NEXANexa Resources S.A.
Is the business good?
The checks split: earnings fully cash-backed (0.9×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NEXA?
Nexa Resources S.A. earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 9.1 points above what the capital costs: growth creates value
- Operating margin
- 17%
Operating margin · Other Industrial Metals & Mining median 8.9% · fiscal year to FY2025
- Cash conversion
- 0.93×
Cash conversion · 1.61× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −20% |
| FY2021 | 17% |
| FY2022 | 12% |
| FY2023 | −5.9% |
| FY2024 | 10.0% |
| FY2025 | 17% |
Details›
- Gross marginfiscal year to FY2025
- 24%
- Operating marginfiscal year to FY2025
- 17%
- Net marginfiscal year to FY2025
- 4.4%
- Free cash flow margin
- 0.44%
- Revenue, trailing twelve months
- $3.00B
- Free cash flow, trailing twelve months
- $13M
- Net income, trailing twelve months
- $133M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.