Nexi S.p.A. (NEXI) AI Stock Analysis

• Market Cap: €5.14B
• Dividend Yield: 6.32%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.13
• Revenue Growth: 3.12%
• EPS Growth: N/A
• Country: IT
• Employees: 8,609
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 1,172,545,400
• 10 Day Avg. Volume: 6,390,525
• 30 Day Avg. Volume: 7,798,447
• PEG Ratio: -0.35
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 13.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.89
• Price Target Upside: 47.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €4.50 ▲(12.78% Upside)

Nexi S.p.A.'s overall stock score is driven by strong revenue growth and a solid dividend yield, but is tempered by cash flow challenges and bearish technical indicators. The earnings call provides a balanced view with both growth and challenges. The stock is fairly valued, but rising debt and negative market momentum are concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, reinforcing Nexi's position in the digital payments sector.

Shareholder Value Creation

Significant capital returns to shareholders demonstrate strong cash generation and commitment to shareholder value, enhancing investor confidence.

Net Financial Debt Reduction

Reducing financial leverage while returning capital to shareholders indicates robust financial management and strengthens balance sheet health.

Negative Factors

Rising Debt Levels

Increased debt levels can strain financial flexibility, potentially impacting Nexi's ability to invest in growth and manage economic downturns.

Cash Flow Challenges

Zero free cash flow indicates potential liquidity issues, limiting Nexi's capacity to fund operations and growth initiatives without external financing.

EBITDA Margin Pressure

Margin pressure from revenue mix changes can impact profitability, necessitating strategic adjustments to maintain operational efficiency.

Nexi S.p.A. Business Overview & Revenue Model

Company Description

Nexi S.p.A. is a leading digital payments company based in Italy, specializing in the provision of payment services and solutions to businesses and consumers. The company operates primarily in the financial technology sector, offering a wide range of services, including payment processing, digital banking solutions, and e-commerce services. Nexi's core products include card payment systems, point-of-sale (POS) terminals, and online payment solutions, catering to both small and large enterprises across various industries.

How the Company Makes Money

Nexi generates revenue primarily through transaction fees charged to merchants for processing payments, which constitute a significant portion of its income. The company also earns money from subscription fees for its payment solutions and services, including POS equipment and software solutions. Additionally, Nexi benefits from partnerships with banks and financial institutions, allowing it to expand its service offerings and customer reach. Strategic collaborations with e-commerce platforms and other technology providers further enhance its revenue streams by integrating payment solutions into various consumer touchpoints.

Nexi S.p.A. Financial Statement Overview

Summary

Nexi S.p.A. shows robust revenue growth and stable gross profit margins, indicating operational efficiency. However, profitability is hindered by net losses, affecting net profit margins. The balance sheet is relatively strong with significant equity, but rising debt levels pose a risk. Cash flow challenges, particularly zero free cash flow in 2024, need addressing to ensure sustainable growth.

Income Statement

Nexi S.p.A. shows a consistent revenue growth trend with a significant increase in total revenue from 2023 to 2024. However, net profit margin is low due to substantial net income losses in 2023, though there is recovery in 2024. Gross profit margin remains stable, indicating efficient cost management, while EBIT and EBITDA margins show fluctuating profitability.

Balance Sheet

The company's balance sheet reflects moderate financial stability with a reasonable debt-to-equity ratio, although it has increased slightly from 2023 to 2024. Stockholders' equity remains strong, contributing to a healthy equity ratio. However, total debt levels have risen, posing a potential risk if not managed effectively.

Cash Flow

Cash flow statements indicate challenges, particularly with operating and free cash flow showing volatility. Free cash flow was positive in prior years but zero in 2024, which may affect future investments and debt servicing. The lack of operating cash flow in 2024 is concerning and requires attention to improve liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.05B	6.29B	5.90B	5.44B	3.02B	1.66B
Gross Profit	3.36B	3.66B	2.40B	2.36B	1.26B	784.28M
EBITDA	2.30B	2.27B	1.37B	1.31B	615.77M	473.09M
Net Income	287.96M	167.36M	-1.03B	140.02M	37.73M	127.93M
Balance Sheet
Total Assets	24.76B	24.50B	26.35B	25.55B	25.21B	6.29B
Cash, Cash Equivalents and Short-Term Investments	3.12B	74.67M	2.69B	2.00B	2.98B	544.73M
Total Debt	6.85B	7.95B	7.21B	6.97B	7.47B	2.78B
Total Liabilities	14.16B	13.54B	15.05B	13.30B	12.90B	4.73B
Stockholders Equity	10.58B	10.93B	11.27B	12.23B	12.30B	1.55B
Cash Flow
Free Cash Flow	385.68M	527.05M	772.98M	558.39M	-47.29M	169.40M
Operating Cash Flow	615.63M	974.03M	902.42M	1.09B	234.37M	304.60M
Investing Cash Flow	1.47B	-353.86M	-1.52B	-1.94B	-439.61M	-1.20B
Financing Cash Flow	-1.96B	-1.35B	88.81M	-240.24M	1.59B	941.17M

Nexi S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:NEXI, the sentiment is Negative. The current price of 3.99 is below the 20-day moving average (MA) of 4.56, below the 50-day MA of 4.77, and below the 200-day MA of 4.92, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 20.92 is Positive, neither overbought nor oversold. The STOCH value of 6.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:NEXI.

Nexi S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REY	74 Outperform	€4.44B	18.86	18.54%	1.00%	9.04%	13.17%
TPRO	71 Outperform	€6.05B	85.78	―	―	38.31%	-30.40%
IOT	62 Neutral	€445.47M	-28.56	-5.53%	―	-3.47%	-947.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	60 Neutral	€676.44M	168.84	1.04%	2.04%	17.21%	-80.93%
NEXI	59 Neutral	€5.14B	19.64	―	6.32%	3.12%	―
WIIT	58 Neutral	€512.91M	51.06	31.22%	1.56%	20.75%	-9.34%

Nexi S.p.A. Corporate Events

Nexi S.p.A. Earnings Call: Balanced Growth Amid Challenges

Nexi S.p.A.’s recent earnings call presented a balanced sentiment, highlighting both achievements and challenges. The company reported profitable growth and shareholder value creation, particularly noting strong performance in Germany and issuing solutions. However, it acknowledged challenges from extraordinary events impacting revenue growth, margin pressure, and potential future pressure on issuing solutions.