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NEXN

NEUTRAL
$7.05 Live
Nexxen International Ltd. · NASDAQ
Target $11.69 (+65.8%)
$5.6 52W Range $12.6

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AI Analysis

AI-powered fundamental assessment

Confidence
80%
Nexxen presents a classic value conflict: a stable Piotroski F-Score of 4/9 and a Graham Number of $8.82 suggest defensive value, yet the company is currently experiencing significant contraction in both revenue (-10.3%) and earnings (-43.1%). While the balance sheet is exceptionally clean with a Debt/Equity ratio of 0.07 and the stock trades below book value (P/B 0.84), the technical trend is completely bearish (0/100). The stark discrepancy between the growth-based intrinsic value ($2.87) and the Graham number highlights the risk of a value trap despite optimistic analyst targets.

Key Strengths

Extremely low leverage with a Debt/Equity ratio of 0.07
Trading at a discount to book value (P/B 0.84)
Very attractive Forward P/E of 5.83 and PEG ratio of 0.42
High Gross Margins (84.93%) indicating strong core product pricing
Strong analyst support with a mean target price of $11.69

Key Risks

Negative YoY Revenue Growth (-10.30%)
Severe Earnings contraction (-43.10% YoY)
Bearish technical momentum (0/100 trend score)
Low Return on Equity (4.98%) suggesting inefficient capital use
Poor long-term price performance (5Y Change: -60.6%)
AI Fair Value Estimate
Based on comprehensive analysis
$7.85
+11.3% above current price

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