Nexteer Automotive Group (1316) AI Stock Analysis

• Market Cap: $15.94B
• Dividend Yield: 0.21%
• Average Volume (3M): 12.32M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.69
• Revenue Growth: 1.31%
• EPS Growth: 67.13%
• Country: HK
• Employees: 12,600
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 2,509,824,200
• 10 Day Avg. Volume: 11,940,060
• 30 Day Avg. Volume: 12,324,400
• PEG Ratio: -0.55
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.47
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $6.83
• Price Target Upside: 8.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: HK$7.50 ▲(19.43%Upside)

Nexteer Automotive Group's stock is rated favorably due to strong financial performance and robust earnings call highlights, reflecting strategic growth initiatives and effective risk management. While the technical indicators suggest bullish momentum, caution is advised due to potential overbought conditions. The stock's valuation is a concern, as it appears overvalued relative to industry benchmarks.

Positive Factors

Innovative Product Launch

Nexteer is set to mass produce its Steer-by-Wire products, which will serve as a new revenue driver, with positive momentum in industry adoption.

Market Growth in China

New bookings from Chinese automakers reached a new high of 39%, surpassing the previous year's 28%, indicating strong demand in China.

Positive Analyst Outlook

Analyst recommends maintaining a BUY rating on Nexteer due to growing China franchise and Steer-by-Wire tailwinds, with a higher target price amid improving outlook and emerging SbW leadership.

Negative Factors

Global Sales and Tariff Challenges

Weaker global auto sales and potentially higher US tariffs may slow growth at Nexteer’s US operations.

Muted Financial Outlook

The FY25F new bookings guidance of USD5bn is down 17% year-over-year, indicating a muted outlook.

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 design, manufacture, and sale of steering and driveline products to automotive OEMs. The company has established long-term contracts and partnerships with major automotive manufacturers, which serve as key revenue streams. Nexteer's revenue model is heavily reliant on its ability to innovate and provide technologically advanced solutions that meet the safety, performance, and efficiency demands of its clients. Additionally, Nexteer's global manufacturing footprint allows it to serve a diverse customer base while optimizing operational costs, contributing to its overall profitability.

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

Nexteer Automotive Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.28
• 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 HK:1316, the sentiment is Positive. The current price of 6.28 is above the 20-day moving average (MA) of 5.92, above the 50-day MA of 5.76, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1316.

Nexteer Automotive Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1316	78 Outperform	$15.94B	33.09	3.13%	0.21%	1.31%	67.13%
Sector *	62 Neutral	C$5.29B	8.34	20.23%	3.14%	3.09%	8.49%
JELCF	―	$2.94B	9.47	10.07%	2.88%	―	―
MNTHF	―	$4.02B	7.41	11.97%	1.39%	―	―
W4K1	―	€1.09B	23.01	9.28%	0.19%	―	―
2025	67 Neutral	HK$3.44B	162.60	1.95%	0.13%	30.75%	63.75%
1760	60 Neutral	HK$1.68B	7.02	8.65%	2.94%	13.37%	-35.53%

Nexteer Automotive Group Corporate Events

Nexteer Automotive Announces AGM Results and Director Changes

Nexteer Automotive Group Limited announced the results of its Annual General Meeting held on June 18, 2025, where all proposed resolutions were approved by shareholders. Key outcomes included the adoption of the company’s financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as auditors. These decisions are expected to reinforce the company’s governance and operational stability, potentially impacting its market position and stakeholder confidence positively.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Declares Final Dividend for 2024

Nexteer Automotive Group Limited has announced a final cash dividend of USD 0.0087 per share for the financial year ending December 31, 2024. The dividend, payable in Hong Kong dollars at HKD 0.068 per share, will be distributed on July 9, 2025, following shareholder approval on June 18, 2025. This announcement reflects Nexteer’s commitment to returning value to its shareholders and may influence investor perceptions and market positioning.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Updates Board Composition

Nexteer Automotive Group has announced the composition of its board of directors, detailing the roles and functions of each member. This update reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its strategic direction and operational efficiency.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces 2025 Annual General Meeting and Key Resolutions

Nexteer Automotive Group Limited has announced its Annual General Meeting scheduled for June 18, 2025, in Hong Kong. Key resolutions include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. The meeting will also consider authorizing the board to allot and issue additional shares, reflecting the company’s strategic focus on growth and shareholder value.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.