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NEMAK A Stronger Margins And Revenue Will Support A Bullish Outlook

Electrification And Nearshoring Will Drive Lightweight Aluminum Demand

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NEMAK A
AnalystHighTarget
Not Invested
Published 27 Jul 2025

Update shared on 12 Dec 2025

Fair value Decreased 11%
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AnalystHighTarget's Fair Value
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1Y
72.0%
7D
-4.9%

Analysts have modestly reduced their price target on Nemak S. A. B. de C. V., trimming fair value by approximately 1.0 unit, while factoring in slightly higher discount rates alongside stronger expected revenue growth, profit margins, and a lower future earnings multiple.

Valuation Changes

  • Fair Value was reduced modestly from MX$9.5 to MX$8.5 per share, reflecting a slightly more conservative valuation despite improved operating assumptions.
  • The Discount Rate increased slightly from 22.56 percent to 22.71 percent, implying a marginally higher perceived risk or required return.
  • Revenue Growth was revised upward from approximately 5.14 percent to 7.64 percent, indicating stronger expected top line expansion.
  • The Net Profit Margin increased moderately from about 3.08 percent to 3.42 percent, pointing to an improved earnings outlook relative to sales.
  • The Future P/E was lowered meaningfully from 14.16x to 11.43x, resulting in a less demanding earnings multiple applied to forward profits.

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Disclaimer

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