Nexteer Automotive Group (1316) AI Stock Analysis

• Market Cap: $16.72B
• Dividend Yield: 1.02%
• Average Volume (3M): 9.03M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.68
• Revenue Growth: 4.73%
• EPS Growth: 492.16%
• Country: HK
• Employees: 12,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 2,509,824,200
• 10 Day Avg. Volume: 7,973,400
• 30 Day Avg. Volume: 9,034,957
• PEG Ratio: 0.12
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 6.50
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 4.92
• 1Y Price Target: $9.30
• Price Target Upside: 40.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$8.00 ▲(20.66% Upside)

Nexteer Automotive Group's overall stock score is primarily driven by its strong financial performance, characterized by steady revenue growth, improved profitability, and robust cash flow management. Technical analysis indicates a mixed outlook with positive short-term trends but potential bearish momentum. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Balance sheet strength

Very low leverage and a high equity ratio provide durable financial flexibility: the company can fund R&D, absorb supply-chain or cyclical automotive shocks, and pursue strategic partnerships without heavy refinancing risk, supporting long-term program wins.

Robust cash generation

Strong free cash flow growth and high cash conversion enhance ability to self-fund capex, software and SbW investments, and cushion against industry cyclicality. Durable cash generation supports sustained product development and long-term contract execution.

Strategic role in Steer-by-Wire standards

Active sponsorship and participation in developing China’s SbW standard positions the company as an influential supplier. Regulatory clarity accelerates OEM adoption, increasing odds of long-term design wins as China leads global deployment of software-defined steering.

Negative Factors

Low operating profitability

Relatively low operating margins limit reinvestment capacity and reduce buffers against cost inflation. Sustained low profitability can constrain ability to scale R&D spending or provide attractive returns, making margin improvement essential for long-term competitiveness.

Modest revenue growth

Slow top-line growth suggests limited market-share gains amid industry electrification. If revenue momentum remains modest, it could restrict economies of scale and slow funding for new product programs, potentially hindering long-term competitive positioning.

Low return on equity

A low ROE indicates limited efficiency in converting equity into profits. Over time this can constrain shareholder value creation and signal that management must either improve margins, pursue higher-return contracts, or optimize capital allocation to boost sustainable returns.

Nexteer Automotive Group Business Overview & Revenue Model

Company Description

Nexteer Automotive Group Limited, an investment holding company, designs, develops, manufactures, and distributes steering and driveline systems and components for automobile manufacturers and other automotive-related companies. It offers electric power steering (EPS) products, such as column, pinion, and rack assist, as well as dual pinion EPS; EPS remanufacturing products, intermediate shafts, and modular power packs; and hydraulic power steering products, such as magnetic torque overlay, smart flow pumps, power steering pumps and reservoirs, rack and pinion steering gears, and recirculating ball steering gears, as well as aftermarket products. The company also provides steering columns, including power tilts and telescopes, power rakes and telescopes, one-touch adjustable columns, manual rakes and telescopes, non-adjustable columns, intermediate shafts, transmission shifters, and stowable steering column, as well as electronics, modules, and sub-assemblies. In addition, it offers driveline products comprising front and rear wheel half shafts, intermediate drive shafts, and propeller shaft constant velocity joints. Further, the company provides advanced driver assistance systems and automated driving technologies, which include steer by wire, steering on demand system, quiet wheel steering, magnetic torque overlay, and high availability EPS for resilient operational availability, as well as offers customer support and engineering center services. It operates in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company was founded in 1906 and is headquartered in Auburn Hills, Michigan. Nexteer Automotive Group Limited is a subsidiary of Nexteer Automotive (Hong Kong) Holdings Limited.

How the Company Makes Money

Nexteer Automotive Group generates revenue primarily through the sale of its steering and driveline systems to automotive manufacturers worldwide. The company has established key partnerships with major automakers, which are critical for securing long-term contracts and ongoing projects. Nexteer's revenue model is predominantly based on direct sales of its products, including electric power steering systems, traditional steering solutions, and driveline components. Additionally, the company invests in research and development to create advanced technologies, which can lead to new product offerings and revenue streams. Factors contributing to its earnings include the increasing demand for electric vehicles, advancements in autonomous driving technologies, and a focus on improving vehicle safety and efficiency.

Nexteer Automotive Group Financial Statement Overview

Summary

Nexteer Automotive Group shows positive financial health with steady revenue growth and improved profitability. The balance sheet is strong with low leverage and substantial equity. Cash flow performance is robust, underscoring effective cash management. Nevertheless, there is potential for enhancing operational margins to further strengthen financial performance.

Income Statement

The company has shown consistent revenue growth with a 1.65% increase in 2024 from 2023. Gross profit margins have improved to 11.26%, reflecting better cost management. Net profit margin rose to 1.44%, indicating a slight improvement in profitability. However, EBIT and EBITDA margins are relatively low at 2.68% and 7.06%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is low at 0.05, indicating minimal leverage and a strong equity base. Return on equity stands at 3.12%, showing moderate profitability. The equity ratio is 56.87%, signifying a solid financial structure with more than half of the assets financed by equity.

Cash Flow

There is a robust free cash flow growth of 79.37% from 2023 to 2024. The operating cash flow to net income ratio is strong at 7.23, indicating efficient cash conversion. The free cash flow to net income ratio is 2.67, reflecting healthy cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	4.28B	4.21B	3.84B	3.36B	3.03B
Gross Profit	529.40M	481.42M	368.59M	367.15M	363.43M	407.94M
EBITDA	358.10M	302.05M	357.48M	362.74M	370.10M	348.89M
Net Income	109.50M	61.72M	36.74M	58.01M	118.44M	116.77M
Balance Sheet
Total Assets	3.62B	3.48B	3.40B	3.34B	3.21B	3.31B
Cash, Cash Equivalents and Short-Term Investments	459.22M	422.28M	311.74M	245.93M	326.52M	553.42M
Total Debt	92.27M	91.59M	100.39M	110.71M	146.76M	305.99M
Total Liabilities	1.51B	1.45B	1.39B	1.36B	1.20B	1.38B
Stockholders Equity	2.07B	1.98B	1.96B	1.93B	1.95B	1.88B
Cash Flow
Free Cash Flow	306.36M	164.89M	91.91M	173.41M	145.78M	270.10M
Operating Cash Flow	436.16M	446.23M	404.12M	293.76M	287.38M	419.85M
Investing Cash Flow	-230.79M	-279.79M	-299.15M	-263.47M	-285.66M	-288.00M
Financing Cash Flow	-35.19M	-43.16M	-38.40M	-85.18M	-215.45M	-186.94M

Nexteer Automotive Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.63
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1316, the sentiment is Negative. The current price of 6.63 is below the 20-day moving average (MA) of 7.03, above the 50-day MA of 6.55, and above the 200-day MA of 6.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1316.

Nexteer Automotive Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0425	73 Outperform	HK$43.05B	15.35	12.26%	1.39%	11.06%	22.10%
1316	68 Neutral	$16.72B	19.59	5.45%	1.02%	4.73%	492.16%
1057	65 Neutral	HK$15.23B	22.69	9.59%	1.37%	35.32%	24.24%
1760	64 Neutral	HK$2.05B	11.76	6.62%	3.20%	13.35%	-38.32%
0179	64 Neutral	HK$24.92B	11.99	9.85%	2.03%	-3.02%	11.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2025	61 Neutral	HK$14.62B	601.32	2.26%	0.19%	32.92%	67.96%

Nexteer Automotive Group Corporate Events

Nexteer Automotive Details Board Composition and Governance Committee Roles

Nexteer Automotive Group Limited has announced the current composition of its board of directors, led by Chief Executive Officer and Chairman Ding Fengtao and executive director Robin Zane Milavec, alongside a slate of non-executive and independent non-executive directors. The company has also detailed the structure and membership of its two key board committees—Audit and Compliance, and Remuneration and Nomination—highlighting the roles of independent directors as chairs and members, which underscores Nexteer’s focus on corporate governance, oversight and independent supervision of financial reporting and executive remuneration.
Nexteer’s latest board and committee lineup clarifies the distribution of governance responsibilities across executive, non-executive and independent non-executive directors, aiming to strengthen accountability and regulatory compliance. The prominence of independent directors, including chairmanships of the Audit and Compliance Committee and the Remuneration and Nomination Committee, signals the company’s intent to align with best-practice governance standards, which may provide additional assurance to investors and other stakeholders regarding oversight of risk management, audit functions and leadership succession.

The most recent analyst rating on (HK:1316) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive COO and Executive Director Hervé Boyer to Resign in January 2026

Nexteer Automotive Group has announced the resignation of executive director, senior vice president and global chief operating officer Hervé Paul Gino Boyer, effective January 19, 2026, as he departs to pursue a new opportunity. The company stated that Boyer has no disagreement with the board, with the only outstanding issue relating to his eligibility for payment under the annual incentive plan, which will be resolved through further discussions; the board expressed appreciation for his contributions and confirmed the remaining composition of the executive, non-executive and independent non-executive directors, signaling continuity in overall governance despite the senior management change.

The most recent analyst rating on (HK:1316) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Appoints Hervé Boyer as Executive Director

Nexteer Automotive Group Limited has announced the appointment of Hervé Paul Gino Boyer as an executive director effective November 12, 2025. Boyer, who has extensive experience in the automotive industry, currently serves as the Senior Vice President, Global Chief Operating Officer, and North America Division President. His appointment is expected to further enhance the company’s operational efficiencies and profitability, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:1316) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces Board Composition and Roles

Nexteer Automotive Group Limited has announced the composition of its board of directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit and Compliance Committee and the Remuneration and Nomination Committee. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:1316) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.