NEXNNexxen International Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (5.0×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NEXN?
Nexxen International Ltd. earns 7.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.5 points below what the capital costs: growth destroys value
- Operating margin
- 8.9%
Operating margin · Advertising Agencies median 5.7% · fiscal year to FY2025
- Cash conversion
- 5.05×
Cash conversion · 4.02× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −13%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −2.8% |
| FY2021 | 22% |
| FY2022 | 13% |
| FY2023 | −5.1% |
| FY2024 | 11% |
| FY2025 | 8.9% |
Details›
- Gross marginfiscal year to FY2025
- 85%
- Operating marginfiscal year to FY2025
- 8.9%
- Net marginfiscal year to FY2025
- 6.9%
- Free cash flow margin
- 27%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $365M
- Free cash flow, trailing twelve months
- $98M
- Net income, trailing twelve months
- $25M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.