Executive Summary
Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business.
Snowflake
Fundamentals
Moderate 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
Market Performance
7 Day Return
5.6%
NE0
4.3%
DE Metals and Mining
2.4%
DE Market
1 Year Return
-7.0%
NE0
-30.6%
DE Metals and Mining
4.9%
DE Market
Return vs Industry: NE0 exceeded the German Metals and Mining industry which returned -30.6% over the past year.
Return vs Market: NE0 underperformed the German Market which returned 4.9% over the past year.
Shareholder returns
| NE0 | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | 4.3% | 2.4% |
| 30 Day | 9.9% | 2.8% | 2.3% |
| 90 Day | 16.0% | 7.9% | 2.7% |
| 1 Year | -2.4%-7.0% | -29.5%-30.6% | 8.2%4.9% |
| 3 Year | n/a | -33.9%-36.0% | 18.3%8.0% |
| 5 Year | n/a | -18.3%-22.9% | 44.2%24.6% |
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?
21x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NE0 (€9.4) is trading above our estimate of fair value (€5.87)
Significantly Below Fair Value: NE0 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NE0 is poor value based on its PE Ratio (21x) compared to the Metals and Mining industry average (9.1x).
PE vs Market: NE0 is poor value based on its PE Ratio (21x) compared to the German market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: NE0 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: NE0 is good value based on its PB Ratio (0.6x) compared to the DE Metals and Mining industry average (4.1x).
Next Steps
Future Growth
How is Nexa Resources forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
31.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NE0's forecast earnings growth (31.6% per year) is above the savings rate (0.2%).
Earnings vs Market: NE0's earnings (31.6% per year) are forecast to grow faster than the German market (12.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NE0's revenue (1.9% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: NE0's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NE0 is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Nexa Resources performed over the past 5 years?
38.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: NE0's earnings have grown significantly by 38.8% per year over the past 5 years.
Accelerating Growth: NE0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NE0 had negative earnings growth (-31%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.4%).
Return on Equity
High ROE: NE0's Return on Equity (2.8%) is considered low.
Return on Assets
ROA vs Industry: NE0's Return on Assets is below or equal to the Metals and Mining industry average last year.
Return on Capital Employed
ROCE Improving: NE0 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Nexa Resources's financial position?
Financial Position Analysis
Short Term Liabilities: NE0's short term assets ($1.5B) exceeds its short term liabilities ($645.4M)
Long Term Liabilities: NE0's short term assets (1.5B) do not cover its long term liabilities (2.2B)
Debt to Equity History and Analysis
Debt Level: NE0's debt to equity ratio (50.6%) is considered high
Reducing Debt: Insufficient data to determine if NE0's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NE0's debt is not well covered by operating cash flow (15.3%).
Interest Coverage: NE0's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Inventory Level: NE0 has a high level of physical assets or inventory.
Debt Coverage by Assets: NE0's debt is covered by short term assets (assets are 1.080350x debt).
Next Steps
Dividend
What is Nexa Resources's current dividend yield, its reliability and sustainability?
5.00%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: NE0's dividend (5%) is higher than the bottom 25% of dividend payers in the German market (1.46%).
High Dividend: NE0's dividend (5%) is in the top 25% of dividend payers in the German market (3.79%)
Stable Dividend: Too early to tell whether NE0's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if NE0's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (105%), NE0's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NE0's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).
Next Steps
Management
What is the CEO of Nexa Resources's salary, the management and board of directors tenure and is there insider trading?
0.6yrs
Average management tenure
CEO
Tito Martins (57yo)
7.8yrs
Tenure
US$1,836,693
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: Insufficient data to establish whether Tito's total compensation is reasonable compared to companies of similar size in the German market.
Compensation vs Earnings: Tito's compensation has been consistent with company performance over the past year.
Management Age and Tenure
0.6yrs
Average Tenure
55yo
Average Age
Experienced Management: NE0's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Board Age and Tenure
2.4yrs
Average Tenure
60.5yo
Average Age
Experienced Board: NE0's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 10,000 |
| Max Price | US$8.87 |
Ownership Breakdown
Management Team
Tito Martins (57yo)
President
- Tenure: 7.8yrs
- Compensation: US$1.84m
Rodrigo Menck (44yo)
Senior VP of Finance
- Tenure: 0.6yrs
Jones Aparecido Belther (51yo)
Senior VP of Mineral Exploration & Technology and Member of Executive Board
- Tenure: 0yrs
- Compensation: US$704.76k
Arlene Vasconcelos Domingues (55yo)
VP of Human Resources & Corporate Affairs and Member of Executive Board
- Tenure: 0yrs
- Compensation: US$393.27k
Roberta Varella
Head of Investor Relations
- Tenure: 0.6yrs
Felipe Baldassari Guardiano (56yo)
VP of Sustainability & Strategic Planning and Member of Executive Board
- Tenure: 0yrs
- Compensation: US$529.98k
Valdecir Aparecido Botassini (58yo)
Senior VP of Project Development & Execution and Member of Executive Board
- Tenure: 0yrs
- Compensation: US$678.12k
Mauro Boletta (58yo)
Senior VP of Smelting & Member of Executive Board
- Tenure: 0yrs
- Compensation: US$286.58k
Leonardo Nunes Coelho (42yo)
Senior VP of Mining & Member of Executive Board
- Tenure: 0yrs
- Compensation: US$400.49k
Ricardo Moraes Galvão Porto (45yo)
Senior VP of Commercial & Supply Chain and Member of Executive Board
- Tenure: 0yrs
- Compensation: US$644.98k
Board Members
Daniella Dimitrov (49yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$222.00k
Diego Hernandez Cabrera (70yo)
Director
- Tenure: 3.2yrs
- Compensation: US$200.00k
Ian Pearce (62yo)
Director
- Tenure: 0.3yrs
Jane Sadowsky (57yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$222.00k
Jaime Ardila Gómez (64yo)
Director
- Tenure: 0.3yrs
Luis de Moraes (59yo)
Chairman of the Board
- Tenure: 3.2yrs
- Compensation: US$240.00k
Jean Simon (63yo)
Director
- Tenure: 3.2yrs
- Compensation: US$200.00k
Eduardo de Andrade Filho (52yo)
Independent Director
- Tenure: 3.2yrs
- Compensation: US$200.00k
Joao Henrique de Souza Schmidt (40yo)
Director
- Tenure: 3yrs
- Compensation: US$200.00k
Edward Ruiz (69yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$227.00k
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$1.371b
- Listing Market Cap: US$1.230b
- 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 | 2019/10/21 22:05 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.