Risk factor
High price volatility
Profitability factor
Greatly undervalued vs peers
About
Nexa Resources S.A. primarily focuses on the mining and smelting of zinc. Beyond this core activity, the company also extracts and produces a diverse array of other materials, including silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. Its operations encompass five underground polymetallic mines, with three situated in the Central Andes region of Peru and two in Brazil's Minas Gerais State. Additionally, Nexa is currently developing the Aripuanã project, located in Mato Grosso, Brazil, and distributes its products internationally. Established in 1956 and headquartered in Luxembourg, Luxembourg, the firm was formerly known as VM Holding S.A., changing its name to Nexa Resources S.A. in September 2017. Nexa Resources S.A. functions as a subsidiary of Votorantim S.A.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, 'cheap'
Target Price
The average target price of NEXA is 13 and suggests 6% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrea