Nexus Infrastructure Plc (NEXS) AI Stock Analysis

• Market Cap: £10.62M
• Dividend Yield: 2.47%
• Average Volume (3M): 7.79K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -3.17%
• EPS Growth: 69.15%
• Country: UK
• Employees: 248
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.21
• Shares Outstanding: 9,034,307
• 10 Day Avg. Volume: 12,640
• 30 Day Avg. Volume: 7,792
• PEG Ratio: 0.04
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -12.38
• 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: 48 Neutral
• Price Target: 141.00p ▲(20.00% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and profitability, and liquidity concerns. Technical analysis provides some positive momentum, but valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events does not influence the score.

Positive Factors

Strategic Partnerships

These partnerships can drive innovation and efficiency, expanding Nexus's service offerings and competitive position in the infrastructure sector.

Revenue Streams

Steady income from existing infrastructure ensures a reliable revenue stream, supporting financial stability and long-term growth.

Public-Private Partnerships

PPPs can provide stable funding and reduce financial risk, enhancing Nexus's ability to undertake large-scale infrastructure projects.

Negative Factors

Revenue Decline

Declining revenues indicate potential market share loss or reduced demand, impacting long-term growth and profitability.

Negative Cash Flow

Negative cash flow suggests liquidity issues, limiting Nexus's ability to invest in growth opportunities and meet financial obligations.

Profitability Challenges

Ongoing profitability challenges can hinder Nexus's ability to reinvest in the business and compete effectively in the market.

Nexus Infrastructure Plc Business Overview & Revenue Model

Company Description

Nexus Infrastructure plc provides specialized infrastructure and civil engineering services to the housebuilding and commercial sectors in the United Kingdom. It operates through three segments: Tamdown, TriConnex, and eSmart Networks. The company undertakes earthworks; builds highways, substructures, and basements; and installs drainage systems, as well as engages in high-rise construction activities. It also designs, installs, and connects gas, electricity, water, and fiber networks for residential developments; provides public electric vehicle charging infrastructure, industrial electrification, connections to renewable energy sources. The company was formerly known as Garbol plc and changed its name to Nexus Infrastructure plc in June 2016. Nexus Infrastructure plc was founded in 1976 and is headquartered in Braintree, the United Kingdom.

How the Company Makes Money

Nexus Infrastructure generates revenue through several key streams, primarily from the provision of infrastructure services and project management. The company undertakes large-scale contracts with governmental and private sector clients, focusing on utility infrastructure, including water, gas, and electricity networks. Additionally, Nexus may engage in public-private partnerships (PPPs), collaborating with local authorities and other stakeholders to finance and deliver infrastructure projects. Revenue is further bolstered through maintenance contracts and ongoing service agreements with clients, ensuring a steady income from existing infrastructure. Strategic partnerships with technology providers and construction firms also enhance its capabilities and market reach, contributing to overall earnings.

Nexus Infrastructure Plc Financial Statement Overview

Summary

Nexus Infrastructure Plc faces substantial challenges across all financial verticals, from declining revenues and profitability to liquidity concerns. The company needs to address its operational inefficiencies and stabilize its financial position to improve future performance.

Income Statement

Nexus Infrastructure Plc has experienced significant revenue decline from 2019 to 2024, with a drop from £155 million to £56.7 million. The gross profit margin has decreased, and the company reported negative EBIT and net income in the latest year, indicating operational challenges. Despite a temporary revenue increase in 2022, overall profitability metrics remain concerning.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has improved slightly over the years. However, the equity ratio has weakened, reflecting reduced stability. The company maintains a positive cash position, but the drop in total assets from 2022 to 2024 is a concern.

Cash Flow

Cash flow analysis reveals negative free cash flow across most years, indicating potential liquidity issues. Operating cash flow has been negative recently, and the free cash flow to net income ratio shows inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.49M	56.71M	88.69M	98.39M	77.32M	125.73M
Gross Profit	8.73M	7.66M	5.97M	9.91M	5.99M	16.75M
EBITDA	-368.00K	553.00K	-5.60M	1.25M	-198.00K	-511.00K
Net Income	-3.19M	-2.76M	58.80M	2.71M	2.98M	-2.37M
Balance Sheet
Total Assets	53.41M	55.00M	60.76M	121.03M	113.71M	102.80M
Cash, Cash Equivalents and Short-Term Investments	9.60M	12.80M	14.63M	4.60M	29.52M	32.12M
Total Debt	11.79M	11.17M	11.64M	12.46M	14.03M	12.90M
Total Liabilities	25.29M	25.02M	27.75M	86.89M	81.58M	74.00M
Stockholders Equity	28.12M	29.98M	33.01M	34.14M	32.13M	28.80M
Cash Flow
Free Cash Flow	5.34M	-1.02M	-9.46M	-3.99M	-4.94M	-6.86M
Operating Cash Flow	6.68M	-221.00K	-7.62M	-3.19M	2.74M	-383.00K
Investing Cash Flow	-5.93M	-137.00K	60.18M	12.76M	-5.78M	-6.00M
Financing Cash Flow	-451.00K	-1.47M	-62.10M	-14.92M	437.00K	11.14M

Nexus Infrastructure Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NEXS, the sentiment is Negative. The current price of 117.5 is below the 20-day moving average (MA) of 119.05, below the 50-day MA of 126.20, and below the 200-day MA of 144.01, indicating a bearish trend. The MACD of -2.43 indicates Negative momentum. The RSI at 9.01 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NEXS.

Nexus Infrastructure Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	70 Neutral	£49.03M	8.11	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£51.44M	10.14	3.98%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£40.03M	21.51	5.90%	3.29%	-6.46%	-56.20%
NEXS	48 Neutral	£10.62M	-3.33	-10.69%	2.47%	-3.17%	69.15%
TGP	48 Neutral	£16.05M	-2.27	-25.08%	―	-24.64%	39.47%

Nexus Infrastructure Plc Corporate Events

Nexus Infrastructure Reports Revenue Growth and Strategic Progress in FY25

Nexus Infrastructure Plc reported a 16% increase in revenue to £65.9m for FY25, with significant growth in Tamdown’s order book despite challenges in the housebuilding sector. The integration of Coleman has positively impacted margins, and the company expects reduced losses before tax. The outlook for the housebuilding sector remains uncertain, but government initiatives and the upcoming AMP8 programme in the water sector present growth opportunities.

The most recent analyst rating on (GB:NEXS) stock is a Hold with a £154.00 price target. To see the full list of analyst forecasts on Nexus Infrastructure Plc stock, see the GB:NEXS Stock Forecast page.