Nicolas Correa (NEA) AI Stock Analysis

• Market Cap: €117.06M
• Dividend Yield: 3.33%
• Average Volume (3M): 7.85K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.11
• 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: -0.73
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -104.56
• 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

Conservative balance sheet and low leverage

Low debt-to-equity (~0.15 in 2025) and a conservatively positioned balance sheet provide durable financial flexibility. This allows the company to fund working capital and selective capex, absorb cyclical revenue swings, and preserve strategic optionality without immediate refinancing pressure.

Solid operating profitability and margins

Sustained net and operating margins around 10% demonstrate structural profitability in core machine-tool operations. Healthy margins support long-term return generation, enable ongoing service investments, and cushion earnings volatility when equipment sales decline.

After-sales and service revenue attached to installed base

A business model that couples capital equipment sales with after-sales service creates recurring revenue streams and higher lifetime customer value. Services and spare parts dampen cyclicality, sustain margins, and provide a steadier, durable cash flow complement to project-based machine sales.

Negative Factors

Sharp revenue downcycle in 2025

A ~25% year-over-year revenue decline represents a meaningful demand shock for a capital-equipment supplier. Prolonged lower sales reduce capacity utilization and pricing leverage, pressure fixed-cost absorption, and can extend recovery timelines for industrial OEMs dependent on cyclical investments.

Weak cash generation and negative free cash flow

Free cash flow swung from +10.5m in 2024 to -1.0m in 2025, indicating working-capital or investment strain. Persistent negative FCF would erode liquidity cushions, limit reinvestment and dividend capacity, and could force external financing during downturns despite modest leverage.

Gross-margin volatility and cyclical exposure

Notable gross-margin swings highlight sensitivity to order mix, utilization and pricing in a cyclical end market. Such structural volatility complicates forecasting and capital allocation, increasing execution risk when management must balance backlogs, pricing and service demand through cycles.

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

Nicolas Correa Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 9.12 is below the 20-day moving average (MA) of 10.00, below the 50-day MA of 9.77, and below the 200-day MA of 10.18, 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 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€117.06M	9.01	15.25%	3.33%	-1.68%	-1.15%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%