DB:NXS

Stock Analysis Report

Executive Summary

Nexans S.A. provides cables and cabling solutions worldwide.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Nexans's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

NXS

0.5%

DE Electrical

3.9%

DE Market


1 Year Return

34.4%

NXS

34.8%

DE Electrical

3.4%

DE Market

Return vs Industry: NXS exceeded the German Electrical industry which returned 34.8% over the past year.

Return vs Market: NXS exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

NXSIndustryMarket
7 Day3.3%0.5%3.9%
30 Day1.2%4.2%2.1%
90 Day13.0%14.1%3.7%
1 Year35.8%34.4%36.8%34.8%6.7%3.4%
3 Year-33.3%-35.8%-27.4%-31.0%18.9%8.6%
5 Year45.0%39.5%16.9%7.8%41.8%22.5%

Price Volatility Vs. Market

How volatile is Nexans's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nexans undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NXS (€33.85) is trading below our estimate of fair value (€98.51)

Significantly Undervalued: NXS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NXS is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: NXS is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NXS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NXS is good value based on its PB Ratio (1.2x) compared to the DE Electrical industry average (1.9x).


Next Steps

Future Growth

How is Nexans forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NXS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NXS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NXS's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: NXS's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NXS's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Nexans performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NXS is unprofitable, but has reduced losses over the past 5 years at a rate of 44.3% per year.

Accelerating Growth: Unable to compare NXS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NXS is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (-10.5%).


Return on Equity

High ROE: NXS has a negative Return on Equity (-10.93%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NXS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NXS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Nexans's financial position?


Financial Position Analysis

Short Term Liabilities: NXS's short term assets (€3.2B) exceeds its short term liabilities (€2.4B)

Long Term Liabilities: NXS's short term assets (3.2B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: NXS's debt to equity ratio (83.9%) is considered high

Reducing Debt: NXS's debt to equity ratio has increased from 77.3% to 83.9% over the past 5 years.


Balance Sheet

Inventory Level: NXS has a high level of physical assets or inventory.

Debt Coverage by Assets: NXS's debt is covered by short term assets (assets are 3.044710x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if NXS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NXS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Nexans's current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NXS's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: NXS's dividend (0.88%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: NXS's dividend payments have been volatile in the past 10 years.

Growing Dividend: NXS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NXS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NXS's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

What is the CEO of Nexans's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Christopher Guérin (47yo)

1.3yrs

Tenure

€1,180,382

Compensation

Mr. Christopher Guérin has been Chief Executive Officer of Nexans S.A. since July 4, 2018. Mr. Guérin has been aMember of Management Board of Nexans S.A. since 2014 and its Chairman of Management Board sin ...


CEO Compensation Analysis

Compensation vs. Market: Christopher has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Insufficient data to compare Christopher's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

47.5yo

Average Age

Experienced Management: NXS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

5.9yrs

Average Tenure

58yo

Average Age

Experienced Board: NXS's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mike Holmes

    Marketing Manager

    • Tenure: 0yrs
  • Nino Cusimano (55yo)

    Senior Corporate VP

    • Tenure: 0yrs
  • Benjamin Fitoussi (46yo)

    Senior EVP & COO

    • Tenure: 0yrs
  • Jean-Christophe Juillard (50yo)

    Senior Corporate VP & CFO

    • Tenure: 0.8yrs
  • David Dragone (43yo)

    Senior Corporate Vice President of Human Resources

    • Tenure: 0.6yrs
  • Christopher Guérin (47yo)

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: €1.18m
  • François Lavernos

    Chief Information Officer

    • Tenure: 0yrs
  • Pierre Kayoun

    Corporate Vice President of Technology & Innovation

    • Tenure: 0yrs
  • Paul Floren

    Senior Corporate Vice President of Communications

    • Tenure: 0yrs
  • Angéline Afanoukoé (48yo)

    Senior Manager of External Affairs & Director

    • Tenure: 2yrs

Board Members

  • José Francisco Pérez Mackenna (61yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: €61.00k
  • Andrónico Mariano Luksic Craig (65yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: €25.00k
  • Georges Chodron de Courcel (69yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: €250.00k
  • Véronique Guillot-Pelpel (68yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: €70.00k
  • Colette Lewiner (74yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: €43.00k
  • Kathleen Wantz-O'Rourke (53yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €43.00k
  • Hubert Porte (55yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: €46.00k
  • Fanny Letier (40yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €70.00k
  • Anne Lebel (52yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: €70.00k
  • Angéline Afanoukoé (48yo)

    Senior Manager of External Affairs & Director

    • Tenure: 2yrs

Company Information

Nexans S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nexans S.A.
  • Ticker: NXS
  • Exchange: DB
  • Founded: 1994
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €1.476b
  • Shares outstanding: 43.45m
  • Website: https://www.nexans.com

Number of Employees


Location

  • Nexans S.A.
  • Le Vinci
  • 4 allée de l’Arche
  • Courbevoie
  • Ile-de-France
  • 92400
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXPR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2001
NEXENXTPA (Euronext Paris)YesOrdinary SharesFREURMay 2001
NXSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2001
0IGFLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2001
NEXPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2001

Biography

Nexans S.A. provides cables and cabling solutions worldwide. The company operates through four segments: Building & Territories, High Voltage & Projects, Telecom & Data, and Industry & Solutions. The Build ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.