Nexxen International Ltd. Fundamental Analysis
Nexxen International Ltd. (NEXN) shows weak financial fundamentals with a PE ratio of 27.94, profit margin of 4.85%, and ROE of 3.82%. The company generates $0.4B in annual revenue with weak year-over-year growth of -0.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEXN's fundamental strength across five key dimensions:
Efficiency Score
WeakNEXN struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEXN shows balanced valuation metrics.
Growth Score
WeakNEXN faces weak or negative growth trends.
Financial Health Score
ExcellentNEXN maintains a strong and stable balance sheet.
Profitability Score
WeakNEXN struggles to sustain strong margins.
Key Financial Metrics
Is NEXN Expensive or Cheap?
P/E Ratio
NEXN trades at 27.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NEXN's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values Nexxen International Ltd. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.75 times EBITDA. This is generally considered low.
How Well Does NEXN Make Money?
Net Profit Margin
For every $100 in sales, Nexxen International Ltd. keeps $4.85 as profit after all expenses.
Operating Margin
Core operations generate 6.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.82 in profit for every $100 of shareholder equity.
ROA
Nexxen International Ltd. generates $2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nexxen International Ltd. produces operating cash flow of $71.98M, showing steady but balanced cash generation.
Free Cash Flow
Nexxen International Ltd. generates strong free cash flow of $54.21M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.97 in free cash annually.
FCF Yield
NEXN converts 12.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NEXN Stacks Against Its Sector Peers
| Metric | NEXN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.94 | 24.20 | Worse (Expensive) |
| ROE | 3.82% | 959.00% | Weak |
| Net Margin | 4.85% | -68674.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 1.25 | 1.71 | Neutral |
| ROA | 2.45% | -2558.00% (disorted) | Weak |
NEXN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nexxen International Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.92%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
1212.17%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
250.96%
Industry Style: Growth, Technology, Streaming
High Growth