| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 62.72 | -53 |
| Intrinsic value (DCF) | 69.50 | -48 |
| Graham-Dodd Method | 27.67 | -79 |
| Graham Formula | 111.85 | -16 |
Nexans S.A. (NEX.PA) is a global leader in advanced cable and connectivity solutions, headquartered in Courbevoie, France. Operating across four key segments—Building & Territories, High Voltage & Projects, Telecom & Data, and Industry & Solutions—Nexans provides critical infrastructure for smart cities, renewable energy, data centers, and industrial applications. The company specializes in high-voltage subsea and land cables for offshore wind farms and interconnections, positioning itself at the forefront of the energy transition. With a strong focus on sustainability, Nexans supports e-mobility, decentralized energy systems, and rural electrification. Its diversified portfolio includes copper and fiber optic solutions for telecom networks, hyperscale data centers, and customized industrial cabling. Nexans combines engineering expertise with smart grid solutions, making it a key player in the global electrification and digital transformation markets. Listed on Euronext Paris, Nexans serves clients worldwide with a revenue of €8.55 billion (2024) and a market cap of €4.25 billion.
Nexans presents a compelling investment case due to its leadership in high-growth segments like offshore wind, smart grids, and data infrastructure. The company’s €8.55 billion revenue and €279 million net income (2024) reflect strong operational execution, supported by robust operating cash flow of €775 million. Its high-voltage and telecom segments benefit from global renewable energy and digitalization trends, while its dividend yield (€2.6/share) adds income appeal. However, risks include exposure to volatile raw material costs (e.g., copper) and geopolitical tensions affecting energy projects. With a beta of 1.12, Nexans is moderately sensitive to market fluctuations, but its diversified industrial clientele and €1.25 billion cash reserve provide stability. Investors should monitor debt levels (€1.93 billion) and capex demands in offshore wind projects.
Nexans competes in the global cable industry by leveraging its technological expertise in high-voltage and subsea cables, a niche with high barriers to entry. Its competitive advantage lies in integrated solutions for offshore wind farms and interconnectors, where it rivals larger players like Prysmian. The Building & Territories segment benefits from regulatory tailwinds in EU smart city initiatives, while its Telecom & Data division capitalizes on hyperscale data center growth. Nexans’ focus on sustainability (e.g., recycled materials, low-carbon products) differentiates it in tenders for green energy projects. However, it faces pricing pressure from Asian manufacturers in standardized cables and relies on Europe-centric revenue (50%+). The company’s R&D investments in superconducting cables and modular high-voltage systems strengthen its positioning against competitors like NKT and LS Cable. Its Industry & Solutions segment’s customization capabilities defend margins but limit scalability compared to volume-driven rivals.