BN · rank #15 · 2026-10-20
NEX
PARIS · EUR · $5.97B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.39 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +8.6% |
| Forward net margin Consensus forward net margin. | +1.2% |
| Net margin TTM Trailing twelve month net margin. | +1.0% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.41 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 2.88× |
| Analyst upside Spread between the consensus 12m target and the current price. | +41.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | — |
| Market cap (USD) | $5.97B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Nexans is a French electrical-cable manufacturer specializing in high-voltage land and subsea power transmission systems, with growing exposure to offshore wind, grid interconnectors, and HVDC technology.
Rationale
The bottleneck-solver thesis is structurally reinforced: Nexans holds qualified 525 kV HVDC XLPE technology, a dedicated cable-laying vessel, TenneT framework contracts, and a €7.7 billion backlog extending to 2028 against a documented 27% European supply shortfall above 132 kV through 2040, while a 0.41 forward PEG and 41% analyst upside suggest the market has not fully priced the contracted earnings stream.
Material risks
- 1Prysmian, NKT, Sumitomo, and LS Cable are all expanding competing 525 kV HVDC manufacturing capacity, which is the single most direct threat to Nexans' scarcity-based pricing power and the core of the bottleneck moat.
- 2The €1.2 billion Great Sea Interconnector backlog concentration, combined with debt-to-FCF of 2.88 and a freshly issued €500 million bond at 4.25%, leaves the balance sheet meaningfully exposed to any project rescheduling, permitting delay, or cash-flow timing slip.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.