NEXA Intrinsic Value – NEXA RESOURCES S.A Reports Second Quarter Earnings For FY2023 On July 27th
July 29, 2023
🌥️Earnings Overview
On July 27, 2023, NEXA RESOURCES S.A ($NYSE:NEXA). released its financial results for the second quarter of FY2023, reporting total revenue of USD 626.7 million, which was a decrease of 24.4% from the same period in the previous year. Net income for the quarter was USD -102.5 million, compared to the year prior’s USD 109.0 million.
Stock Price
NEXA RESOURCES S.A reported their second quarter earnings for Fiscal Year 2023 on Thursday, July 27th. This announcement sent the company’s stock up nearly 7.2% from the previous closing price of $4.3. The stock opened at $4.3 and closed at $4.6, marking the rise in the company’s stock. The second quarter earnings report provided investors with an update on the state of the company’s financial performance. This included information such as NEXA RESOURCES S.A’s total revenue, net income, and total assets.
Investors were also able to see the company’s outlook for the future, as well as its plans for growth and expansion. Overall, the second quarter earnings report was positive news for NEXA RESOURCES S.A, as the stock rose by 7.2%. This positive reaction from investors demonstrates that they are confident in the company’s ability to sustain its financial performance and continue to deliver profits to shareholders. Investors will be keeping an eye on NEXA RESOURCES S.A in the coming months, as the company is likely to face a number of challenges in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NEXA. More…
| Total Revenues | Net Income | Net Margin |
| 2.78k | -245.13 | -6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NEXA. More…
| Operations | Investing | Financing |
| 158.94 | -294.33 | -78.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NEXA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.83k | 3k | 11.76 |
Key Ratios Snapshot
Some of the financial key ratios for NEXA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.9% | 106.2% | -0.9% |
| FCF Margin | ROE | ROA |
| -5.9% | -1.1% | -0.3% |
Analysis – NEXA Intrinsic Value
At GoodWhale, we performed an analysis of NEXA RESOURCES S.A’s wellbeing and determined that the intrinsic value of their share is around $8.0. This figure was calculated using our proprietary Valuation Line. Our analysis has revealed that NEXA RESOURCES S.A stock is currently trading at $4.6, which is significantly lower than the intrinsic value and represents a 42.2% undervaluation. This presents a great opportunity for investors to benefit from the potential undervaluation of NEXA RESOURCES S.A’s stock. More…
Peers
Nexa Resources SA is in constant competition with its competitors, Minera Frisco SAB de CV, Xinjiang Xinxin Mining Industry Co Ltd, and Lundin Mining Corp, for dominance in the mining industry. Each company has its own strengths and weaknesses, but all strive to come out on top. As such, understanding the competitive landscape is essential for Nexa Resources SA to stay ahead.
– Minera Frisco SAB de CV ($OTCPK:MFRVF)
Minera Frisco SAB de CV is a mining company based in Mexico City, Mexico. The company is a major producer of minerals such as copper, gold, and silver, as well as lime, soda ash and other industrial minerals, making it an important player in the mining industry. As of 2023, the company has a market capitalization of 977.8 million USD and an impressive Return on Equity of 13.27%. The company’s success is attributed to its reliable mining operations and its keen focus on cost efficiency and growth opportunities. The strong financial performance has enabled the company to continue to increase its market capitalization and ROE over the years, making it a desirable investment option for potential investors.
– Xinjiang Xinxin Mining Industry Co Ltd ($SEHK:03833)
Xinjiang Xinxin Mining Industry Co Ltd is a Chinese-based mineral extraction and processing company with a market cap of 3.05 billion as of 2023. Its Return on Equity (ROE) is an impressive 9.99%, which indicates that the company is generating healthy profits and is highly efficient in managing its resources. The company extracts and processes minerals such as copper, zinc, and iron, as well as other metal ores, and sells them to steel, chemical, and power companies across China and other Asian countries.
– Lundin Mining Corp ($TSX:LUN)
Lundin Mining Corp is a diversified base metals mining company with operations in Chile, Portugal, Sweden, and the Democratic Republic of Congo. The company has a market cap of 7.99B as of 2023, and a Return on Equity of 7.99%. Lundin Mining Corp actively explores and develops copper, zinc, lead, nickel, and gold deposits with a focus on operational excellence and environmental stewardship. The company is committed to maximizing long-term shareholder value through profitable production, disciplined growth, and responsible mining practices.
Summary
NEXA RESOURCES S.A reported its second quarter FY2023 earnings on July 27, 2023. Total revenue was USD 626.7 million, a decrease of 24.4% from the same period a year prior. Net income for the quarter totaled USD -102.5 million, a decrease from the prior year’s USD 109.0 million. Despite the decline, the stock price moved up on the news, indicating investor optimism in the company’s long-term performance and outlook.
Investors should carefully analyze the company’s fundamentals and financials to determine whether NEXA RESOURCES S.A is a good investment opportunity. Analysts will also need to keep an eye on macroeconomic conditions in Latin America that could influence the company’s performance going forward.
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