NASDAQ:NXT stands out as a growth opportunity that won't break the bank.

Last update: Jun 10, 2024

Here's NEXTRACKER INC-CL A (NASDAQ:NXT) for you, a growth stock our stock screener believes is undervalued. NASDAQ:NXT is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:NXT's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NXT, the assigned 8 reflects its growth potential:

NXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 999.95%, which is quite impressive.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 31.42%.
The Revenue has been growing by 30.49% on average over the past years. This is a very strong growth!
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.
NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.74% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NXT, the assigned 5 reflects its valuation:

Based on the Price/Earnings ratio, NXT is valued a bit cheaper than the industry average as 77.91% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.12. NXT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, NXT is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
NXT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXT is cheaper than 77.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaper than 80.23% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

How do we evaluate the Health for NASDAQ:NXT?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 7 out of 10:

An Altman-Z score of 3.59 indicates that NXT is not in any danger for bankruptcy at the moment.
NXT's Altman-Z score of 3.59 is fine compared to the rest of the industry. NXT outperforms 68.60% of its industry peers.
NXT has a debt to FCF ratio of 0.34. This is a very positive value and a sign of high solvency as it would only need 0.34 years to pay back of all of its debts.
NXT's Debt to FCF ratio of 0.34 is amongst the best of the industry. NXT outperforms 96.51% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NXT is not too dependend on debt financing.
NXT has a Quick ratio of 1.76. This is in the better half of the industry: NXT outperforms 62.79% of its industry peers.

Profitability Insights: NASDAQ:NXT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 9 out of 10:

NXT's Return On Assets of 12.16% is amongst the best of the industry. NXT outperforms 95.35% of its industry peers.
Looking at the Return On Equity, with a value of 31.87%, NXT belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
NXT's Return On Invested Capital of 27.67% is amongst the best of the industry. NXT outperforms 98.84% of its industry peers.
NXT had an Average Return On Invested Capital over the past 3 years of 17.04%. This is significantly above the industry average of 11.21%.
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 88.37% 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 97.67% of the companies in the same industry.
NXT's Operating Margin has improved in the last couple of years.
The Gross Margin of NXT (32.52%) is better than 73.26% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of NXT for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.