Nexa Resources SA (NEXA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carpenter Technology Corp.

Southern Copper Corp.

ATI, Inc. (Texas)

Centrus Energy Corp.

Freeport-McMoRan, Inc.

Nexa Resources SA

Ivanhoe Electric, Inc.

MP Materials Corp.

Uranium Energy Corp.

U.S. Silica Holdings, Inc.

Ferroglobe PLC

Why is Nexa Resources SA ?

Low Debt Company with Strong Long Term Fundamental Strength

OPERATING CASH FLOW(Y) Highest at USD 310.27 MM
PRE-TAX PROFIT(Q) At USD 36.23 MM has Grown at 458.89%
ROCE(HY) Highest at -9.63%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.93%, its profits have risen by 2.2%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.93% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nexa Resources SA should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nexa Resources SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nexa Resources SA

-8.08%

-0.13

50.47%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.62%

EBIT Growth (5y)

75.38%

EBIT to Interest (avg)

1.77

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

1.63

Sales to Capital Employed (avg)

0.95

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.77%

ROCE (avg)

12.04%

ROE (avg)

4.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.74

EV to EBIT

7.32

EV to EBITDA

3.40

EV to Capital Employed

0.90

EV to Sales

0.74

PEG Ratio

Dividend Yield

ROCE (Latest)

12.29%

ROE (Latest)

-16.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 310.27 MM

PRE-TAX PROFIT(Q)

At USD 36.23 MM has Grown at 458.89%

ROCE(HY)

Highest at -9.63%

NET PROFIT(Q)

At USD 2.23 MM has Grown at 105.32%

-11What is not working for the Company

NET PROFIT(9M)

At USD -161.67 MM has Grown at -459.27%

DEBT-EQUITY RATIO (HY)

Highest at 167.7 %

INTEREST(Q)

At USD 66.37 MM has Grown at 36.77%

RAW MATERIAL COST(Y)

Grown by 26.86% (YoY

Here's what is working for Nexa Resources SA

Pre-Tax Profit

At USD 36.23 MM has Grown at 458.89%

over average net sales of the previous four periods of USD -10.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Operating Cash Flow

Highest at USD 310.27 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 2.23 MM has Grown at 105.32%

over average net sales of the previous four periods of USD -41.95 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Here's what is not working for Nexa Resources SA

Interest

At USD 66.37 MM has Grown at 36.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 167.7 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 26.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales