DB:NE0

Stock Analysis Report

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

NE0IndustryMarket
7 Day5.6%4.3%2.4%
30 Day9.9%2.8%2.3%
90 Day16.0%7.9%2.7%
1 Year-2.4%-7.0%-29.5%-30.6%8.2%4.9%
3 Yearn/a-33.9%-36.0%18.3%8.0%
5 Yearn/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

company5.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years4.8%

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

BuyUS$88,71024 May 19
Greathights Ventures Limited
EntityCompany
Shares10,000
Max PriceUS$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

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 Analysis2019/10/21 22:05
End of Day Share Price2019/10/21 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.