NYSE:NEXA

Stock Analysis Report

Executive Summary

Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business.

Rewards

Earnings are forecast to grow 70.12% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.24% is not well covered by earnings or forecast to be in the next 3 years



Snowflake Analysis

Moderate growth potential unattractive 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

Stable Share Price: NEXA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

NEXA

-2.2%

US Metals and Mining

0.06%

US Market


1 Year Return

-17.1%

NEXA

-3.8%

US Metals and Mining

19.4%

US Market

Return vs Industry: NEXA underperformed the US Metals and Mining industry which returned 0.9% over the past year.

Return vs Market: NEXA underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

NEXAIndustryMarket
7 Day-0.5%-2.2%0.06%
30 Day-0.5%-7.2%1.1%
90 Day8.7%-0.5%8.9%
1 Year-13.8%-17.1%-1.3%-3.8%21.9%19.4%
3 Yearn/a-5.4%-10.5%48.9%39.3%
5 Yearn/a17.8%8.7%71.9%53.1%

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

Valuation

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

0.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NEXA ($8.91) is trading above our estimate of fair value ($6.94)

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


Price To Earnings Ratio

PE vs Industry: NEXA is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: NEXA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEXA is good value based on its PB Ratio (0.5x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Nexa Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

70.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEXA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: NEXA's is expected to become profitable in the next 3 years.

Revenue vs Market: NEXA's revenue (0.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NEXA's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEXA's Return on Equity is forecast to be low in 3 years time (0.3%).


Next Steps

Past Performance

How has Nexa Resources performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEXA is currently unprofitable.

Growing Profit Margin: NEXA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEXA is unprofitable, and losses have increased over the past 5 years at a rate of -1.7% per year.

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

Earnings vs Industry: NEXA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (14.9%).


Return on Equity

High ROE: NEXA has a negative Return on Equity (-6.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nexa Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NEXA's short term assets ($1.4B) exceed its short term liabilities ($699.0M).

Long Term Liabilities: NEXA's short term assets ($1.4B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: NEXA's debt to equity ratio (59.9%) is considered high.

Reducing Debt: NEXA's debt to equity ratio has increased from 34.8% to 59.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NEXA's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NEXA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: NEXA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Nexa Resources's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nexa Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: NEXA's dividend (4.24%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NEXA's dividend (4.24%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: NEXA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NEXA's dividends in 3 years are not forecast to be well covered by earnings (147.8% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Tito Martins (57yo)

8.1yrs

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: Tito's total compensation ($USD1.84M) is about average for companies of similar size in the US market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tito Martins
President8.1yrsUS$1.84mno data
Mauro Boletta
Senior VP of Smelting & Member of Executive Board0yrsUS$286.58kno data
Leonardo Nunes Coelho
Senior VP of Mining & Member of Executive Board0yrsUS$400.49kno data
Valdecir Aparecido Botassini
Senior VP of Project Development & Execution and Member of Executive Board0yrsUS$678.12kno data
Jones Aparecido Belther
Senior VP of Mineral Exploration & Technology and Member of Executive Board0yrsUS$704.76kno data
Felipe Baldassari Guardiano
VP of Sustainability & Strategic Planning and Member of Executive Board0yrsUS$529.98kno data
Ricardo Moraes Galvão Porto
Senior VP of Commercial & Supply Chain and Member of Executive Board0yrsUS$644.98kno data
Rodrigo Menck
Senior VP of Finance0.9yrsno datano data
Gustavo Cicilini
VP of Human Resources & Member of the Management Board1.1yrsno datano data
Roberta Varella
Head of Investor Relations0.9yrsno datano data

1.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NEXA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniella Dimitrov
Independent Director2.1yrsUS$222.00kno data
Diego Hernandez Cabrera
Director3.5yrsUS$200.00kno data
Ian Pearce
Director0.7yrsno datano data
Jane Sadowsky
Independent Director2.1yrsUS$222.00kno data
Jaime Ardila Gómez
Director0.7yrsno datano data
Luis de Moraes
Chairman of the Board3.5yrsUS$240.00kno data
Jean Simon
Director3.5yrsUS$200.00kno data
Eduardo de Andrade Filho
Independent Director3.5yrsUS$200.00kno data
Joao Henrique de Souza Schmidt
Director3.3yrsUS$200.00kno data
Edward Ruiz
Independent Director2.1yrsUS$227.00kno data

2.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NEXA's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Nexa Resources S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nexa Resources S.A.
  • Ticker: NEXA
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$1.139b
  • 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, including three located in the Central Andes of Peru; and two located in the state of Minas Gerais in Brazil. In addition, it refines byproducts, such as sulfuric acid, as well as exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg, Luxembourg City. Nexa Resources S.A. is a subsidiary of Votorantim S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:28
End of Day Share Price2020/02/18 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.