Nexxen International (NEXN) AI Stock Analysis

• Market Cap: $659.90M
• Dividend Yield: N/A
• Average Volume (3M): 381.96K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.21
• Revenue Growth: 10.09%
• EPS Growth: N/A
• Country: US
• Employees: 895
• Sector: Communication Services
• Sector Strength: 81
• Industry: Traditional Media
• EPS (TTM): 0.54
• Shares Outstanding: 63,819,817
• 10 Day Avg. Volume: 367,813
• 30 Day Avg. Volume: 381,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 36.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Nexxen International's strong performance in key growth areas such as CTV and improved EBITDA margins drive a positive outlook, despite financial challenges and valuation concerns. The company's strategic initiatives and raised guidance further bolster its stock potential.

Positive Factors

CTV Market Expansion

Nexxen established a strong foothold in the CTV advertising market, which is rapidly growing, through strategic acquisitions and partnerships.

Financial Performance

Nexxen's revamped and undervalued two-sided programmatic platform is driving growth, innovation, and free cash flow.

Sales Execution

Sales execution continues to improve, particularly with independent agencies, as Nexxen added 112 new actively spending first-time advertiser customers in 4Q.

Negative Factors

Integration Challenges

Integration challenges and macro headwinds led to a difficult 2023 for Nexxen.

Nexxen International Business Overview & Revenue Model

Company Description

Tremor International Ltd offers advertising technologies with operations in more than 60 countries. It offers data-focused marketing solutions that drive brand insight in mobile, leveraging video, native, and display to reach the users for every app, service, and brand. The group's business divisions include Tremor Video, Unruly, RhythmOne, and Taptica. Geographically, it derives a majority of revenue from America and also has a presence in Asia, Europe, Israel, China, and other countries.

How the Company Makes Money

Nexxen International generates revenue through a multifaceted business model. The primary revenue streams include subscription fees from its cloud-based software platforms and licensing fees for its enterprise applications. Additionally, the company earns significant income from consulting services, where it provides digital transformation and cybersecurity expertise to its clients. Strategic partnerships with technology firms and ongoing client contracts also contribute to its financial success. Nexxen's focus on continuous innovation and customer-centric solutions helps maintain a steady flow of revenue and positions it competitively in the technology market.

Nexxen International Financial Statement Overview

Summary

Nexxen International faces financial challenges with declining revenues and a negative net profit margin, but maintains a strong balance sheet with low leverage. Operational inefficiencies impact profitability, and cash flow management needs improvement for sustaining operations.

Income Statement

Nexxen International's income statement reveals a mixed performance with declining revenue over the past few years. The gross profit margin remains healthy at 81.3% in 2023. However, the company is currently facing profitability challenges, evidenced by a negative net profit margin of -6.5% due to a net loss. The EBIT margin has also turned negative at -5.1%, indicating operational inefficiencies. The significant drop in revenue from 2021 to 2022 highlights growth concerns.

Balance Sheet

The balance sheet of Nexxen International shows a strong equity base with a debt-to-equity ratio of 0.25, indicating low leverage and financial stability. The equity ratio stands at 60.1%, showcasing a robust capital structure. However, there is a slight decline in stockholders' equity over the years. Despite this, the company's return on equity (ROE) has decreased to -3.95% in 2023, reflecting recent profitability issues.

Cash Flow

Nexxen's cash flow statement demonstrates resilience with a positive operating cash flow to net income ratio of -2.83, despite the net loss. The free cash flow has decreased from previous years, showing a contraction in liquidity. The free cash flow to net income ratio is a positive highlight, but the overall cash flow trends indicate a need for better cash management strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
365.48M	331.99M	335.25M	341.94M	211.92M
	Gross Profit
304.46M	269.72M	274.50M	270.29M	152.11M
	EBIT
40.82M	-16.98M	44.75M	74.46M	-6.03M
	EBITDA
106.15M	69.50M	89.74M	115.20M	39.61M
	Net Income Common Stockholders
35.44M	-21.49M	22.74M	73.22M	2.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
187.07M	234.31M	217.50M	367.72M	97.46M
	Total Assets
840.51M	904.80M	956.16M	802.74M	535.01M
	Total Debt
37.20M	136.13M	127.88M	14.99M	21.21M
	Net Debt
-149.87M	-98.17M	-89.62M	-352.72M	-76.25M
	Total Liabilities
309.66M	361.25M	404.55M	230.36M	205.99M
	Stockholders Equity
530.85M	543.55M	551.62M	572.38M	329.01M
Cash Flow		Free Cash Flow
127.31M	41.12M	67.83M	161.74M	29.71M
	Operating Cash Flow
150.84M	60.74M	83.01M	170.09M	35.16M
	Investing Cash Flow
-21.21M	-16.96M	-232.99M	-16.49M	4.92M
	Financing Cash Flow
-174.74M	-26.55M	3.06M	116.86M	-22.37M

Nexxen International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXN, the sentiment is Positive. The current price of 8.78 is below the 20-day moving average (MA) of 9.01, above the 50-day MA of 8.41, and above the 200-day MA of 8.49, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 95.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEXN.

Nexxen International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEXN	73 Outperform	$659.90M	19.22	6.60%	―	10.09%	―
WPP	73 Outperform	£6.36B	11.72	15.82%	6.68%	-0.70%	388.07%
ITV	67 Neutral	£2.99B	7.71	22.70%	6.25%	-3.75%	98.08%
SAA	66 Neutral	£191.94M	12.99	33.73%	1.02%	-12.89%	―
RCH	64 Neutral	£229.75M	4.28	8.15%	10.08%	-5.28%	148.54%
YOU	61 Neutral	£351.64M	265.93	0.70%	3.00%	42.19%	-94.16%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%