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

• Market Cap: €381.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 86.1
• Beta (1Y): 0.27
• 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: 421,606,720
• 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: €0.93 ▼(-1.28% Downside)

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 & EBITDA margins

Sustained high gross and EBITDA margins reflect meaningful cost control and a favorable product mix. Over 2-6 months these margins provide structural profitability headroom, enabling the firm to cover fixed costs, reinvest in product development, and absorb revenue variability as volumes recover.

Positive operating cash flow

Improved operating cash flow shows the business can convert current sales into cash, a durable sign of operational viability. Even with negative FCF, positive OCF supports working capital, reduces short-term financing needs, and creates a base to fund efficiency programs and stabilization efforts.

Long-term industrial contracts

Established long-term industrial contracts supply predictable baseline revenue and steadier capacity utilization. This structural revenue element lowers volatility, aids planning and creditworthiness, and gives management time to execute turnaround measures without a complete loss of core demand.

Negative Factors

Steep multi-year revenue decline

A severe, persistent revenue contraction over several years signals loss of market share or demand and erodes scale advantages. Reduced top-line undermines fixed-cost absorption and supplier/customer leverage, making it harder to sustain margins and rebuild organic growth without strategic change.

Negative shareholders' equity

Negative equity indicates capital erosion and possible solvency concerns, materially limiting access to new financing and increasing refinancing risk. Over the medium term this constraint hampers strategic flexibility, may trigger creditor actions, and forces reliance on restructuring or asset sales.

Negative free cash flow and high leverage

Persistent negative free cash flow combined with elevated leverage drains liquidity and raises refinancing risk. Structurally, this limits capacity for capex, investments, or margin-supporting initiatives, potentially forcing asset disposals or costly external funding that impairs long-term recovery prospects.

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 and negative equity, posing substantial risks. High leverage and negative free cash flow highlight the need for strategic restructuring to ensure long-term sustainability.

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	5.24M	24.04M	38.92M	50.33M	51.34M	58.51M
Gross Profit	2.29M	16.16M	14.64M	19.63M	20.58M	18.32M
EBITDA	3.42M	11.76M	208.00K	2.62M	6.73M	-9.08M
Net Income	5.85M	3.03M	-9.01M	-14.17M	-3.66M	-24.35M
Balance Sheet
Total Assets	60.64M	46.43M	41.19M	53.21M	54.19M	49.41M
Cash, Cash Equivalents and Short-Term Investments	6.84M	782.00K	2.49M	2.80M	5.85M	5.23M
Total Debt	18.40M	11.84M	59.11M	62.94M	62.48M	49.55M
Total Liabilities	50.31M	53.60M	79.15M	84.17M	83.04M	74.24M
Stockholders Equity	6.26M	-9.26M	-38.19M	-30.92M	-28.81M	-24.82M
Cash Flow
Free Cash Flow	-1.31M	-6.42M	-11.04M	-7.01M	-6.97M	-2.25M
Operating Cash Flow	-2.83M	1.79M	-6.45M	1.95M	-4.55M	-635.44K
Investing Cash Flow	23.00K	-8.21M	672.22K	-8.71M	-2.50M	-1.30M
Financing Cash Flow	9.87M	4.83M	5.48M	3.59M	7.67M	4.94M

Nueva Expresion Textil, S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.81, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€381.00M	86.10	―	―	-12.24%	―
ADZ	53 Neutral	€49.78M	53.86	―	―	7.76%	24.40%