Nexa Resources SA (NEXA) AI Stock Analysis

• Market Cap: $827.74M
• Dividend Yield: 1.62%
• Average Volume (3M): 182.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 7.92%
• EPS Growth: 91.83%
• Country: US
• Employees: 5,760
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.16
• Shares Outstanding: 132,438,610
• 10 Day Avg. Volume: 306,779
• 30 Day Avg. Volume: 182,282
• PEG Ratio: 0.20
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 12.85
• Enterprise Value/Market Cap: 2.88
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 3.06
• 1Y Price Target: $5.90
• Price Target Upside: -5.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $2.79B

• Rating: 67 Neutral
• Price Target: $6.50 ▲(4.00% Upside)

Nexa Resources SA's overall stock score is driven by strong technical indicators and positive earnings call highlights, including record zinc production and improved financial metrics. However, the score is moderated by mixed financial performance, high leverage, and valuation challenges due to negative earnings.

Positive Factors

Operational Efficiency

The significant increase in zinc production at Aripuana highlights Nexa's operational efficiency and capacity to scale production, which is crucial for long-term growth and competitiveness in the mining sector.

Cash Flow Generation

Strong cash flow generation and reduced leverage enhance Nexa's financial stability, providing the company with the flexibility to invest in growth opportunities and manage debt effectively over the long term.

Sustainability Initiatives

Nexa's recognition for sustainability efforts underscores its commitment to ESG principles, which can improve its reputation, attract investment, and ensure compliance with evolving regulatory standards.

Negative Factors

High Leverage

Nexa's high leverage poses financial risks, potentially limiting its ability to invest in growth and increasing vulnerability to economic downturns, which could impact long-term financial health.

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, highlight the need for Nexa to improve cost management and operational efficiency to ensure sustainable financial performance.

Workforce Stability

High workforce turnover at Aripuana affects operational stability and efficiency, posing challenges for maintaining consistent production levels and increasing operational costs 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, which are produced from its mining operations. The company benefits from a diversified revenue model that includes both metal sales and by-products, such as lead and silver, derived from its ore processing. Key revenue streams include direct sales to industrial customers and trading companies, as well as long-term contracts that provide price stability. Additionally, Nexa's strategic partnerships with other mining entities and its focus on operational efficiency contribute to its profitability. Market fluctuations in commodity prices, particularly for zinc and copper, significantly impact its earnings, making the company sensitive to global demand trends in the mining sector.

Nexa Resources SA Financial Statement Overview

Summary

Nexa Resources SA shows modest revenue growth but struggles with profitability, indicated by a negative net profit margin. The balance sheet reveals high leverage, posing financial risks, while cash flow improvements suggest better cash generation capabilities. Overall, financial performance is mixed, with a need for enhanced profitability and reduced debt levels.

Income Statement

Nexa Resources SA shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 1.51% TTM, indicating a slight upward trajectory in sales. However, the net profit margin is negative at -3.26% TTM, reflecting ongoing profitability challenges. The gross profit margin is moderate at 18.99% TTM, suggesting some efficiency in production. The EBIT margin of 13.03% TTM is decent, but the negative net income highlights the need for better cost management.

Balance Sheet

The balance sheet of Nexa Resources SA reveals a high debt-to-equity ratio of 2.15 TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -10.16% TTM, reflecting challenges in generating returns for shareholders. The equity ratio is not explicitly provided, but the high leverage suggests a lower proportion of equity in the capital structure. Overall, the balance sheet indicates financial instability and a need for improved capital management.

Cash Flow

Nexa Resources SA's cash flow statement shows a strong free cash flow growth rate of 316.07% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.23 TTM, suggesting that operating activities are generating cash, albeit at a lower efficiency. The free cash flow to net income ratio is 0.04 TTM, highlighting limited free cash flow relative to net income. Overall, the cash flow position is improving, but further enhancements are needed for sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83B	2.77B	2.57B	3.03B	2.62B	1.95B
Gross Profit	527.07M	538.07M	298.88M	640.05M	633.09M	374.77M
EBITDA	779.08M	608.51M	205.43M	672.15M	697.68M	-304.84M
Net Income	-16.23M	-205.03M	-291.97M	49.70M	114.33M	-559.25M
Balance Sheet
Total Assets	5.18B	4.64B	4.84B	4.89B	4.90B	5.06B
Cash, Cash Equivalents and Short-Term Investments	470.33M	640.23M	468.32M	515.89M	763.02M	1.12B
Total Debt	1.92B	1.86B	1.73B	1.67B	1.72B	2.05B
Total Liabilities	3.92B	3.58B	3.38B	3.18B	3.26B	3.44B
Stockholders Equity	977.22M	813.93M	1.20B	1.44B	1.39B	1.38B
Cash Flow
Free Cash Flow	50.54M	90.71M	-57.04M	-120.43M	7.78M	-31.99M
Operating Cash Flow	350.88M	349.72M	256.20M	266.63M	492.99M	291.70M
Investing Cash Flow	-260.75M	-237.61M	-270.35M	-378.93M	-469.27M	-382.59M
Financing Cash Flow	-146.56M	61.94M	-34.64M	-149.23M	-344.13M	465.01M

Nexa Resources SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.25
• 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 NEXA, the sentiment is Positive. The current price of 6.25 is above the 20-day moving average (MA) of 5.85, above the 50-day MA of 5.49, and above the 200-day MA of 5.27, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 62.77 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
NEXA	67 Neutral	$827.74M	―	-1.64%	1.62%	7.92%	91.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CMP	50 Neutral	$742.89M	―	-40.17%	―	7.27%	27.35%
UAMY	49 Neutral	$823.41M	-143.41	-10.59%	―	240.12%	0.98%
GSM	45 Neutral	$733.44M	―	-16.00%	1.33%	-16.89%	-403.77%

Nexa Resources SA Corporate Events

Nexa Resources Reports Strong Q3 2025 Financial Results

Nexa Resources S.A. reported its financial results for the three and nine-month periods ending September 30, 2025, showing a substantial increase in net income compared to the previous year. The company achieved a net income of $100.1 million for the third quarter of 2025, a significant rise from $5.98 million in the same period of 2024, highlighting improved operational performance and financial stability. This positive financial outcome reflects Nexa’s strategic initiatives and operational efficiencies, which are likely to enhance its market position and provide value to stakeholders.

Nexa Resources Reports Strong Q3 2025 Results with $100 Million Net Income

Nexa Resources S.A. reported strong financial results for the third quarter of 2025, with a net income of $100 million and an adjusted EBITDA of $186 million. The company’s performance was bolstered by higher mining output and favorable metal prices, reflecting its operational reliability and disciplined capital allocation. Operational highlights include record zinc production at Aripuanã and advancements in key projects, positioning Nexa for long-term growth. The company remains resilient amid global volatility, supported by a competitive asset base and a strategic focus on sustainability, as evidenced by its commitment to renewable energy and decarbonization efforts.

Nexa Resources Confirms Accurate Q3 2025 Financial Filings

On October 30, 2025, Nexa Resources S.A. released its interim CEO and CFO certifications for the third quarter of 2025. The certifications confirm that the company’s interim financial filings for the period ending September 30, 2025, are accurate and fairly present the financial condition of the company. This announcement underscores Nexa’s commitment to transparency and compliance with financial reporting standards, which is crucial for maintaining investor confidence and regulatory compliance.