Nexa Resources S.A. Fundamental Analysis
Nexa Resources S.A. (NEXA) shows moderate financial fundamentals with a PE ratio of 8.11, profit margin of 6.48%, and ROE of 20.95%. The company generates $3.2B in annual revenue with moderate year-over-year growth of 8.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEXA's fundamental strength across five key dimensions:
Efficiency Score
WeakNEXA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNEXA trades at attractive valuation levels.
Growth Score
ModerateNEXA shows steady but slowing expansion.
Financial Health Score
WeakNEXA carries high financial risk with limited liquidity.
Profitability Score
ModerateNEXA maintains healthy but balanced margins.
Key Financial Metrics
Is NEXA Expensive or Cheap?
P/E Ratio
NEXA trades at 8.11 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NEXA's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Nexa Resources S.A. at 1.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.22 times EBITDA. This is generally considered low.
How Well Does NEXA Make Money?
Net Profit Margin
For every $100 in sales, Nexa Resources S.A. keeps $6.48 as profit after all expenses.
Operating Margin
Core operations generate 17.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.95 in profit for every $100 of shareholder equity.
ROA
Nexa Resources S.A. generates $3.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nexa Resources S.A. produces operating cash flow of $543.58M, showing steady but balanced cash generation.
Free Cash Flow
Nexa Resources S.A. produces free cash flow of $151.58M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
NEXA converts 8.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How NEXA Stacks Against Its Sector Peers
| Metric | NEXA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.11 | 25.01 | Better (Cheaper) |
| ROE | 20.95% | 1002.00% | Weak |
| Net Margin | 6.48% | -107149.00% (disorted) | Weak |
| Debt/Equity | 1.63 | 0.38 | Weak (High Leverage) |
| Current Ratio | 0.85 | 6.20 | Weak Liquidity |
| ROA | 3.98% | -5669.00% (disorted) | Weak |
NEXA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nexa Resources S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.47%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
123.72%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
38.44%
Industry Style: Cyclical, Commodity, Value
High Growth