Nexans S.A.
Nexans S.A. Fundamental Analysis
Nexans S.A. (NEX.PA) shows moderate financial fundamentals with a PE ratio of 24.52, profit margin of 2.73%, and ROE of 10.96%. The company generates $7.7B in annual revenue with moderate year-over-year growth of 9.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NEX.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakNEX.PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNEX.PA trades at attractive valuation levels.
Growth Score
ExcellentNEX.PA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNEX.PA maintains a strong and stable balance sheet.
Profitability Score
WeakNEX.PA struggles to sustain strong margins.
Key Financial Metrics
Is NEX.PA Expensive or Cheap?
P/E Ratio
NEX.PA trades at 24.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NEX.PA's PEG of -0.94 indicates potential undervaluation.
Price to Book
The market values Nexans S.A. at 2.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.94 times EBITDA. This is generally considered low.
How Well Does NEX.PA Make Money?
Net Profit Margin
For every $100 in sales, Nexans S.A. keeps $2.73 as profit after all expenses.
Operating Margin
Core operations generate 4.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.96 in profit for every $100 of shareholder equity.
ROA
Nexans S.A. generates $2.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nexans S.A. produces operating cash flow of $830.11M, showing steady but balanced cash generation.
Free Cash Flow
Nexans S.A. produces free cash flow of $452.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.37 in free cash annually.
FCF Yield
NEX.PA converts 8.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How NEX.PA Stacks Against Its Sector Peers
| Metric | NEX.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.52 | 25.85 | Neutral |
| ROE | 10.96% | 1270.00% | Weak |
| Net Margin | 2.73% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.95 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.22 | 10.04 | Neutral |
| ROA | 2.65% | -1493983.00% (disorted) | Weak |
NEX.PA outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nexans S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
337.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
156.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth