Nexans (NEX) AI Stock Analysis

• Market Cap: €5.36B
• Dividend Yield: 2.12%
• Average Volume (3M): 149.59K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.07
• Revenue Growth: 12.65%
• EPS Growth: 81.77%
• Country: FR
• Employees: 28,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 43,744,778
• 10 Day Avg. Volume: 221,446
• 30 Day Avg. Volume: 149,595
• PEG Ratio: 0.63
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 5.87
• 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: €137.50
• Price Target Upside: 12.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €135.00 ▲(10.20% Upside)

Nexans' strong financial performance, characterized by robust revenue growth and improved profitability, is the most significant factor driving its score. The valuation metrics suggest the stock is undervalued, providing potential upside. However, technical indicators point to short-term bearish trends, which may pose risks. The absence of earnings call insights and notable corporate events limits additional context.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Debt Elimination

Eliminating debt enhances financial stability and flexibility, allowing for more strategic investments and reducing financial risk.

Cash Flow Strength

Robust cash flow supports ongoing operations, future growth initiatives, and provides a buffer against economic downturns, ensuring business resilience.

Negative Factors

Equity Base Weakness

A weaker equity base can limit financial flexibility and increase vulnerability to market fluctuations, potentially impacting long-term growth.

Profit Margin Pressure

While improved, the relatively low net profit margin suggests potential challenges in maintaining cost efficiency and pricing power in competitive markets.

Equity Ratio Concerns

A low equity ratio may indicate over-reliance on external financing, which could constrain growth and increase financial risk during downturns.

Nexans Business Overview & Revenue Model

Company Description

Nexans S.A. manufactures and sells cables in France and internationally. It operates through four segments: Building & Territories, High Voltage & Projects, Telecom & Data, and Industry & Solutions. The Building & Territories segment provides cabling systems and smart energy solutions for buildings, smart cities/grids, e-mobility, local infrastructures, decentralized energy systems, and rural electrifications. The High Voltage & Projects segment offers design, engineering, financing, asset management, and systems management solutions for offshore wind farms, subsea interconnections, and land high voltage, as well as smart solutions for the oil and gas sector. The Telecom & Data segment helps customers to deploy copper and fiber optic infrastructures, which include data transmission, telecom networks, hyperscale data centers, and LAN cabling solutions. The Industry & Solutions segment provides customized cabling and connectivity solutions to support OEMs and industrial infrastructure project managers in transport, automatic devices, renewable energy, resources, and other sectors. It also offers wire rods, electrical wires, and winding wires. The company was incorporated in 1994 and is headquartered in Courbevoie, France.

How the Company Makes Money

Nexans generates revenue primarily through the sale of its cable products and solutions across multiple sectors. Key revenue streams include the sale of energy cables for utilities and renewable energy projects, telecommunications cables for network infrastructure, and specialized cables for industrial applications. The company benefits from long-term contracts with major utilities and infrastructure projects, which provide stable income. Additionally, Nexans engages in partnerships and collaborations with key industry players, enhancing its market reach and technological capabilities. The focus on high-margin products and solutions, coupled with strategic investments in R&D, allows Nexans to maintain competitiveness and drive profitability.

Nexans Financial Statement Overview

Summary

Nexans exhibits a strong financial profile with impressive revenue growth, robust profit margins, and a healthy cash flow situation. The elimination of debt enhances its financial stability, while improved profitability metrics reflect effective management. The company is well-positioned for future growth, although it could benefit from a stronger equity base to further solidify its financial standing.

Income Statement

Nexans demonstrates strong financial performance with a consistent increase in revenue, evidenced by a 9.72% growth from 2023 to 2024. The gross profit margin has remained robust at around 13.7% in 2024. The net profit margin also improved to 3.26% in 2024, reflecting better cost management and operational efficiency. The EBIT and EBITDA margins have also shown improvement to 6.62% and 7.84% respectively, indicating healthier operational performance.

Balance Sheet

Nexans has a solid balance sheet with no debt reported in 2024, significantly improving its debt position from previous years. The equity ratio stands at 23.63%, indicating a stable capital structure. The return on equity increased to 15.39% in 2024, highlighting effective use of shareholders' equity to generate profits. However, the equity ratio suggests there is room for improvement in strengthening the equity base.

Cash Flow

The free cash flow in 2024 is strong at 775 million, with a growth rate of 139.94% from 2023. The operating cash flow to net income ratio is 2.78, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is also strong at 2.78, signifying efficient cash flow management. Overall, the cash flow position is robust, supporting further growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.02B	8.55B	7.79B	8.37B	7.37B	5.98B
Gross Profit	1.19B	1.17B	995.00M	996.00M	781.00M	655.00M
EBITDA	736.00M	667.00M	528.00M	554.00M	421.00M	391.00M
Net Income	478.00M	279.00M	221.00M	245.00M	164.00M	78.00M
Balance Sheet
Total Assets	8.11B	7.67B	6.54B	6.40B	5.59B	5.23B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.25B	1.13B	1.13B	972.00M	1.14B
Total Debt	2.09B	1.93B	1.34B	1.32B	1.05B	1.32B
Total Liabilities	6.20B	5.84B	4.83B	4.74B	4.12B	3.97B
Stockholders Equity	1.89B	1.81B	1.70B	1.65B	1.45B	1.22B
Cash Flow
Free Cash Flow	586.00M	775.00M	323.00M	246.00M	195.00M	231.00M
Operating Cash Flow	933.00M	775.00M	700.00M	544.00M	401.00M	456.00M
Investing Cash Flow	287.00M	-903.00M	-440.00M	-429.00M	-183.00M	-99.00M
Financing Cash Flow	-159.00M	278.00M	-215.00M	113.00M	-417.00M	169.00M

Nexans Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:NEX, the sentiment is Negative. The current price of 122.5 is below the 20-day moving average (MA) of 125.04, below the 50-day MA of 122.89, and above the 200-day MA of 113.37, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 41.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:NEX.

Nexans Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELEC	81 Outperform	€1.33B	8.53	―	5.95%	-12.83%	10.40%
NEX	73 Outperform	€5.36B	11.19	25.83%	2.12%	12.65%	81.77%
VIE	71 Outperform	€21.16B	19.47	15.69%	4.77%	-0.31%	1.28%
LR	70 Outperform	€32.89B	26.90	17.50%	1.75%	12.62%	17.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHP	62 Neutral	€547.59M	12.54	12.51%	1.71%	14.77%	33.13%
VLTSA	59 Neutral	€937.76M	-20.85	-3.36%	―	1.76%	-234.79%