BN · rank #15 · 2026-10-23
NEX
PARIS · EUR · $5.62B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.37 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +8.9% |
| 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. | +50.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | — |
| Market cap (USD) | $5.62B |
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 cable manufacturer and installer specializing in high-voltage land and subsea power cables, with concentrated growth in European grid electrification, offshore wind, and subsea interconnectors.
Rationale
The bottleneck-solver thesis is directly reinforced by Nexans' qualified 525 kV HVDC XLPE technology, a €7.7 billion adjusted backlog with visibility to 2028, and industry estimates of a 27% annual European supply shortfall for cables above 132 kV through 2040, all of which support the eu_grid_cable_transformer_capacity macro theme and the 50% analyst upside implied by a 0.41 forward PEG.
Material risks
- 1Prysmian, NKT, Sumitomo, and LS Cable are actively expanding competing 525 kV HVDC manufacturing capacity, which is the single most direct threat to the scarcity-based pricing power underpinning the bottleneck-solver margin and revenue growth assumptions.
- 2The €1.2 billion Great Sea Interconnector backlog concentration, combined with debt-to-FCF of 2.88 and the freshly issued €500 million bond at 4.25%, creates meaningful downside if that project faces permitting delays, customer rescheduling, or cash-flow timing slippage.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.