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Nexa Resources SA (NEXA)
NYSE:NEXA
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Nexa Resources SA
(NYSE:NEXA)
Rating:49Neutral
Price Target:
$5.00
▲(2.25% Upside)
Positive Factors
Operational Growth
The continued ramp-up of operations at Aripuana to its capacity remains the strongest driver of growth in Nexa’s portfolio.
Strategic Expansion
Nexa's potential acquisition of BHP's copper/gold assets in Brazil aligns with its strategy to increase exposure to copper.
Negative Factors
Financial Performance
Nexa experienced a significant free cash flow miss, with a cash burn of $226 million, well below estimates and consensus.
Labor Disputes
A strike at the Cajamarquilla refinery has led to a partial and temporary suspension of operations, impacting Nexa's zinc production.
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
$647.62M
Dividend Yield2.07%
Average Volume (3M)18.10K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth8.66%
EPS Growth66.06%
CountryUS
Employees5,760
SectorBasic Materials
Sector Strength63
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.20
Shares Outstanding132,438,610
10 Day Avg. Volume9,468
30 Day Avg. Volume18,103
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.71
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda3.61
Forecast
1Y Price Target
$5.38Price Target Upside10.02% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering8
Nexa Resources SA Business Overview & Revenue Model
Company DescriptionNexa 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 MoneyNexa 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sequential growth in revenue and EBITDA, driven by increased sales volumes and successful strategic projects. However, operational challenges at key mines and increased costs in the smelting segment posed significant hurdles. While the company demonstrated improved financial flexibility and exploration success, year-over-year financial performance showed declines.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
NEXA reported net revenues of $708 million, up 13% compared to the first quarter of 2025. Adjusted EBITDA increased by 28% sequentially to $161 million.
Smelting Segment Performance
The smelting segment reported total zinc sales of 145,000 tonnes, a 12% increase versus the first quarter of 2025.
Cerro Pasco Integration Project Progress
Phase 1 of the Cerro Pasco integration project is progressing well with key milestones achieved, including final engineering and permitting.
Exploration Success
Positive exploration results in Aripuana and Vazante reinforce long-term potential with ongoing confirmation of new mineralized zones.
Improved Financial Flexibility
Successful liability management efforts have extended debt maturities and improved the financial flexibility of the company.
Negative Updates
Operational Challenges at Aripuana
Aripuana faced increased downtime due to corrective stoppages and maintenance challenges, impacting production.
Vazante Production Issues
Vazante continued to face limited access to higher grade zones due to geotechnical challenges, leading to lower output.
Increased Smelting Costs
Consolidated smelting conversion costs increased by 19% quarter-over-quarter and 30% year-over-year due to higher maintenance expenses and input costs.
Lower Year-Over-Year Financial Performance
Net revenues declined by 4% year-over-year, and adjusted EBITDA decreased by 22% compared to the same quarter last year.
Company Guidance
During NEXA Resources' second quarter 2025 earnings call, guidance indicated several key metrics and operational updates. The company's net revenues increased by 13% quarter-over-quarter to $708 million, while adjusted EBITDA rose by 28% to $161 million. Zinc production reached 74,000 tonnes, marking a 9% quarter-over-quarter increase, although it was down 14% compared to the first half of the previous year. Total zinc sales in the smelting segment rose by 12% to 145,000 tonnes. Despite these gains, free cash flow was $17 million, reflecting improvements in working capital management. The company revised its full-year production and cost guidance due to operational challenges at Aripuana and Vazante, which also impacted smelters in Brazil. NEXA's debt management efforts led to an extension of debt maturities, maintaining its investment-grade profile. The Aripuana operation is expected to see enhanced capacity with the commissioning of a fourth tailings filter by the first half of 2026, while the Cerro Pasco integration project is progressing, with key milestones achieved.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.45
Neutral
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.40
Negative
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.50
Neutral
| 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
4.89
Price Trends
4.89
Negative
5.13
Negative
5.84
Negative
Market Momentum
>-0.01
Negative
49.84
Neutral
59.12
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 4.89 is above the 20-day moving average (MA) of 4.86, below the 50-day MA of 4.89, and below the 200-day MA of 5.84, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 59.12 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.74B | 40.99 | 2.55% | 7.73% | -1.97% | ― | |
61 Neutral | $10.31B | 6.16 | 0.76% | 2.94% | 3.30% | -36.34% | |
60 Neutral | $12.81B | ― | -9.57% | ― | 39.42% | -172.40% | |
50 Neutral | $815.56M | 27.86 | -12.38% | 1.24% | -8.59% | -256.43% | |
49 Neutral | $647.62M | ― | -9.63% | 2.07% | 8.66% | 66.06% | |
47 Neutral | $818.77M | ― | -40.17% | 1.61% | 7.27% | 27.35% | |
42 Neutral | $2.06B | ― | -364.03% | ― | ― | -9.91% |
* Basic Materials Sector Average
Performance Comparison
NEXA
Nexa Resources SA
4.89
-1.25
-20.36%
CMP
Compass Minerals International
19.64
10.66
118.71%
GSM
Ferroglobe
4.37
0.02
0.46%
STR
Sitio Royalties
18.12
-2.27
-11.13%
MP
MP Materials
69.83
57.33
458.64%
TMC
TMC the metals company Inc.
5.37
4.39
447.96%
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.