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NXTM

Nextcom TASE:NXTM Stock Report

Last Price

₪9.35

Market Cap

₪132.7m

7D

-1.1%

1Y

-20.8%

Updated

18 May, 2022

Data

Company Financials
NXTM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends2/6

NXTM Stock Overview

Nextcom Ltd. designs, plans, constructs, and maintains infrastructure and communication networks for wired and wireless in Israel and internationally.

Nextcom Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Nextcom
Historical stock prices
Current Share Price₪9.35
52 Week High₪14.78
52 Week Low₪9.22
Beta0.60
1 Month Change-24.90%
3 Month Change-22.73%
1 Year Change-20.76%
3 Year Change60.24%
5 Year Change190.28%
Change since IPO164.35%

Recent News & Updates

Apr 28
Nextcom (TLV:NXTM) Has A Pretty Healthy Balance Sheet

Nextcom (TLV:NXTM) Has A Pretty Healthy Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jan 27
Is Nextcom (TLV:NXTM) Using Too Much Debt?

Is Nextcom (TLV:NXTM) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NXTMIL TelecomIL Market
7D-1.1%-3.3%1.4%
1Y-20.8%44.2%15.4%

Return vs Industry: NXTM underperformed the IL Telecom industry which returned 48.7% over the past year.

Return vs Market: NXTM underperformed the IL Market which returned 16.2% over the past year.

Price Volatility

Is NXTM's price volatile compared to industry and market?
NXTM volatility
NXTM Average Weekly Movement6.7%
Telecom Industry Average Movement4.9%
Market Average Movement5.4%
10% most volatile stocks in IL Market9.2%
10% least volatile stocks in IL Market3.6%

Stable Share Price: NXTM is not significantly more volatile than the rest of IL stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NXTM's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992335Guy Israelyhttps://nextcomgroup.com

Nextcom Ltd. designs, plans, constructs, and maintains infrastructure and communication networks for wired and wireless in Israel and internationally. It engages in the installation of satellite television, cable television, high speed Internet, wired and wireless computer networks, VOIP telephony, telephone switchboards, closed circuit cameras and TV, IP and SDH communications lines, and PRI circuits; establishment of underground infrastructures, and laying of fiber optic cables; planning, erection, and maintenance of communications sites, switching centers, and cellular sites; and provides IPTV broadcasting services, as well as cloud based security, and home management and automation systems. The company also offers various turnkey solutions; communications solutions for LAN, such as switching and routing, as well as IP telephony solutions; information security solutions, such as IDS/IPS; monitoring and control systems; data communication infrastructure services; LAN and MPLS-based VPN services; security cameras and alarm systems; VOIP services, data security, and network management solutions; and deploys IPTV networks.

Nextcom Fundamentals Summary

How do Nextcom's earnings and revenue compare to its market cap?
NXTM fundamental statistics
Market Cap₪132.71m
Earnings (TTM)₪24.81m
Revenue (TTM)₪517.01m

5.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXTM income statement (TTM)
Revenue₪517.01m
Cost of Revenue₪461.07m
Gross Profit₪55.95m
Other Expenses₪31.14m
Earnings₪24.81m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.75
Gross Margin10.82%
Net Profit Margin4.80%
Debt/Equity Ratio78.2%

How did NXTM perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

12%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


5.35x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NXTM (₪9.35) is trading above our estimate of fair value (₪5.35)

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


Price To Earnings Ratio

PE vs Industry: NXTM is good value based on its PE Ratio (5.3x) compared to the Asian Telecom industry average (17.9x).

PE vs Market: NXTM is good value based on its PE Ratio (5.3x) compared to the IL market (11.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NXTM's PB Ratio (1.2x) is in line with the IL Telecom industry average.


Future Growth

How is Nextcom forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.7%

Forecasted Telecom industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nextcom has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Nextcom performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NXTM has a high level of non-cash earnings.

Growing Profit Margin: NXTM's current net profit margins (4.8%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: NXTM has become profitable over the past 5 years, growing earnings by 36.3% per year.

Accelerating Growth: NXTM's earnings growth over the past year (60.2%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: NXTM earnings growth over the past year (60.2%) exceeded the Telecom industry 18.5%.


Return on Equity

High ROE: NXTM's Return on Equity (23.3%) is considered high.


Financial Health

How is Nextcom's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NXTM's short term assets (₪261.7M) exceed its short term liabilities (₪168.4M).

Long Term Liabilities: NXTM's short term assets (₪261.7M) exceed its long term liabilities (₪51.0M).


Debt to Equity History and Analysis

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

Reducing Debt: NXTM's debt to equity ratio has increased from 42.3% to 78.2% over the past 5 years.

Debt Coverage: NXTM's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: NXTM's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Dividend

What is Nextcom current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NXTM's dividend (2.26%) is higher than the bottom 25% of dividend payers in the IL market (1.98%).

High Dividend: NXTM's dividend (2.26%) is low compared to the top 25% of dividend payers in the IL market (5.86%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NXTM has been paying a dividend for less than 10 years.

Growing Dividend: NXTM's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.1%), NXTM's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: NXTM is paying a dividend but the company has no free cash flows.


Next Steps

Management

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

8.4yrs

Average board tenure


CEO

Guy Israely (61 yo)

no data

Tenure

₪2,004,000

Compensation

Mr. Guy Israely serves as the Chairman of the Board and Chief Executive Officer of Nextcom Ltd.


CEO Compensation Analysis

Compensation vs Market: Guy's total compensation ($USD594.20K) is above average for companies of similar size in the IL market ($USD385.33K).

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


Board Members

Experienced Board: NXTM's board of directors are considered experienced (8.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Nextcom Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nextcom Ltd.
  • Ticker: NXTM
  • Exchange: TASE
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: ₪132.706m
  • Shares outstanding: 14.19m
  • Website: https://nextcomgroup.com

Number of Employees


Location

  • Nextcom Ltd.
  • 1 Horesh Halonim Street
  • Ramat Ishay Industrial Park
  • Jezreel Valley
  • 36582
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.