Nexa Resources SA (NEXA) AI Stock Analysis

• Market Cap: $711.20M
• Dividend Yield: 1.95%
• Average Volume (3M): 55.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 8.66%
• EPS Growth: 66.06%
• Country: US
• Employees: 5,760
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.11
• Shares Outstanding: 132,438,610
• 10 Day Avg. Volume: 77,136
• 30 Day Avg. Volume: 55,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.38
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 3.61
• 1Y Price Target: $5.07
• Price Target Upside: -2.12% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 53 Neutral
• Price Target: $5.00 ▼(-3.47% Downside)

Nexa Resources SA's overall stock score reflects financial challenges, with declining revenues and high leverage being significant concerns. Despite some positive momentum from recent earnings and technical indicators, the company's valuation and operational challenges limit the upside potential.

Positive Factors

Revenue Growth

The sequential revenue growth indicates strong demand for Nexa's products and effective sales strategies, which could enhance market position and profitability over time.

Exploration Success

Successful exploration activities expand Nexa's mineral resource base, supporting future production capabilities and extending mine life, which is crucial for long-term growth.

Improved Financial Flexibility

Extending debt maturities enhances Nexa's financial flexibility, allowing better management of cash flows and investments, which is vital for sustaining operations and growth.

Negative Factors

High Leverage

High leverage can strain Nexa's financial stability, increasing risk during economic downturns and limiting its ability to invest in growth opportunities.

Operational Challenges

Operational challenges at key sites like Aripuana can disrupt production and increase costs, impacting Nexa's ability to meet production targets and maintain profitability.

Increased Smelting Costs

Rising smelting costs can erode profit margins, necessitating cost control measures to sustain financial performance and competitiveness in the long term.

Nexa Resources SA Business Overview & Revenue Model

Company Description

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business. The company also produces zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. It owns and operates five underground polymetallic mines, including three located in the Central Andes of Peru; and two located in the State of Minas Gerais in Brazil. The company also develops the Aripuanã project located in Mato Grosso, Brazil. It exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.

How the Company Makes Money

Nexa Resources generates revenue primarily through the sale of zinc and copper concentrates, along with refined metals. The company's revenue model is based on the extraction and processing of these minerals, which are sold to various industrial customers and traders in the metallurgical sector. Key revenue streams include sales from its mining operations and processing facilities, which convert raw ore into high-quality metal products. Additionally, Nexa benefits from long-term contracts and spot market sales, allowing for diversified revenue sources. The company has also established partnerships and joint ventures that enhance its market reach and operational efficiency, contributing to its overall profitability.

Nexa Resources SA Financial Statement Overview

Summary

Nexa Resources SA is facing financial challenges across its income statement, balance sheet, and cash flow. The company is experiencing declining revenues and profitability, high leverage, and constrained cash flow generation. Strategic initiatives to enhance revenue growth, manage debt levels, and improve cash flow are essential for future stability and growth.

Income Statement

Nexa Resources SA has faced challenges in its income statement, with declining revenue growth and negative net profit margins over the TTM (Trailing-Twelve-Months). The gross profit margin has decreased compared to previous years, indicating pressure on profitability. While the EBIT and EBITDA margins have shown some resilience, the overall trend suggests a need for strategic adjustments to improve revenue and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk in volatile market conditions. The return on equity is negative, reflecting the company's struggles to generate returns for shareholders. The equity ratio remains stable, but the overall financial health is impacted by high debt levels and negative returns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations. However, the free cash flow to net income ratio is low, suggesting limited cash available for reinvestment or debt reduction. Improving cash flow generation is crucial for financial stability.

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

• Technical Analysis Sentiment: Positive
• Last Price: 5.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXA, the sentiment is Positive. The current price of 5.18 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 4.94, and below the 200-day MA of 5.42, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 68.58 is Neutral, neither overbought nor oversold. The STOCH value of 71.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEXA.

Nexa Resources SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAMY	66 Neutral	$1.23B	―	-3.27%	―	178.66%	82.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GSM	58 Neutral	$986.32M	27.86	-12.38%	1.11%	-8.59%	-256.43%
NEXA	53 Neutral	$711.20M	―	-9.63%	1.95%	8.66%	66.06%
CMP	48 Neutral	$807.51M	―	-40.17%	1.61%	7.27%	27.35%

Nexa Resources SA Corporate Events

Nexa Resources Faces Temporary Mine Suspension Due to Community Blockade

On August 12, 2025, Nexa Resources S.A. announced a partial and temporary suspension of mining activities at its Atacocha and El Porvenir mines due to illegal access blockades by a small group from the San Juan de Milpo community. Despite the disruption, there has been no significant impact on production, and the company is maintaining its 2025 production guidance. Nexa is actively engaging in dialogue with the community and authorities to resolve the situation peacefully, reaffirming its commitment to the social and economic development of its host communities.

Nexa Resources Reports Strong Q2 2025 Results Amid Strategic Progress

Nexa Resources S.A. reported solid financial results for the second quarter of 2025, with a net income of $13 million and an adjusted EBITDA of $161 million. The company has shown recovery from earlier weather-related disruptions and is revising its full-year production and cost guidance to prioritize operational stability. Key developments include progress in the Cerro Pasco integration project and the Aripuanã tailings filter installation, which are expected to enhance long-term operational capabilities. Despite facing pressure from zinc and lead prices, Nexa remains resilient with a focus on operational excellence and strategic investments.

Nexa Resources Reports Positive Financial Turnaround for Mid-2025

Nexa Resources S.A. reported its unaudited condensed consolidated interim financial statements for the three and six-month periods ending June 30, 2025. The company experienced a net income of $13.3 million for the three-month period, a significant improvement from a loss of $70 million in the same period in 2024. For the six-month period, Nexa’s net income was $42 million, compared to a loss of $82 million in the previous year. The financial results indicate a positive turnaround, reflecting improved operational efficiencies and financial management, which may enhance its market position and stakeholder confidence.

Nexa Resources S.A. Submits 2Q25 CEO and CFO Certifications

On July 31, 2025, Nexa Resources S.A., a company based in Luxembourg, submitted a report under the U.S. Securities Exchange Act of 1934. The report includes certifications from the interim CEO and CFO for the second quarter of 2025, indicating compliance and assurance in their financial reporting processes.

Nexa Resources Reports First Half 2025 Exploration Results

On July 29, 2025, Nexa Resources S.A. reported its exploration results for the first half of 2025, highlighting significant drilling activities across key projects in Peru, Brazil, and Namibia. The company completed 131,910 meters of drilling, with notable mineralization findings at Cerro Lindo, Aripuanã, Vazante, and El Porvenir, despite challenges such as adverse weather and karstic terrain. These results are expected to enhance Nexa’s mineral resource base and support future mine life extensions, with a continued focus on exploration in the second half of 2025.

Nexa Resources Resumes Operations at Cajamarquilla Smelter

On June 30, 2025, Nexa Resources S.A. announced the full resumption of operations at its Cajamarquilla smelter after a temporary three-day suspension due to labor negotiations. The company confirmed that its 2025 sales guidance remains unchanged, emphasizing its commitment to employee safety and regulatory compliance.