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Nexi S.p.A. (IT:NEXI)
:NEXI
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Nexi S.p.A.
(NEXI)
Rating:66Neutral
Price Target:
€5.50
▼(-2.48% Downside)
Positive Factors
Financial Performance
Nexi's Issuing Solutions, which constitutes 33% of the group revenue, exceeded expectations with a 3.8% organic revenue growth, reaching €311m.
Shareholder Returns
Nexi is enhancing shareholder value through its first dividend proposal, yielding 5.4%, and a €300m share buyback programme.
Negative Factors
Growth Challenges
Merchant Solutions is experiencing a slowdown at a faster pace than anticipated.
Guidance Concerns
The 2025 guidance is weak due to the loss of Banco BPM and contract renegotiations, although it aligns with expectations.
Nexi S.p.A. (NEXI) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€6.82B
Dividend Yield4.48%
Average Volume (3M)5.25M
Price to Earnings (P/E)24.6
Beta (1Y)1.07
Revenue Growth3.24%
EPS GrowthN/A
CountryIT
Employees8,609
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.27
Shares Outstanding1,230,192,300
10 Day Avg. Volume4,052,092
30 Day Avg. Volume5,251,966
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€6.98Price Target Upside23.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Nexi S.p.A. Business Overview & Revenue Model
Company DescriptionNexi S.p.A. is a leading digital payments company based in Italy, specializing in the provision of payment services and solutions to businesses and consumers. The company operates primarily in the financial technology sector, offering a wide range of services, including payment processing, digital banking solutions, and e-commerce services. Nexi's core products include card payment systems, point-of-sale (POS) terminals, and online payment solutions, catering to both small and large enterprises across various industries.
How the Company Makes MoneyNexi generates revenue primarily through transaction fees charged to merchants for processing payments, which constitute a significant portion of its income. The company also earns money from subscription fees for its payment solutions and services, including POS equipment and software solutions. Additionally, Nexi benefits from partnerships with banks and financial institutions, allowing it to expand its service offerings and customer reach. Strategic collaborations with e-commerce platforms and other technology providers further enhance its revenue streams by integrating payment solutions into various consumer touchpoints.
Nexi S.p.A. Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q1-2025)
| % Change Since: 8.88%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with notable growth in revenue, cost efficiency, and strategic shareholder returns. However, the company faces some client-related challenges and regional variability, which may impact future margins.Q1-2025 Updates
Positive Updates
Profitable Growth Continued
Revenue increased by 3.7% in Q1 2025. Merchant Solutions grew by 4.5% year-over-year, despite leap year and Easter phasing disadvantages.
Cost Efficiency and EBITDA Margin Expansion
Cost growth was limited to 0.8%, with EBITDA increasing by 7.1% and an EBITDA margin expansion of approximately 150 basis points.
Shareholder Returns and Investment Grade Status
Nexi announced a return of €600 million to shareholders in 2025, a 20% increase from the previous year. The company was upgraded to investment grade by S&P and Fitch.
Strong Market Performance in Germany
Merchant Solutions in Germany grew by 9%, indicating market share gains and a focus on profitable segments.
Negative Updates
Challenges with Discontinued Clients
The company faced initial impacts from the loss of a time banking client, affecting volume growth.
Regional Performance Variability
The Nordics experienced weaker macro conditions, and DACH region was impacted by an issuing client exit, affecting top-line growth.
Potential Margin Pressure
The upcoming quarters are expected to see revenue erosion from bank situations in Italy and Merchant Services, as well as repricing challenges.
Company Guidance
During the first quarter of 2025, Nexi reported a revenue increase of 3.7%, driven by a 4.5% rise in Merchant Solutions compared to the previous year. Despite calendar challenges such as the leap year and Easter phasing, the company maintained strong cost efficiency, with costs growing by only 0.8%. This resulted in a 7.1% increase in EBITDA and an EBITDA margin expansion of nearly 150 basis points. Nexi is also set to return €600 million to shareholders in 2025, 20% more than the previous year, through a €300 million dividend and a €300 million share buyback. Additionally, they have been upgraded to investment grade by both Standard & Poor’s and Fitch, and completed a €2.9 billion financing plan. Nexi reaffirmed their full-year guidance, expecting low to mid-single-digit net revenue growth and at least a 50 basis point improvement in EBITDA margin.Nexi S.p.A. Financial Statement Overview
Summary
Nexi S.p.A. demonstrates robust revenue growth and stable gross profit margins, indicating operational efficiency. However, profitability is hindered by net losses affecting net profit margins. The balance sheet is moderately strong with significant equity, but rising debt levels pose a risk. Cash flow challenges due to zero free cash flow in 2024 need addressing to ensure sustainable growth.Income Statement
Nexi S.p.A. shows a consistent revenue growth trend with a significant increase in total revenue from 2023 to 2024. However, net profit margin is low due to substantial net income losses in 2023, though there is recovery in 2024. Gross profit margin remains stable, indicating efficient cost management, while EBIT and EBITDA margins show fluctuating profitability.65
Positive
Balance Sheet
The company's balance sheet reflects moderate financial stability with a reasonable debt-to-equity ratio, although it has increased slightly from 2023 to 2024. Stockholders' equity remains strong, contributing to a healthy equity ratio. However, total debt levels have risen, posing a potential risk if not managed effectively.70
Positive
Cash Flow
Cash flow statements indicate challenges, particularly with operating and free cash flow showing volatility. Free cash flow was positive in prior years but zero in 2024, which may affect future investments and debt servicing. The lack of operating cash flow in 2024 is concerning and requires attention to improve liquidity management.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.29B | 5.90B | 5.44B | 3.02B | 1.66B |
| Gross Profit | 3.79B | 2.40B | 2.36B | 1.26B | 784.28M |
| EBITDA | 2.27B | 1.37B | 1.31B | 615.77M | 473.09M |
| Net Income | 167.36M | -1.03B | 140.02M | 37.73M | 127.93M |
Balance Sheet | |||||
| Total Assets | 24.50B | 26.35B | 25.55B | 25.21B | 6.29B |
| Cash, Cash Equivalents and Short-Term Investments | 74.67M | 2.69B | 2.00B | 2.98B | 544.73M |
| Total Debt | 7.95B | 7.21B | 6.97B | 7.47B | 2.78B |
| Total Liabilities | 13.54B | 15.05B | 13.30B | 12.90B | 4.73B |
| Stockholders Equity | 10.93B | 11.27B | 12.23B | 12.30B | 1.55B |
Cash Flow | |||||
| Free Cash Flow | 527.05M | 772.98M | 558.39M | -47.29M | 169.40M |
| Operating Cash Flow | 974.03M | 902.42M | 1.09B | 234.37M | 304.60M |
| Investing Cash Flow | -353.86M | -1.52B | -1.94B | -439.61M | -1.20B |
| Financing Cash Flow | -1.35B | 88.81M | -240.24M | 1.59B | 941.17M |
Nexi S.p.A. Technical Analysis
Positive
5.64
Price Trends
5.19
Positive
5.07
Positive
5.00
Positive
Market Momentum
0.11
Negative
67.80
Neutral
83.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:NEXI, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.35, above the 50-day MA of 5.19, and above the 200-day MA of 5.00, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 67.80 is Neutral, neither overbought nor oversold. The STOCH value of 83.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:NEXI.
Nexi S.p.A. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | €6.82B | 24.63 | 4.48% | 3.24% | ― | ||
54 Neutral | $300.99M | 3.85 | -5.40% | 2.70% | 9.25% | -73.59% | |
| ― | €4.62B | 19.43 | 18.54% | 1.38% | ― | ― | |
| ― | €331.78M | ― | -8.20% | ― | ― | ― | |
| ― | €672.31M | 165.18 | 1.04% | ― | ― | ― | |
| ― | €485.44M | 45.23 | 31.22% | ― | ― | ― | |
68 Neutral | €4.41B | 62.42 | ― | 38.31% | -30.40% |
* Technology Sector Average
Performance Comparison
IT:NEXI
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5.56
-0.40
-6.71%
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2.48
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DE:7T4
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26.11%
DE:9PC
WIIT SpA
17.54
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IT:TPRO
Technoprobe S.p.A.
6.76
-0.55
-7.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.