Nueva Expresion Textil, S.A. (NXT) AI Stock Analysis

• Market Cap: €372.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 94.9
• Beta (1Y): 0.34
• Revenue Growth: -12.24%
• EPS Growth: N/A
• Country: ES
• Employees: 16
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 430,705,540
• 10 Day Avg. Volume: 863,588
• 30 Day Avg. Volume: 1,361,145
• PEG Ratio: -0.28
• Price to Book (P/B): -12.08
• Price to Sales (P/S): 4.65
• P/FCF Ratio: -17.43
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €0.98 ▲(4.47% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue, negative equity, and high leverage. However, positive technical indicators provide some optimism, suggesting potential short-term price gains. The high P/E ratio raises concerns about overvaluation, limiting the stock's appeal.

Positive Factors

High gross and EBITDA margins

Strong 2024 margins indicate durable cost control and favorable product economics. A 67.2% gross margin and 48.9% EBITDA margin provide structural operating leverage, helping the company generate operating profitability even with reduced scale and supporting longer-term recovery efforts.

Improving operating cash flow

An improvement to €1.79M in operating cash flow signals better cash generation from core operations, a durable sign of operational stabilization. This reduces near-term dependence on external financing for working capital and gives management runway to address liabilities or reinvest selectively.

Lean operating structure

A very small workforce combined with margin recovery suggests a lean cost base and operational efficiency. Low fixed overhead enhances flexibility during restructuring, enabling faster margin improvements to translate to cash preservation and tactical investments in core strengths.

Negative Factors

Steep revenue decline

A structural drop in revenue to €24.0M from €93.7M erodes scale, market presence, and bargaining power. Persistent top-line contraction weakens fixed-cost absorption, limits reinvestment capacity, and makes it harder to sustain supplier, customer relationships and long-term competitive positioning.

Negative shareholders' equity

Negative equity of -€9.3M indicates balance-sheet distress and potential solvency concerns. This structural weakness restricts access to capital markets, raises refinancing risk and costs, and increases the likelihood of forced restructurings or asset disposals to restore financial stability.

Persistent negative free cash flow

Negative free cash flow of -€6.42M despite improved operating cash flow points to cash consumption after investments or financing outflows. Sustained negative FCF necessitates external funding or asset sales, pressuring liquidity and hindering sustained investment or debt reduction over the medium term.

Nueva Expresion Textil, S.A. Business Overview & Revenue Model

Company Description

Nueva Expresión Textil, S.A. manufactures and sells fabrics and garments. It also offers jacquards, meshes, rib, lurex, stripes, simplex, and spacer fabrics. The company provides luxury garments; sports garments with seamless technology; swimwear; plain and printed intimate and shapewear with a knitted stitch or structure; and medical fabrics that help to delay and prevent medical procedures. The company was formerly known as Dogi International Fabrics, S.A. Nueva Expresión Textil, S.A. was founded in 1954 and is based in Madrid, Spain.

How the Company Makes Money

NXT generates revenue primarily through the sale of its textile products to wholesalers, retailers, and direct consumers. The company has established key revenue streams from bulk fabric sales, custom garment manufacturing, and partnerships with fashion brands looking for sustainable textile solutions. Additionally, NXT benefits from long-term contracts with industrial clients that require specialized textile applications, providing a consistent income. The company's focus on innovation and eco-friendly practices attracts a growing customer base, further contributing to its earnings.

Nueva Expresion Textil, S.A. Financial Statement Overview

Summary

Nueva Expresion Textil, S.A. faces significant financial challenges. Despite some improvement in profitability margins in 2024, the company has a declining revenue trend, negative equity, and high leverage. Negative free cash flow further underscores the need for strategic restructuring.

Income Statement

The company has experienced a significant decline in revenue over the past years, with a revenue decrease from €93.7M in 2019 to €24.0M in 2024. Gross profit margin improved in 2024 to 67.2%, indicating good cost control, but net profit margin remains volatile due to fluctuating net income. The EBIT and EBITDA margins in 2024 were 13.4% and 48.9%, respectively, showing some recovery from previous negative margins.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity of -€9.3M in 2024, indicating possible insolvency issues. The high debt-to-equity ratio is not calculable due to negative equity, but it suggests excessive leverage. The equity ratio is also negative, emphasizing the company's reliance on debt over equity financing.

Cash Flow

Though operating cash flows have improved to €1.79M in 2024, free cash flow remains negative at -€6.42M. The operating cash flow to net income ratio is weak due to low net income, and the free cash flow to net income ratio is also negative, indicating challenges in generating positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.29M	24.04M	38.92M	50.33M	51.34M	58.51M
Gross Profit	5.94M	16.16M	14.64M	19.63M	20.58M	18.32M
EBITDA	3.36M	11.76M	208.00K	2.62M	6.73M	-9.08M
Net Income	3.69M	3.03M	-9.01M	-14.17M	-3.66M	-24.35M
Balance Sheet
Total Assets	64.62M	46.43M	41.19M	53.21M	54.19M	49.41M
Cash, Cash Equivalents and Short-Term Investments	5.71M	782.00K	2.49M	2.80M	5.85M	5.23M
Total Debt	35.12M	11.84M	59.11M	62.94M	62.48M	49.55M
Total Liabilities	51.93M	53.60M	79.15M	84.17M	83.04M	74.24M
Stockholders Equity	12.69M	-9.26M	-38.19M	-30.92M	-28.81M	-24.82M
Cash Flow
Free Cash Flow	-7.41M	-6.42M	-11.04M	-7.01M	-6.97M	-2.25M
Operating Cash Flow	-3.44M	1.79M	-6.45M	1.95M	-4.55M	-635.44K
Investing Cash Flow	-5.17M	-8.21M	672.22K	-8.71M	-2.50M	-1.30M
Financing Cash Flow	13.53M	4.83M	5.48M	3.59M	7.67M	4.94M

Nueva Expresion Textil, S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:NXT, the sentiment is Neutral. The current price of 0.94 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.91, and above the 200-day MA of 0.68, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:NXT.

Nueva Expresion Textil, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NXT	55 Neutral	€372.00M	94.95	―	―	-12.24%	―
ADZ	53 Neutral	€53.01M	58.43	―	―	7.76%	24.40%