.
1.2 Ratios
- With an excellent Return On Assets value of 18.91%, NXT belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.31%, NXT is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
- NXT's Return On Invested Capital of 25.09% is amongst the best of the industry. NXT outperforms 95.35% of its industry peers.
- NXT had an Average Return On Invested Capital over the past 3 years of 30.59%. This is significantly above the industry average of 11.17%.
- The last Return On Invested Capital (25.09%) for NXT is well below the 3 year average (30.59%), which needs to be investigated, but indicates that NXT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.91% | ||
| ROE | 28.31% | ||
| ROIC | 25.09% |
ROA(3y)12.64%
ROA(5y)N/A
ROE(3y)42.15%
ROE(5y)N/A
ROIC(3y)30.59%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of NXT (22.10%) is better than 90.70% of its industry peers.
- The Operating Margin of NXT (24.62%) is better than 95.35% of its industry peers.
- Looking at the Gross Margin, with a value of 54.78%, NXT is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.62% | ||
| PM (TTM) | 22.1% | ||
| GM | 54.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NXT is creating value.
- The number of shares outstanding for NXT remains at a similar level compared to 1 year ago.
- Compared to 1 year ago, NXT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.99 indicates that NXT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of NXT (6.99) is better than 100.00% of its industry peers.
- The Debt to FCF ratio of NXT is 1.15, which is an excellent value as it means it would take NXT, only 1.15 years of fcf income to pay off all of its debts.
- NXT's Debt to FCF ratio of 1.15 is amongst the best of the industry. NXT outperforms 90.70% of its industry peers.
- NXT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- NXT's Debt to Equity ratio of 0.10 is amongst the best of the industry. NXT outperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 6.99 |
ROIC/WACC3.12
WACC8.04%
2.3 Liquidity
- NXT has a Current Ratio of 2.52. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 2.52, NXT belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
- NXT has a Quick Ratio of 2.01. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
- NXT has a better Quick ratio (2.01) than 97.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 47.76% over the past year.
- The Revenue has grown by 277.49% in the past year. This is a very strong growth!
EPS 1Y (TTM)47.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.46%
Revenue 1Y (TTM)277.49%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-45.67%
3.2 Future
- Based on estimates for the next years, NXT will show a very strong growth in Earnings Per Share. The EPS will grow by 25.47% on average per year.
- NXT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.75% yearly.
EPS Next Y22.22%
EPS Next 2Y28.14%
EPS Next 3Y25.47%
EPS Next 5YN/A
Revenue Next Year26.54%
Revenue Next 2Y32.56%
Revenue Next 3Y27.75%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.03, the valuation of NXT can be described as correct.
- 67.44% of the companies in the same industry are more expensive than NXT, based on the Price/Earnings ratio.
- NXT is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- NXT is valuated reasonably with a Price/Forward Earnings ratio of 9.60.
- Based on the Price/Forward Earnings ratio, NXT is valued cheaper than 86.05% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, NXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
- NXT's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.83 | ||
| EV/EBITDA | 8.9 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NXT has a very decent profitability rating, which may justify a higher PE ratio.
- NXT's earnings are expected to grow with 25.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y28.14%
EPS Next 3Y25.47%
5. Dividend
5.1 Amount
- No dividends for NXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NEXT GEOSOLUTIONS EUROPE SPA / NXT.MI FAQ
What is the ChartMill fundamental rating of NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NXT.MI.
What is the valuation status of NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI). This can be considered as Undervalued.
How profitable is NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) stock?
NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) stock?
The Price/Earnings (PE) ratio for NEXT GEOSOLUTIONS EUROPE SPA (NXT.MI) is 13.03 and the Price/Book (PB) ratio is 3.58.