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1. Company Snapshot

1.a. Company Description

Nexity SA operates as a real estate company in Europe and internationally.The company operates through Development, Services, and Other Activities divisions.It develops new homes and subdivisions; and new or refurbished office buildings, high-rises, business parks, logistics facilities, retail property, hotels, and other industrial spaces.


The company also provides property management services comprising rental management, sales and lettings, and condominium managing agent services, as well as manages serviced residences for students and for seniors; distributes real estate products under the iSelection and PERL brands; offers real estate brokerage, and space planning services; and real estate services, including rental management and property management services.In addition, it engages in the villes and projets, and pre-development urban regeneration project activities; and investment activities, as well as startup in the incubation phase.The company serves individual, commercial, institutional, and local authority clients.


Nexity SA was founded in 1995 and is headquartered in Paris, France.

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1.b. Last Insights on NXI

Nexity SA's recent performance was negatively impacted by the company's high debt levels and declining profitability in its French operations. The operational implementation of New Nexity, which aims to seize opportunities for regional development, has yet to yield significant results. Additionally, the company's capital expenditure increased by 23% year-over-year, which may have put pressure on its cash flow. Furthermore, the disclosure of the total number of voting rights and shares as of April 16, 2025, revealed a net total of 55,701,973 voting rights, indicating a slight decrease in the company's ownership structure.

1.c. Company Highlights

2. Nexity's Turnaround Gains Momentum

Nexity's financial performance in 2025 showed significant improvement, with revenue standing at EUR 2.7 billion, down 14% on a like-for-like basis. The operating income for the year was EUR 25 million, a substantial improvement of EUR 143 million versus 2024. The company's operating cash flow was positive at EUR 107 million, with EUR 54 million of this being from non-opportunistic decisions. As Pierre Pouchelon noted, the company's restructuring efforts in 2024 have started to bear fruit, with the percentage to completion method expected to balance the margin and revenue in 2026.

Publication Date: Mar -07

📋 Highlights
  • Stabilized Backlog & High-Quality Projects:: Nexity's backlog stopped declining since September 30, now replenished with high-margin operations, while operating cash flow improved to EUR 107M (up from EUR -118M in 2024).
  • Positive COP and Deleveraging:: COP turned positive at EUR 25M, driven by restructuring 70% of 2025 revenue units, alongside net debt reduction to EUR 278M (down EUR 52M) and WCR decline to EUR 606M (-30% YoY).
  • Residential Reservations Surge:: 12,000 reservations (up 19% YoY to 2,600 units) with 90% in high-demand areas, outperforming the market for two consecutive quarters.
  • Improved Operating Profitability:: 2025 operating income reached EUR 25M, a EUR 143M improvement from 2024, despite 14% like-for-like revenue decline to EUR 2.7B.
  • Debt Ratio Target and 2026 Outlook:: Nexity aims for a 3.5x debt ratio, with 2026 profitability gains expected from declining reservations' mechanical effect and 60% bulk sales retention.

Operational Highlights

The company's backlog has stopped falling since September 30th and is being replenished with high-quality operations that meet commitment margins. Residential reservations are up 19% on 2024, with 2,600 units reserved. The pipeline currently represents five years of business activity, with 42,000 housing units that have had sales-purchase offers. The commercial offer is well-suited to the market, with 90% of available units positioned in areas with high demand.

Balance Sheet Strength

Nexity's working capital requirement (WCR) came out at EUR 606 million, down by almost 30% from end 2024. Net debt stood at EUR 278 million before accounting for the increased stake in Angelotti, down EUR 52 million. Net financial debt stood at EUR 328 million, well below guidance. The structure of financial debt reflects gross debt of EUR 914 million, down 17% over one year by EUR 182 million.

Valuation Metrics

With a P/E Ratio of -1.28 and a P/B Ratio of 0.28, the market appears to be pricing in a significant level of distress. However, the company's improving profitability and deleveraging efforts may indicate that the worst is behind it. The EV/EBITDA ratio of -1.7 and Net Debt / EBITDA of -1.3 also suggest that the company's valuation is attractive. Analysts estimate next year's revenue growth at 3.2%, which may provide a catalyst for the stock to re-rate.

Outlook

Nexity's guidance for 2026 suggests that revenue will decline due to a mechanical effect from declining reservations. However, profitability and margins are expected to improve, particularly in residential property. The company aims to achieve a 3.5x debt ratio as soon as possible and is on a positive trend. As Pierre Pouchelon stated, the return to a 7% operating margin will depend on the company's ability to roll out new transactions in 2026, particularly after the local elections in March.

3. NewsRoom

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Nexity SA (NNXXY) Full Year 2025 Earnings Call Highlights: Strong Financial Management Amid ...

Feb -27

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Information relating to the financial conditions of the departure of Mr Jean-Claude Bassien

Feb -25

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Nexity - 2025 Full Year results

Feb -25

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Nexity: Half-year liquidity contract statement - 31 December 2025

Jan -06

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Nexity_PR_Business Activity at 30 September 2025

Oct -23

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New Executive Committee focused on Business Line Development to offer the best services and solutions for all our clients

Sep -29

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Implementation of a share buyback program

Sep -18

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Nexity SA (FRA:NQ9) (H1 2025) Earnings Call Highlights: A Turnaround in Profitability Amid ...

Jul -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Promotion

Expected Growth: 4.83%

Nexity SA's 4.83% growth is driven by increasing demand for sustainable and eco-friendly residential projects, strategic expansion into high-growth regions, and effective cost management. Additionally, the company's focus on digitalization and innovation has improved operational efficiency, contributing to its growth momentum.

Services

Expected Growth: 4.83%

Nexity SA's 4.83% growth is driven by increasing demand for urban regeneration projects, expansion into new regions, and a strong pipeline of residential and commercial developments. Additionally, the company's focus on sustainable and energy-efficient solutions resonates with environmentally conscious clients, contributing to its growth momentum.

Reconciling Items

Expected Growth: 4.83%

Nexity SA's 4.83% growth is driven by increasing demand for sustainable and eco-friendly housing, strategic expansion into new regions, and a strong order book. Additionally, the company's focus on digitalization and process optimization has improved operational efficiency, leading to higher margins and profitability.

7. Detailed Products

Residential Real Estate Development

Nexity SA develops and sells residential properties, including apartments, houses, and condominiums, to individuals and investors.

Commercial Real Estate Development

Nexity SA develops and leases commercial properties, including office buildings, retail spaces, and logistics facilities, to businesses and organizations.

Urban Planning and Development

Nexity SA provides urban planning and development services, including project management, urban design, and infrastructure development, to local authorities and private developers.

Property Management

Nexity SA provides property management services, including rental management, maintenance, and repair, to property owners and investors.

Real Estate Services

Nexity SA provides real estate services, including brokerage, valuation, and consulting, to individuals, businesses, and investors.

8. Nexity SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Nexity SA is moderate due to the presence of alternative real estate companies and property developers in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for Nexity SA as the company operates in a niche market with limited competition, giving customers limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Nexity SA as the company relies on a network of suppliers for materials and services, but has some flexibility to negotiate prices.

Threat Of New Entrants

The threat of new entrants is high for Nexity SA as the real estate development industry is attractive and has relatively low barriers to entry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Nexity SA as the company operates in a competitive market with several established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.95%
Debt Cost 5.85%
Equity Weight 50.05%
Equity Cost 9.90%
WACC 7.88%
Leverage 99.78%

11. Quality Control: Nexity SA passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Novavest Real Estate

A-Score: 6.2/10

Value: 3.5

Growth: 4.6

Quality: 5.4

Yield: 5.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Henry Boot

A-Score: 5.6/10

Value: 7.1

Growth: 5.3

Quality: 5.2

Yield: 5.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Diös Fastigheter

A-Score: 5.0/10

Value: 5.5

Growth: 3.2

Quality: 5.6

Yield: 5.6

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Trianon

A-Score: 4.4/10

Value: 5.3

Growth: 4.0

Quality: 5.9

Yield: 2.5

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Stendörren Fastigheter

A-Score: 4.1/10

Value: 3.2

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Nexity

A-Score: 3.5/10

Value: 8.9

Growth: 2.9

Quality: 1.7

Yield: 5.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.76$

Current Price

7.76$

Potential

-0.00%

Expected Cash-Flows