BME:NEA

Stock Analysis Report

Executive Summary

milling, gantry type milling, and top gantry type milling machines; and express delivery machines, as well as machines with a T-shaped configuration.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.7%

NEA

-0.4%

ES Machinery

-2.8%

ES Market


1 Year Return

-10.1%

NEA

-24.6%

ES Machinery

-27.7%

ES Market

Return vs Industry: NEA exceeded the Spanish Machinery industry which returned -22.8% over the past year.

Return vs Market: NEA exceeded the Spanish Market which returned -25.3% over the past year.


Shareholder returns

NEAIndustryMarket
7 Day6.7%-0.4%-2.8%
30 Day-9.6%-21.6%-22.6%
90 Day-21.3%-26.1%-29.4%
1 Year-7.5%-10.1%-22.9%-24.6%-25.1%-27.7%
3 Year68.5%63.8%-7.8%-14.2%-27.0%-33.8%
5 Year134.5%127.9%-12.1%-23.2%-29.2%-40.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEA (€3.84) is trading below our estimate of fair value (€6.03)

Significantly Below Fair Value: NEA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEA is good value based on its PE Ratio (5.9x) compared to the Machinery industry average (19.7x).

PE vs Market: NEA is good value based on its PE Ratio (5.9x) compared to the Spanish market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: NEA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NEA is good value based on its PB Ratio (0.9x) compared to the ES Machinery industry average (1.3x).


Next Steps

Future Growth

How is Nicolás Correa forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEA's earnings are forecast to decline over the next 3 years (-7.1% per year).

Earnings vs Market: NEA's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: NEA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NEA's revenue (3.4% per year) is forecast to grow slower than the Spanish market (4.2% per year).

High Growth Revenue: NEA's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEA's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Nicolás Correa performed over the past 5 years?

41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEA has high quality earnings.

Growing Profit Margin: NEA's current net profit margins (10.8%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: NEA's earnings have grown significantly by 41.2% per year over the past 5 years.

Accelerating Growth: NEA's earnings growth over the past year (2.8%) is below its 5-year average (41.2% per year).

Earnings vs Industry: NEA earnings growth over the past year (2.8%) exceeded the Machinery industry -3.6%.


Return on Equity

High ROE: NEA's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Nicolás Correa's financial position?


Financial Position Analysis

Short Term Liabilities: NEA's short term assets (€50.1M) exceed its short term liabilities (€26.8M).

Long Term Liabilities: NEA's short term assets (€50.1M) exceed its long term liabilities (€7.6M).


Debt to Equity History and Analysis

Debt Level: NEA's debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: NEA's debt to equity ratio has reduced from 52% to 15.1% over the past 5 years.

Debt Coverage: NEA's debt is well covered by operating cash flow (94.3%).

Interest Coverage: NEA's interest payments on its debt are well covered by EBIT (43.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: NEA's debt is covered by short term assets (assets are 6.2x debt).


Next Steps

Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEA's dividend (3.91%) is higher than the bottom 25% of dividend payers in the Spanish market (3.01%).

High Dividend: NEA's dividend (3.91%) is low compared to the top 25% of dividend payers in the Spanish market (8.05%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NEA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NEA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), NEA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEA's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

19.8yrs

Average board tenure


CEO

Nicolás Correa has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
José Ignacio Nicolás-Correa Barragán
Chairman50.83yrs€231.00kno data
Maria del Carmen Pinto Fuentes
MD & Executive Directorno data€76.00k0.77% 359.4k
Ana María Nicolás-Correa Barragán
Secretary & Director19.83yrs€49.00k2.76% 1.3m
Bibiana Nicolás-Correa Vilches
Deputy Secretary & Proprietary Directorno datano datano data
Rafael Miranda Robledo
Independent Directorno datano datano data
Felipe Oriol Díaz de Bustamante
External Director14.83yrs€32.00k0.35% 165.5k
Alfredo Sáenz Abad
Independent Directorno datano datano data

19.8yrs

Average Tenure

Experienced Board: NEA's board of directors are seasoned and experienced ( 19.8 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

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


Key Information

  • Name: Nicolás Correa, S.A.
  • Ticker: NEA
  • Exchange: BME
  • Founded: 1947
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €46.766m
  • Shares outstanding: 12.18m
  • Website: https://www.nicolascorrea.com

Number of Employees


Location

  • Nicolás Correa, S.A.
  • Alcalde Martín Cobos, 16A
  • Burgos
  • Castile and León
  • 9007
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEABME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1992
0FDNLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
NEAEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

milling, gantry type milling, and top gantry type milling machines; and express delivery machines, as well as machines with a T-shaped configuration. In addition, it provides applications engineering services; and after-sales services. The company serves the aeronautic, automotive, railway, wind energy, capital goods, energy, military, general machining, and oil and gas industries. Nicolás Correa, S.A. was founded in 1947 and is based in Burgos, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 20:53
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.