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Nexa Resources (NEXA)
NYSE:NEXA
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Nexa Resources SA
(NYSE:NEXA)
Rating:47Neutral
Price Target:
$5.00
▲(3.95% Upside)
Positive Factors
Growth Prospects
The continued ramp-up of operations at Aripuana to its capacity of over 85ktpa zinc and 2.1Mozpa silver remains the strongest driver of growth in NEXA’s portfolio.
Strategic Expansion
Nexa has reportedly joined those seeking to acquire BHP's copper/gold assets in Brazil, which aligns with their strategy.
Negative Factors
Financial Performance
NEXA had a net unfavorable move in non-cash working capital of $265M, driving net debt to $1.5B and 2.1x net debt to trailing EBITDA.
Operational Challenges
Nexa announced a partial and temporary suspension of operations at Cajamarquilla due to a strike initiated by the operator's labor union.
Production Challenges
Zinc production was down 8% quarter on quarter and 23% year on year, missing estimates and consensus.
Nexa Resources SA (NEXA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$637.03M
Dividend Yield2.17%
Average Volume (3M)32.81K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth12.30%
EPS Growth42.72%
CountryUS
Employees5,760
SectorBasic Materials
Sector Strength57
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.20
Shares Outstanding132,438,610
10 Day Avg. Volume23,046
30 Day Avg. Volume32,810
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.43
Price to Sales (P/S)0.42
P/FCF Ratio12.85
Enterprise Value/Market Cap4.01
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda3.84
Forecast
1Y Price Target
$5.43Price Target Upside12.89% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
Nexa Resources SA Business Overview & Revenue Model
Company DescriptionNexa Resources SA (NEXA) is a leading global mining and metallurgical company with a focus on the production of zinc, copper, and lead. Headquartered in Luxembourg, Nexa operates primarily in Latin America, with significant mining activities in Brazil and Peru. The company is dedicated to sustainable practices and innovation in its extraction and processing methods, serving a diverse range of industries including construction, automotive, and technology.
How the Company Makes MoneyNexa Resources SA generates revenue through the extraction, production, and sale of zinc, copper, and lead concentrates and finished metal products. The company operates multiple mines and smelting facilities, allowing it to efficiently manage the production process from ore extraction to refining and sale. Nexa's key revenue streams include the sale of its metal products to industrial customers around the world, particularly in sectors like construction, manufacturing, and automotive. Additionally, the company benefits from strategic partnerships and long-term contracts with other mining and industrial firms, which help stabilize demand and pricing for its products. Nexa's focus on operational efficiency and sustainability also contributes to its profitability by optimizing production costs and enhancing its market reputation.
Nexa Resources SA Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -0.62%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positives, including strong quarterly financial performance, progress in strategic projects, and improved liquidity. However, significant operational challenges at key assets and increased costs posed concerns. The sentiment remains cautious but optimistic about future improvements.Q2-2025 Updates
Positive Updates
Solid Quarterly Performance
NEXA reported net revenues of $708 million, up 13% compared to the first quarter of 2025, and an adjusted EBITDA of $161 million, a 28% sequential increase. This performance was driven by higher sales volumes and stronger byproduct prices.
Improved Free Cash Flow
Free cash flow was $17 million, an improvement over the previous quarter, supported by better working capital management.
Progress in Cerro Pasco Integration Project
Key milestones in Phase 1 of the Cerro Pasco integration project were achieved, including final engineering, permitting, and contractor mobilization.
Aripuana and Vazante Recovery
Mining segment produced 74,000 tonnes of zinc, up 9% quarter-over-quarter, as Aripuana and Vazante recovered from first-quarter disruptions.
Healthy Liquidity Position
Liquidity stood at approximately $738 million, with an average debt maturity of 7.7 years, following successful liability management efforts.
Negative Updates
Operational Challenges at Aripuana
Aripuana faced increased downtime due to heavy rainfall, impacting tailings filter capacity. This led to revised production and cost guidance.
Vazante Geotechnical Issues
Vazante continued to face limited access to higher-grade zones due to geotechnical challenges, impacting production.
Increased Smelting Costs
Consolidated smelting conversion cost rose to $0.39 per pound, up 19% quarter-over-quarter, due to higher maintenance expenses and input costs.
Decline in Net Revenues Year-Over-Year
Compared to the second quarter of 2024, net revenues declined by 4%, mainly due to lower zinc, copper, and lead prices.
Downgrade in Production Guidance
Full-year production and cost guidance were revised due to operational challenges at Aripuana and Vazante.
Company Guidance
During the second quarter of 2025, NEXA Resources reported net revenues of $708 million, marking a 13% increase from the first quarter. The company also achieved an adjusted EBITDA of $161 million, representing a 28% sequential rise. Zinc production in the Mining segment reached 74,000 tonnes, a 9% increase quarter-over-quarter, while smelting zinc sales totaled 145,000 tonnes, up 12% from the prior quarter. NEXA's free cash flow improved to $17 million, supported by better working capital management. The company's consolidated mining cash cost net of byproducts significantly improved to minus $0.11 per pound, compared to $0.11 per pound in the first quarter. Meanwhile, consolidated smelting conversion costs rose to $0.39 per pound, up 19% quarter-over-quarter. Looking ahead, NEXA revised its full-year production and cost guidance to accommodate first-quarter operational challenges, specifically at Aripuana and Vazante. The company continues to focus on extending debt maturities and enhancing financial flexibility, maintaining a solid liquidity position with approximately $738 million available, including an undrawn $320 million revolving credit facility.Nexa Resources SA Financial Statement Overview
Summary
Nexa Resources SA displays operational efficiency with positive EBIT and EBITDA margins but struggles with profitability and cash flow conversion, indicated by a negative net profit margin and free cash flow challenges. The high leverage position also signals financial risk.Income Statement
Nexa Resources SA shows a mixed income statement performance. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 19.63%, reflecting a reasonable ability to convert revenue into gross profit. However, the company struggles with profitability, as evidenced by a negative net profit margin of -6.02% due to substantial net losses. Revenue growth from the previous year is modest at 1.01%, indicating slight improvement. EBIT and EBITDA margins are positive at 12.93% and 19.64% respectively, suggesting efficient operations despite net losses.72
Positive
Balance Sheet
The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 2.14, pointing to potential financial risk. The company's return on equity (ROE) is negative at -19.34%, aligning with the net losses, which could be concerning for investors. Nonetheless, the equity ratio stands at 18.61%, showing a reasonable proportion of equity financing in total assets.65
Positive
Cash Flow
Cash flow analysis reveals stability in operational cash flow, with an operating cash flow to net income ratio of -1.66, indicating the company generates cash despite net losses. Free cash flow has decreased compared to the previous period, reflecting a need for improved cash management. The free cash flow to net income ratio is -0.25, highlighting challenges in converting earnings to cash.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.79B | 2.77B | 2.57B | 3.03B | 2.62B | 1.95B |
| Gross Profit | 540.20M | 538.07M | 296.48M | 638.81M | 656.07M | 387.00M |
| EBITDA | 666.49M | 608.51M | 190.25M | 686.63M | 716.94M | -290.57M |
| Net Income | -90.72M | -205.03M | -289.35M | 76.39M | 156.09M | -652.51M |
Balance Sheet | ||||||
| Total Assets | 4.87B | 4.64B | 4.84B | 4.89B | 4.90B | 5.06B |
| Cash, Cash Equivalents and Short-Term Investments | 417.69M | 640.23M | 468.32M | 515.89M | 763.02M | 1.12B |
| Total Debt | 1.91B | 1.86B | 1.73B | 1.67B | 1.72B | 2.05B |
| Total Liabilities | 3.73B | 3.58B | 3.38B | 3.18B | 3.26B | 3.44B |
| Stockholders Equity | 889.86M | 813.93M | 1.20B | 1.44B | 1.39B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 33.63M | 90.71M | -66.39M | -120.43M | 7.78M | -31.99M |
| Operating Cash Flow | 291.50M | 349.72M | 246.85M | 266.63M | 492.99M | 291.70M |
| Investing Cash Flow | -217.50M | -237.61M | -270.35M | -378.93M | -469.27M | -369.20M |
| Financing Cash Flow | -128.67M | 61.94M | -25.28M | -149.23M | -344.13M | 451.62M |
Nexa Resources SA Technical Analysis
Negative
4.81
Price Trends
4.89
Negative
5.25
Negative
6.05
Negative
Market Momentum
-0.04
Positive
46.03
Neutral
32.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXA, the sentiment is Negative. The current price of 4.81 is below the 20-day moving average (MA) of 4.90, below the 50-day MA of 4.89, and below the 200-day MA of 6.05, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 32.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEXA.
Nexa Resources SA Risk Analysis
Nexa Resources SA disclosed 49 risk factors in its most recent earnings report. Nexa Resources SA reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nexa Resources SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.76B | 40.96 | 2.55% | 7.60% | -1.97% | ― | |
64 Neutral | $12.11B | ― | -9.62% | ― | 4.63% | -3189.81% | |
52 Neutral | $753.97M | 27.86 | -12.38% | 1.36% | -8.59% | -256.43% | |
47 Neutral | $637.03M | ― | -16.64% | 2.17% | 12.30% | 42.72% | |
47 Neutral | $849.06M | ― | -46.32% | 1.61% | 5.81% | -78.45% | |
44 Neutral | C$863.02M | -6.77 | -14.90% | 2.78% | 16.54% | -27.01% | |
42 Neutral | $2.08B | ― | -667.42% | ― | ― | -3.49% |
* Basic Materials Sector Average
Performance Comparison
NEXA
Nexa Resources SA
4.81
-1.37
-22.17%
CMP
Compass Minerals International
20.40
9.52
87.50%
GSM
Ferroglobe
4.04
-0.32
-7.34%
STR
Sitio Royalties
18.27
-2.54
-12.21%
MP
MP Materials
68.39
57.42
523.43%
TMC
TMC the metals company Inc.
5.18
4.16
407.84%
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.