- Nexans projects its adjusted EBITDA to reach €1.15 billion by 2028, with a potential variance of €75 million.
- The company is focusing on completing its portfolio rotation towards Electrification by 2028.
- Return on Capital Employed (ROCE) is expected to exceed 20% by 2028.
- Capital expenditures are forecasted to be approximately €1.2 billion from 2025 to 2028.
- Cumulative free cash flow before mergers, acquisitions, and equity operations is anticipated to be around €1.4 billion between 2025 and 2028, with a conversion rate above 45% by 2028.
- Nexans aims to provide shareholder returns with a progressive dividend policy and a dividend payout ratio of at least 30%.
- The company targets organic growth of 3-5% compound annual growth rate (CAGR) for its existing Electrification portfolio.
- Analysts’ recommendations include 6 buys, 5 holds, and 3 sells.
Nexans SA on Smartkarma
Analyst coverage of Nexans SA on Smartkarma has been insightful, with Leonard Law, CFA, providing a bullish perspective in the recent report titled “Nexans – ESG Report” published on Smartkarma. The report, authored by Lucror Analytics, evaluates Nexans’ Environmental, Social, and Governance (ESG) performance. Lucror Analytics assesses Nexans’ ESG as “Adequate”, with a strong emphasis on the Environmental pillar. The company maintains strong scores in Social and Governance aspects as well. Controversies surrounding Nexans are deemed “Immaterial”, and the company’s disclosure practices are rated as “Strong”.
A look at Nexans SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nexans SA‘s long-term outlook appears promising. With a high Momentum score of 5, the company seems to be gaining traction and showing strong performance trends. Additionally, Nexans SA has scored well in Growth and Resilience, with scores of 3 for both factors, indicating potential for expansion and ability to withstand market challenges.
Although Nexans SA‘s scores for Value and Dividend are relatively lower at 2 each, the overall outlook remains positive due to its strong performance in Momentum, Growth, and Resilience. As a company that manufactures a wide range of cables for various industries, including telecommunications, energy, aeronautics, and more, Nexans SA‘s diversified product portfolio positions it well for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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