DB:NE0

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business. More Details


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NE0's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

NE0

1.9%

DE Metals and Mining

0.2%

DE Market


1 Year Return

-28.1%

NE0

18.9%

DE Metals and Mining

6.6%

DE Market

Return vs Industry: NE0 underperformed the German Metals and Mining industry which returned 18.9% over the past year.

Return vs Market: NE0 underperformed the German Market which returned 6.6% over the past year.


Shareholder returns

NE0IndustryMarket
7 Day1.7%1.9%0.2%
30 Day4.2%1.7%2.1%
90 Day24.5%16.8%5.6%
1 Year-22.6%-28.1%21.5%18.9%9.1%6.6%
3 Yearn/a-24.3%-29.6%6.8%-1.8%
5 Yearn/a12.3%-0.9%38.9%20.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NE0 (€6.15) is trading above our estimate of fair value (€2.82)

Significantly Below Fair Value: NE0 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NE0 is unprofitable, so we can't compare its PE Ratio to the XE Metals and Mining industry average.

PE vs Market: NE0 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NE0's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NE0 is good value based on its PB Ratio (0.7x) compared to the XE Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Nexa Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

84.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NE0 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: NE0 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NE0's is expected to become profitable in the next 3 years.

Revenue vs Market: NE0's revenue (7.2% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: NE0's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NE0's Return on Equity is forecast to be low in 3 years time (2.5%).


Next Steps

Past Performance

How has Nexa Resources performed over the past 5 years?

-72.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NE0 is currently unprofitable.

Growing Profit Margin: NE0 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NE0 is unprofitable, and losses have increased over the past 5 years at a rate of 72.7% per year.

Accelerating Growth: Unable to compare NE0's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NE0 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-14.2%).


Return on Equity

High ROE: NE0 has a negative Return on Equity (-52.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nexa Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NE0's short term assets ($1.4B) exceed its short term liabilities ($627.0M).

Long Term Liabilities: NE0's short term assets ($1.4B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: NE0's debt to equity ratio (118%) is considered high.

Reducing Debt: NE0's debt to equity ratio has increased from 32.4% to 118% over the past 5 years.


Balance Sheet


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 NE0 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NE0 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NE0's dividend (5.54%) is higher than the bottom 25% of dividend payers in the German market (1.17%).

High Dividend: NE0's dividend (5.54%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

Stable Dividend: NE0 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NE0 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: NE0 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NE0's dividends in 3 years are forecast to be covered by earnings (85.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Tito Martins (58 yo)

8.67yrs

Tenure

US$1,495,866

Compensation

Mr. Tito Botelho Martins, Junior, has been Chief Executive Officer of Nexa Resources S.A. (formerly, VM Holding S.A.) since 2012 and serves as its President and Member of Executive Board. Mr. Martins serve ...


CEO Compensation Analysis

Compensation vs Market: Tito's total compensation ($USD1.50M) is about average for companies of similar size in the German market ($USD1.30M).

Compensation vs Earnings: Tito's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tito Martins
President8.67yrsUS$1.50mno data
Rodrigo Menck
Senior VP of Finance1.5yrsUS$340.96kno data
Mauro Boletta
Senior VP of Smelting & Member of Executive Boardno dataUS$363.43kno data
Leonardo Nunes Coelho
Senior VP of Mining & Member of Executive Boardno dataUS$536.39kno data
Jones Aparecido Belther
Senior VP of Mineral Exploration & Technology and Member of Executive Boardno dataUS$389.84kno data
Felipe Baldassari Guardiano
VP of Sustainabilityno dataUS$349.79kno data
Ricardo Moraes Galvão Porto
Senior VP of Commercial & Supply Chain and Member of Executive Boardno dataUS$686.29kno data
Gustavo Cicilini
VP of Human Resources & Member of Executive Board1.67yrsUS$457.93kno data
Roberta Varella
Head of Investor Relations1.5yrsno datano data
Renata Penna
Chief Counsel1.67yrsno datano data
Glaisy Domingues
Head of Financial Planning & Controlno datano datano data
Martín Vizcarra
President of Peru2.5yrsno datano data

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: NE0's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniella Dimitrov
Independent Director4.08yrsUS$219.00kno data
Diego Hernandez Cabrera
Director4.08yrsUS$200.00kno data
Ian Pearce
Director1.25yrsUS$116.67kno data
Jane Sadowski
Independent Director2.75yrsUS$219.00kno data
Jaime Gómez
Chairman of the Board0.17yrUS$116.67kno data
Gianfranco Maximo Castagnola Zuniga
Director0.25yrno datano data
Luis de Moraes
Director4.08yrsUS$240.00kno data
Eduardo de Andrade Filho
Independent Director4.08yrsUS$200.00kno data
Joao Henrique de Souza Schmidt
Director3.92yrsUS$200.00kno data
Edward Ruiz
Independent Director4.08yrsUS$224.00kno data

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: NE0's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Nexa Resources S.A.
  • Ticker: NE0
  • Exchange: DB
  • Founded: 1956
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$903.231m
  • Listing Market Cap: US$763.953m
  • Shares outstanding: 132.44m
  • Website: https://www.nexaresources.com

Number of Employees


Location

  • Nexa Resources S.A.
  • 37A, Avenue J.F. Kennedy
  • Luxembourg City
  • 1855
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEXATSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2017
NEXANYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2017
NE0DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2017

Biography

Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business. It also produces copper, lead, silver, and gold deposits. The company owns and operates five mines, includin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 03:10
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.