MP Materials Corp. (MP) vs Nexa Resources S.A. (NEXA)

MP Materials Corp. and Nexa Resources S.A. are both Other Industrial Metals & Mining companies. MP Materials Corp. is the larger, with a market value of $6.0B against $1.5B — 4.0× the size. MP Materials Corp. has negative trailing earnings, so its P/E is not meaningful; Nexa Resources S.A. trades at 9.4×. Nexa Resources S.A. grew revenue faster over the last twelve months: 28.0% against 26.1%. Nexa Resources S.A. has the higher net margin (4.00% vs −19.9%) and the higher return on invested capital (13.7% vs −4.28%). Across the 18 metrics below, Nexa Resources S.A. leads on 14 and MP Materials Corp. on 4.

Valuation

Metric MP NEXA Other Industrial Metals & Mining median
P/E n/m 9.38 22.71
P/S 19.86 0.41 5.39
P/B 3.10 1.04 1.39
Price to free cash flow n/m 12.33 14.19
EV/EBITDA n/m 3.05 5.51
EV/Sales 18.39 0.78 4.77
Earnings yield (1.00%) 10.67% (11.17%)
Free cash flow yield (8.32%) 8.11% (7.91%)

Profitability

Metric MP NEXA Other Industrial Metals & Mining median
Gross margin 57.69% 29.53% 14.48%
Operating margin (41.54%) 16.76% 0.00%
Net margin (19.85%) 4.00% 0.00%
Free cash flow margin (165.23%) 3.36% 0.00%
Return on equity (4.08%) 10.74% (6.24%)
Return on assets (2.00%) 2.72% (14.10%)
Return on invested capital (4.28%) 13.73% (3.57%)

Growth

Metric MP NEXA Other Industrial Metals & Mining median
Revenue growth (TTM) 26.13% 28.04% 28.07%
EPS growth (last fiscal year) 12.28% 164.52% (14.00%)
Revenue growth, 5-year CAGR 10.82% 9.00% 6.99%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MP NEXA Other Industrial Metals & Mining median
Debt to equity 0.39 1.21 0.04
Current ratio 9.51 0.82 2.53
Net debt to EBITDA 13.83 1.48 1.03

Dividend

Metric MP NEXA Other Industrial Metals & Mining median
Dividend yield — 0.00% 2.31%
Payout ratio — 0.00 0.12

Size

Metric MP NEXA Other Industrial Metals & Mining median
Market cap 6.01b 1.50b 433.17m

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