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Nexi S.p.A. (IT:NEXI)
:NEXI
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Nexi S.p.A.
(NEXI)
69Neutral
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. S&P 500 (SPY)
Market Cap
€6.59B
Dividend YieldN/A
Average Volume (3M)6.22M
Price to Earnings (P/E)40.1
Beta (1Y)1.03
Revenue Growth23.33%
EPS GrowthN/A
CountryIT
Employees8,609
SectorTechnology
Sector Strength65
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,230,192,300
10 Day Avg. Volume5,098,269
30 Day Avg. Volume6,217,312
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio13.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€7.41Price Target Upside33.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Nexi S.p.A. Business Overview & Revenue Model
Company DescriptionNexi S.p.A. is a leading Italian company in the digital payments sector, providing a range of services and solutions to facilitate electronic transactions across various platforms. The company operates in three primary sectors: Merchant Services & Solutions, Cards & Digital Payments, and Digital Banking Solutions. Nexi's core products include payment processing services, card issuing and acquiring, point-of-sale (POS) systems, and online payment gateways, catering to both businesses and financial institutions.
How the Company Makes MoneyNexi S.p.A. generates revenue through a diversified model primarily focused on transaction fees, service charges, and subscription fees. Its key revenue streams include fees from merchants for payment processing services, which are charged either as a percentage of transaction value or as a fixed fee per transaction. Additionally, Nexi earns from issuing and acquiring card services, where it collects interchange fees. The company also offers value-added services such as fraud management, analytics, and loyalty programs, which provide additional income. Partnerships with banks and financial institutions play a significant role in extending Nexi's reach in the digital payments ecosystem, enhancing its market presence and contributing to its earnings.
Nexi S.p.A. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| 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 | EBIT |
| 408.70M | 769.57M | 439.65M | 126.94M | 246.54M | EBITDA |
| 2.27B | 1.37B | 1.31B | 615.77M | 473.09M | Net Income Common Stockholders |
| 167.36M | -1.03B | 140.02M | 37.73M | 127.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 74.67M | 2.69B | 448.78M | 1.55B | 159.08M | Total Assets |
| 24.50B | 26.35B | 25.48B | 25.21B | 6.29B | Total Debt |
| 7.95B | 7.21B | 7.67B | 8.28B | 3.51B | Net Debt |
| 7.87B | 6.41B | 7.22B | 6.73B | 3.35B | Total Liabilities |
| 13.54B | 15.05B | 13.24B | 12.90B | 4.73B | Stockholders Equity |
| 10.93B | 11.27B | 12.22B | 12.30B | 1.55B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 772.98M | 558.39M | -47.29M | 169.40M | Operating Cash Flow |
| 0.00 | 902.42M | 1.09B | 234.37M | 304.60M | Investing Cash Flow |
| 0.00 | -1.52B | -1.94B | -439.61M | -1.20B | Financing Cash Flow |
| 0.00 | 88.81M | -240.24M | 1.59B | 941.17M |
Nexi S.p.A. Technical Analysis
Positive
5.54
Price Trends
5.04
Positive
5.01
Positive
5.44
Positive
Market Momentum
0.16
Negative
67.26
Neutral
81.36
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 5.54 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 5.04, and above the 200-day MA of 5.44, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 67.26 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 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 (60)
Financial Indicators
Performance Comparison
IT:NEXI
Nexi S.p.A.
5.54
-0.84
-13.17%
IT:ISP
Intesa Sanpaolo SpA
4.89
1.49
43.79%
IT:BMED
Banca Mediolanum SpA
14.29
4.24
42.19%
Nexi S.p.A. Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 3.17%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Nexi demonstrated strong financial performance with revenue and EBITDA growth, strategic partnerships, and effective cost management. However, macroeconomic uncertainties and historical banking impacts present challenges. The company's investment-grade status and shareholder return plans are positive indicators.Q1-2025 Updates
Positive Updates
Profitable Growth and Revenue Increase
Nexi reported a revenue increase of 3.7% in Q1 2025, with Merchant Solutions up 4.5% despite adverse conditions such as leap year effects and Easter phasing. EBITDA grew by 7.1% with a margin expansion of almost 150 basis points.
Strategic Partnerships and Expansion
Nexi signed a strategic partnership with Planet in the hospitality vertical, targeting large merchants in the Nordics, Italy, and DACH. Direct complementary sales channels in Italy now account for about 30% of total new sales.
Strong Cost Efficiency and Shareholder Returns
Cost grew only 0.8% due to effective cost control and operating leverage. Nexi plans to return €600 million to shareholders in 2025, a 20% increase from last year, including a €300 million dividend and a €300 million share buyback program.
Investment Grade and Financial Structuring
Nexi was upgraded to investment grade by Standard & Poor’s and Fitch. A €2.9 billion financing plan was completed, and an EMTN program was established to optimize the financial structure.
Negative Updates
Impact of Historical Bank Situations
Nexi anticipates gradual visible effects from past bank situations in Italy, impacting the Merchant Services segment, and external pricing pressures affecting Issuing Solutions in other regions.
Macroeconomic and Calendar Challenges
The company faced macroeconomic uncertainties and calendar challenges, such as leap year and Easter phasing, which impacted short-term visibility and volume trends.
Cost Pressures and HR Cost Phasing
While cost efficiency was strong, Nexi anticipates cost pressures due to unwinding of last year's HR rightsizing and inflation impacting non-HR costs.
Company Guidance
During Nexi's First Quarter 2025 results call, the company reported a revenue increase of 3.7% year-on-year, with Merchant Solutions rising by 4.5%. The company achieved a 0.8% growth in costs, reflecting strong cost efficiency controls, while EBITDA increased by 7.1%, leading to an EBITDA margin expansion of approximately 150 basis points. Nexi is set to return €600 million to shareholders in 2025, which is 20% more than the previous year, with a €300 million dividend payment and a €300 million share buyback program commencing. Additionally, the company has been upgraded to investment grade by Standard & Poor’s and Fitch, and completed a €2.9 billion financing plan, enhancing its capital structure. Nexi confirmed its guidance for 2025, projecting low to mid-single-digit revenue growth and an EBITDA margin improvement of at least 50 basis points.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.