(NEXA) Nexa Resources - Ratings and Ratios

Nexa Resources S.A., a global zinc mining and smelting company, operates through two primary segments: Mining and Smelting. The company produces metallic zinc, zamac, zinc oxide, and various by-products such as copper, lead, silver, gold, sulfuric acid, silver concentrate, copper cement, cadmium sticks, cobalt cement, sulfur dioxide, copper sulfate, and zinc ash. Its mining portfolio includes four polymetallic mines: two in the mineral-rich Central Andes of Peru, one in Minas Gerais, Brazil, and another in Mato Grosso, Brazil. On the smelting side, Nexa operates a zinc smelter in Cajamarquilla, Peru, and two additional smelters in Brazil, which process ores to recover metallic zinc, zinc oxide, and other by-products like sulfuric acid and copper sulfate. The company also engages in exporting its products globally. Originally founded in 1956 as VM Holding S.A., it rebranded to Nexa Resources S.A. in September 2017. Headquartered in Luxembourg, Nexa is a subsidiary of Votorantim S.A., a prominent industrial conglomerate. The company’s strategic locations in Peru and Brazil provide access to significant zinc reserves and infrastructure, positioning it as a key player in the global zinc industry.

From a technical perspective, Nexa’s stock (NYSE:NEXA) shows a last price of $5.34, with its SMA 20, 50, and 200 at $5.86, $5.74, and $6.72, respectively, indicating the stock is currently below its short- and long-term moving averages. The ATR of 0.26 reflects moderate volatility. On the fundamental side, Nexa’s market cap stands at $708.55M, with a forward P/E of 3.45, suggesting potential undervaluation. However, the negative RoE of -18.29% raises concerns about profitability. Considering these factors, Nexa’s stock may face near-term headwinds due to its current price trend and profitability challenges, but its low forward P/E and diversified mining operations could position it for recovery in a favorable commodity environment.