Nicolas Correa (NEA) AI Stock Analysis

• Market Cap: €121.18M
• Dividend Yield: 3.25%
• Average Volume (3M): 7.85K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.19
• Revenue Growth: -1.68%
• EPS Growth: -1.15%
• Country: ES
• Employees: 491
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.50
• Shares Outstanding: 12,316,627
• 10 Day Avg. Volume: 5,002
• 30 Day Avg. Volume: 7,846
• PEG Ratio: 0.23
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 8.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €11.50 ▲(24.73% Upside)

Nicolas Correa's strong financial performance is the primary driver of its overall stock score, supported by robust profitability, low leverage, and effective cash flow management. The valuation is attractive, with a low P/E ratio and a decent dividend yield, enhancing its appeal. Technical analysis presents a mixed picture, with some short-term weakness but long-term strength. The absence of earnings call data and corporate events does not impact the score.

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

Nicolas Correa exhibits strong financial health across all verticals. The income statement reflects steady growth and strong profitability. The balance sheet is robust with low leverage and efficient equity utilization. Cash flow generation is strong, supporting operational and strategic initiatives. Overall, the company is well-positioned for continued success in the industrial goods sector, with a solid foundation for growth and stability.

Income Statement

Nicolas Correa demonstrates a strong income statement with consistent revenue growth over the years, notably a 10.55% increase from 2023 to 2024, and robust profitability metrics including a gross profit margin of 55.20% and a net profit margin of 11.28% for 2024. The EBIT and EBITDA margins are also solid, indicating efficient operations. The company is on a positive trajectory with growing profitability, positioning it well in the industrial goods sector.

Balance Sheet

The balance sheet of Nicolas Correa reflects a healthy financial position with a debt-to-equity ratio of 0.06, indicating low leverage and reduced financial risk. The equity ratio stands at 62.30%, showcasing strong capitalization. Return on equity is impressive at 16.21% for 2024, demonstrating effective utilization of shareholder equity. The company's balance sheet is stable, although maintaining or improving asset efficiency could further enhance financial robustness.

Cash Flow

Nicolas Correa's cash flow statement highlights strong cash generation capabilities, with a remarkable 170.29% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is nearly 1, indicating cash generation is well-aligned with reported profits. The free cash flow to net income ratio is robust, signifying effective cash management. The company is well-positioned to fund operations and potential growth initiatives without relying heavily on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.39M	121.48M	109.86M	98.15M	76.55M	66.52M
Gross Profit	67.70M	37.49M	59.76M	52.60M	41.90M	37.31M
EBITDA	17.58M	18.57M	14.10M	12.54M	9.18M	8.11M
Net Income	13.04M	13.70M	10.54M	9.04M	5.57M	5.76M
Balance Sheet
Total Assets	144.74M	135.63M	137.63M	122.22M	115.09M	97.14M
Cash, Cash Equivalents and Short-Term Investments	23.17M	23.99M	18.86M	21.61M	24.54M	17.36M
Total Debt	7.36M	4.89M	7.90M	10.77M	12.14M	16.22M
Total Liabilities	57.54M	49.98M	62.84M	55.02M	55.11M	40.10M
Stockholders Equity	86.57M	84.48M	73.70M	66.23M	59.55M	56.30M
Cash Flow
Free Cash Flow	8.29M	10.48M	3.88M	4.78M	13.37M	-354.00K
Operating Cash Flow	14.34M	13.70M	8.22M	7.80M	15.76M	2.51M
Investing Cash Flow	-12.89M	-2.47M	-5.18M	-4.91M	-2.34M	-2.79M
Financing Cash Flow	1.40M	-6.11M	-5.75M	-5.82M	-6.31M	4.90M

Nicolas Correa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 9.22 is below the 20-day moving average (MA) of 9.38, below the 50-day MA of 9.86, and below the 200-day MA of 10.38, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 56.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:NEA.

Nicolas Correa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEA	74 Outperform	€121.18M	9.32	15.92%	3.25%	-1.68%	-1.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%