For those who appreciate growth without the sticker shock, NASDAQ:NXT is worth considering.

Last update: May 20, 2024

Our stock screener has spotted NEXTRACKER INC-CL A (NASDAQ:NXT) as a growth stock which is not overvalued. NASDAQ:NXT is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

A Closer Look at Growth for NASDAQ:NXT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NXT scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 1002.10% over the past year.
NXT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.42%.
NXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.49% yearly.
NXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.90% yearly.
Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 12.85% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Looking at the Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NXT has received a 6 out of 10:

Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.60, NXT is valued a bit cheaper.
84.71% of the companies in the same industry are more expensive than NXT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NXT to the average of the S&P500 Index (20.15), we can say NXT is valued slightly cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 85.88% of the companies listed in the same industry.
NXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXT is cheaper than 87.06% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

How We Gauge Health for NASDAQ:NXT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NXT scores a 5 out of 10:

The Debt to FCF ratio of NXT is 0.34, which is an excellent value as it means it would take NXT, only 0.34 years of fcf income to pay off all of its debts.
NXT has a better Debt to FCF ratio (0.34) than 95.29% of its industry peers.
NXT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Quick ratio, with a value of 1.76, NXT is in the better half of the industry, outperforming 64.71% of the companies in the same industry.

Assessing Profitability for NASDAQ:NXT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NXT was assigned a score of 9 for profitability:

NXT has a better Return On Assets (12.16%) than 95.29% of its industry peers.
The Return On Equity of NXT (30.87%) is better than 95.29% of its industry peers.
With an excellent Return On Invested Capital value of 27.67%, NXT belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 10.94%.
The 3 year average ROIC (17.04%) for NXT is below the current ROIC(27.67%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 12.25%, NXT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
Looking at the Operating Margin, with a value of 23.49%, NXT belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
In the last couple of years the Operating Margin of NXT has grown nicely.
The Gross Margin of NXT (32.52%) is better than 72.94% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of NXT

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.