Nexa Resources S.A. Common Shares (NEXA)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $182 million in annual free cash flow (9.6% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.0% above cost of capital
• Revenue growth of 21.9% demonstrates strong top-line momentum
• FairStock composite score of 73/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Nexa Resources S.A. Common Shares is a micro-cap basic materials company valued at $1.9 billion. The business generates $3.0 billion in annual revenue with a 1.7% net margin and $182 million in free cash flow. From a quality standpoint, Nexa shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is attractively valued at 14.8x earnings, with trades above its Graham Number with a negative 10% margin. Growth dynamics show revenue growing at 21.9% and profit growth of 151.1%. The 1.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Nexa's 22% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $182 million in annual free cash flow (9.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer