Nicolas Correa (NEA) AI Stock Analysis

• Market Cap: €120.93M
• Dividend Yield: 3.33%
• Average Volume (3M): 7.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -1.68%
• EPS Growth: -1.15%
• Country: ES
• Employees: 491
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 12,316,627
• 10 Day Avg. Volume: 5,002
• 30 Day Avg. Volume: 7,846
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.94
• Revenue Forecast (FY): €120.00M

• Rating: 64 Neutral
• Price Target: €10.50 ▲(15.13% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is driven primarily by generally solid fundamentals and a conservative balance sheet, offset by the sharp 2025 revenue decline and weak cash generation (negative free cash flow). Technicals are neutral-to-slightly constructive, while valuation support is mainly from the dividend due to the unusable P/E input.

Positive Factors

Strong Financial Health

The company's robust balance sheet with low leverage and strong cash flow generation supports sustainable growth and operational resilience.

Revenue Growth

Steady revenue growth indicates strong market demand and effective sales strategies, positioning the company well in its industry.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Revenue Decline

A negative revenue growth rate could indicate challenges in maintaining sales momentum, potentially affecting future profitability.

Earnings Decline

Declining earnings per share growth suggests potential profitability issues, which could impact investor confidence and valuation.

Lack of Recent Corporate Events

The absence of significant corporate events may indicate a lack of strategic initiatives or market engagement, potentially affecting growth prospects.

Nicolas Correa Business Overview & Revenue Model

Company Description

Nicolás Correa, S.A. designs, manufactures, and sells milling machines in Spain and internationally. It offers bed type, travelling column, bridge type moving table milling, gantry type, and gantry milling machines; and express delivery machines, as well as machines with a T-shaped configuration. The company also designs and manufactures machine welded and machined structures, enclosures, telescopic guards, and other metal parts for the general industry; and manufactures and installs electrical cabinets and boards for the industrial machinery sector. In addition, it provides applications engineering and after-sales services. The company offers its products for use in aeronautic, automotive, railway, wind energy, capital goods, energy, defense, general machining, and oil and gas applications. Nicolás Correa, S.A. was founded in 1947 and is based in Burgos, Spain.

How the Company Makes Money

Nicolas Correa generates revenue primarily through the sale of its milling machines and related equipment, which are often sold as capital goods to industrial clients. The company also earns money through after-sales services, including maintenance, parts supply, and technical support, which provide a continuous revenue stream beyond the initial sale. Additionally, NEA benefits from strategic partnerships with other technology providers and distributors, enhancing its market reach and sales capabilities. The company's focus on innovation and high-quality manufacturing allows it to command premium pricing for its products, contributing significantly to its profitability.

Nicolas Correa Financial Statement Overview

Summary

Profitability and leverage are strengths (solid margins and low debt-to-equity), but the 2025 downcycle is significant with revenue down ~25% YoY and cash conversion deteriorating as free cash flow turned negative.

Income Statement

Profitability is solid and generally improving over the cycle: net margin is ~10.1% in 2025 (vs ~7.3% in 2021) and operating profitability remains healthy. However, growth turned meaningfully negative in 2025 with revenue down ~25% year over year, and net margin dipped from ~11.3% in 2024 to ~10.1% in 2025. Gross margin also shows notable volatility across years, which adds cyclicality risk for an industrial machinery business.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt-to-equity is ~0.15 in 2025 (still modest even after rising from ~0.06 in 2024). Equity has grown over time and returns on equity remain healthy (~13.0% in 2025), though down from ~16.2% in 2024. Overall financial flexibility appears strong, with leverage not currently a major constraint.

Cash Flow

Cash generation weakened materially in 2025: operating cash flow fell versus 2024 and free cash flow turned negative (-1.0m) after being strongly positive in 2024 (10.5m). Free cash flow also moved from covering a large portion of earnings in 2024 to being negative versus net income in 2025, indicating working-capital or investment drag and reducing near-term financial flexibility despite continued profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	119.39M	119.09M	121.48M	109.86M	98.15M	76.55M
Gross Profit	67.70M	66.10M	37.49M	59.76M	52.60M	41.90M
EBITDA	17.58M	17.54M	18.57M	14.10M	12.54M	9.18M
Net Income	13.04M	12.04M	13.70M	10.54M	9.04M	5.57M
Balance Sheet
Total Assets	144.74M	158.55M	135.63M	137.63M	122.22M	115.09M
Cash, Cash Equivalents and Short-Term Investments	23.17M	26.37M	23.99M	18.86M	21.61M	24.54M
Total Debt	7.36M	13.57M	4.89M	7.90M	10.77M	12.14M
Total Liabilities	57.54M	65.16M	49.98M	62.84M	55.02M	55.11M
Stockholders Equity	86.57M	92.69M	84.48M	73.70M	66.23M	59.55M
Cash Flow
Free Cash Flow	8.29M	-1.04M	10.48M	3.88M	4.78M	13.37M
Operating Cash Flow	14.34M	10.36M	13.70M	8.22M	7.80M	15.76M
Investing Cash Flow	-12.89M	-12.15M	-2.47M	-5.18M	-4.91M	-2.34M
Financing Cash Flow	1.40M	4.28M	-6.11M	-5.75M	-5.82M	-6.31M

Nicolas Correa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:NEA, the sentiment is Positive. The current price of 9.12 is below the 20-day moving average (MA) of 9.99, below the 50-day MA of 9.75, and below the 200-day MA of 10.19, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:NEA.

Nicolas Correa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEA	64 Neutral	€120.93M	―	15.25%	3.33%	-1.68%	-1.15%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%