Nexans (NEX) AI Stock Analysis

• Market Cap: €5.59B
• Dividend Yield: 2.06%
• Average Volume (3M): 105.27K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.12
• Revenue Growth: 12.65%
• EPS Growth: 81.77%
• Country: FR
• Employees: 28,500
• Sector: Industrials
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.43
• Shares Outstanding: 44,407,623
• 10 Day Avg. Volume: 119,845
• 30 Day Avg. Volume: 105,273
• PEG Ratio: 2.94
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.73
• 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: €125.63
• Price Target Upside: -0.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: €135.00 ▲(7.14%Upside)

Nexans' strong financial performance and positive technical momentum are key strengths driving the overall score. While the financials and technicals are robust, the stock's valuation is moderate, and there are no significant updates from earnings calls or corporate events to further influence the score.

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 through the manufacture and sale of cables and related systems for various industries, including energy, construction, and telecommunications. The company's key revenue streams include sales of power cables used in energy infrastructure and utilities, as well as optical fiber cables for telecommunications. Nexans also offers services such as installation, maintenance, and project management, which contribute to its earnings. Additionally, Nexans engages in strategic partnerships and alliances, particularly in the renewable energy sector, to drive growth and innovation, thereby bolstering its revenue. The company's focus on sustainability and technological advancement plays a significant role in maintaining its competitive edge and financial performance.

Nexans Financial Statement Overview

Summary

Nexans exhibits strong financial performance with significant revenue growth, improved profit margins, and robust cash flow. The elimination of debt enhances financial stability, although the equity base could be strengthened.

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

Nexans Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:NEX, the sentiment is Positive. The current price of 126 is above the 20-day moving average (MA) of 115.77, above the 50-day MA of 107.87, and above the 200-day MA of 101.85, indicating a bullish trend. The MACD of 5.29 indicates Negative momentum. The RSI at 72.62 is Negative, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:NEX.

Nexans Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEX	77 Outperform	€5.59B	11.51	25.83%	2.06%	12.65%	81.77%
Sector *	66 Neutral	£2.71B	11.99	4.22%	3.39%	2.19%	-20.98%
0MW7	―	€33.66B	27.68	17.67%	1.74%	―	―
0OG6	―	€795.65M	22.48	10.11%	1.19%	―	―
0NY8	―	€21.68B	19.78	13.14%	4.65%	―	―
0QW7	―	€948.91M	28.54	-1.80%	―	―	―
ELEC	81 Outperform	€1.10B	7.34		7.14%	-12.83%	10.41%