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NEMA

Nemak S. A. B. de C. V BMV:NEMAK A Stock Report

Last Price

Mex$3.94

Market Cap

Mex$12.1b

7D

-6.0%

1Y

-41.5%

Updated

27 Jun, 2022

Data

Company Financials +
NEMAK A fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends2/6

NEMAK A Stock Overview

Nemak, S. A. B. de C. V. develops, manufactures, and sells aluminum components for powertrain, e-mobility, and structural applications to the automotive industry in North America, Europe, and internationally.

Nemak S. A. B. de C. V Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nemak S. A. B. de C. V
Historical stock prices
Current Share PriceMex$3.94
52 Week HighMex$7.75
52 Week LowMex$3.81
Beta0.80
1 Month Change-12.83%
3 Month Change-26.49%
1 Year Change-41.54%
3 Year Change-55.83%
5 Year Change-77.46%
Change since IPO-80.30%

Recent News & Updates

Jun 17
Is Nemak, S. A. B. de C. V. (BMV:NEMAKA) Potentially Undervalued?

Is Nemak, S. A. B. de C. V. (BMV:NEMAKA) Potentially Undervalued?

Nemak, S. A. B. de C. V. ( BMV:NEMAKA ), might not be a large cap stock, but it received a lot of attention from a...

Mar 18
Nemak S. A. B. de C. V (BMV:NEMAKA) Has A Somewhat Strained Balance Sheet

Nemak S. A. B. de C. V (BMV:NEMAKA) Has A Somewhat Strained Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

NEMAK AMX Auto ComponentsMX Market
7D-6.0%0.4%0.4%
1Y-41.5%-23.6%1.5%

Return vs Industry: NEMAK A underperformed the MX Auto Components industry which returned -24.6% over the past year.

Return vs Market: NEMAK A underperformed the MX Market which returned 0.5% over the past year.

Price Volatility

Is NEMAK A's price volatile compared to industry and market?
NEMAK A volatility
NEMAK A Average Weekly Movement6.0%
Auto Components Industry Average Movement6.4%
Market Average Movement4.6%
10% most volatile stocks in MX Market8.1%
10% least volatile stocks in MX Market2.7%

Stable Share Price: NEMAK A is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NEMAK A's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197921,064Armando Martinezhttps://www.nemak.com

Nemak, S. A. B. de C. V. develops, manufactures, and sells aluminum components for powertrain, e-mobility, and structural applications to the automotive industry in North America, Europe, and internationally. It offers powertrain components, such as cylinder heads, engine blocks, and transmission cases; vehicle structures, including longitudinal members, shock towers, and subframes; and e-mobility components comprising e-motor and battery housings. The company was formerly known as Tenedora Nemak, S. A. de C. V. and changed its name to Nemak, S. A. B. de C. V. in June 2015.

Nemak S. A. B. de C. V Fundamentals Summary

How do Nemak S. A. B. de C. V's earnings and revenue compare to its market cap?
NEMAK A fundamental statistics
Market CapMex$12.07b
Earnings (TTM)-Mex$609.39m
Revenue (TTM)Mex$79.17b

0.2x

P/S Ratio

-19.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEMAK A income statement (TTM)
RevenueMex$79.17b
Cost of RevenueMex$70.76b
Gross ProfitMex$8.41b
Other ExpensesMex$9.02b
Earnings-Mex$609.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.20
Gross Margin10.62%
Net Profit Margin-0.77%
Debt/Equity Ratio87.2%

How did NEMAK A perform over the long term?

See historical performance and comparison

Dividends

20.1%

Current Dividend Yield

-403%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NEMAK A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEMAK A?

Other financial metrics that can be useful for relative valuation.

NEMAK A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA4.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NEMAK A's PS Ratio compare to its peers?

NEMAK A PS Ratio vs Peers
The above table shows the PS ratio for NEMAK A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
GISSA A Grupo Industrial Saltillo. de
0.4x4.3%Mex$8.9b
VARROC Varroc Engineering
0.8x34.3%₹46.6b
7278 EXEDY
0.3x6.7%JP¥81.6b
605133 Jiangsu Rongtai Industry
3.4xn/aCN¥4.2b
NEMAK A Nemak S. A. B. de C. V
0.2x8.7%Mex$12.1b

Price-To-Sales vs Peers: NEMAK A is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does NEMAK A's PE Ratio compare vs other companies in the Global Auto Components Industry?

Price-To-Sales vs Industry: NEMAK A is good value based on its Price-To-Sales Ratio (0.2x) compared to the South American Auto Components industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is NEMAK A's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEMAK A PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: NEMAK A is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


Share Price vs Fair Value

What is the Fair Price of NEMAK A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEMAK A (MX$3.94) is trading below our estimate of fair value (MX$4.6)

Significantly Below Fair Value: NEMAK A is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

How is Nemak S. A. B. de C. V forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


52.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEMAK A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.1%).

Earnings vs Market: NEMAK A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NEMAK A is expected to become profitable in the next 3 years.

Revenue vs Market: NEMAK A's revenue (8.7% per year) is forecast to grow faster than the MX market (6.2% per year).

High Growth Revenue: NEMAK A's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEMAK A's Return on Equity is forecast to be low in 3 years time (8.9%).


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Past Performance

How has Nemak S. A. B. de C. V performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-39.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEMAK A is currently unprofitable.

Growing Profit Margin: NEMAK A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEMAK A is unprofitable, and losses have increased over the past 5 years at a rate of 39.7% per year.

Accelerating Growth: Unable to compare NEMAK A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEMAK A is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (7.4%).


Return on Equity

High ROE: NEMAK A has a negative Return on Equity (-1.77%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Nemak S. A. B. de C. V's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NEMAK A's short term assets (MX$37.4B) do not cover its short term liabilities (MX$37.7B).

Long Term Liabilities: NEMAK A's short term assets (MX$37.4B) exceed its long term liabilities (MX$31.0B).


Debt to Equity History and Analysis

Debt Level: NEMAK A's net debt to equity ratio (67.7%) is considered high.

Reducing Debt: NEMAK A's debt to equity ratio has increased from 78.4% to 87.2% over the past 5 years.

Debt Coverage: NEMAK A's debt is well covered by operating cash flow (32%).

Interest Coverage: NEMAK A's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is Nemak S. A. B. de C. V current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


20.05%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NEMAK A's dividend (20.05%) is higher than the bottom 25% of dividend payers in the MX market (1.91%).

High Dividend: NEMAK A's dividend (20.05%) is in the top 25% of dividend payers in the MX market (5.91%)


Stability and Growth of Payments

Stable Dividend: NEMAK A has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NEMAK A's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: NEMAK A is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (142.9%), NEMAK A's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

7.4yrs

Average management tenure


CEO

Armando Martinez (66 yo)

9.33yrs

Tenure

Mr. Armando Tamez Martínez serves as the President of Nemak at ALFA S.A.B de C.V. He joined ALFA in 1984. He has been the Chief Executive Officer at Nemak, S.A.B. de C.V. (a/k/a, Tenedora Nemak, S.A. de C....


Leadership Team

Experienced Management: NEMAK A's management team is seasoned and experienced (7.4 years average tenure).


Board Members

Experienced Board: NEMAK A's board of directors are considered experienced (7 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

Nemak, S. A. B. de C. V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nemak, S. A. B. de C. V.
  • Ticker: NEMAK A
  • Exchange: BMV
  • Founded: 1979
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: Mex$12.067b
  • Shares outstanding: 3.05b
  • Website: https://www.nemak.com

Number of Employees


Location

  • Nemak, S. A. B. de C. V.
  • Libramiento Arco Vial Km 3.8
  • Col. Centro
  • García
  • Nuevo Leon
  • 66000
  • Mexico

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
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.