Executive Summary
Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business. More Details
Rewards
Risk Analysis
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
| NE0 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.9% | 0.2% |
| 30 Day | 4.2% | 1.7% | 2.1% |
| 90 Day | 24.5% | 16.8% | 5.6% |
| 1 Year | -22.6%-28.1% | 21.5%18.9% | 9.1%6.6% |
| 3 Year | n/a | -24.3%-29.6% | 6.8%-1.8% |
| 5 Year | n/a | 12.3%-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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.67yrs | US$1.50m | no data | |
| Senior VP of Finance | 1.5yrs | US$340.96k | no data | |
| Senior VP of Smelting & Member of Executive Board | no data | US$363.43k | no data | |
| Senior VP of Mining & Member of Executive Board | no data | US$536.39k | no data | |
| Senior VP of Mineral Exploration & Technology and Member of Executive Board | no data | US$389.84k | no data | |
| VP of Sustainability | no data | US$349.79k | no data | |
| Senior VP of Commercial & Supply Chain and Member of Executive Board | no data | US$686.29k | no data | |
| VP of Human Resources & Member of Executive Board | 1.67yrs | US$457.93k | no data | |
| Head of Investor Relations | 1.5yrs | no data | no data | |
| Chief Counsel | 1.67yrs | no data | no data | |
| Head of Financial Planning & Control | no data | no data | no data | |
| President of Peru | 2.5yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 4.08yrs | US$219.00k | no data | |
| Director | 4.08yrs | US$200.00k | no data | |
| Director | 1.25yrs | US$116.67k | no data | |
| Independent Director | 2.75yrs | US$219.00k | no data | |
| Chairman of the Board | 0.17yr | US$116.67k | no data | |
| Director | 0.25yr | no data | no data | |
| Director | 4.08yrs | US$240.00k | no data | |
| Independent Director | 4.08yrs | US$200.00k | no data | |
| Director | 3.92yrs | US$200.00k | no data | |
| Independent Director | 4.08yrs | US$224.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEXA | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Oct 2017 |
| NEXA | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Oct 2017 |
| NE0 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/18 03:10 |
| End of Day Share Price | 2020/09/17 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.