NASDAQ:NXT is showing decent growth, but is still valued reasonably.

Last update: Jul 23, 2024

NEXTRACKER INC-CL A (NASDAQ:NXT) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NXT is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Understanding NASDAQ:NXT's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NXT has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 999.95% over the past year.
Looking at the last year, NXT shows a very strong growth in Revenue. 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.
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.61% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: NASDAQ:NXT

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NXT boasts a 6 out of 10:

Based on the Price/Earnings ratio, NXT is valued cheaper than 84.78% of the companies in the same industry.
NXT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, NXT is valued cheaply inside the industry as 83.70% of the companies are valued more expensively.
NXT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
85.87% of the companies in the same industry are more expensive than NXT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 85.87% of the companies listed in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

Assessing Health Metrics for NASDAQ:NXT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 7 out of 10:

An Altman-Z score of 3.13 indicates that NXT is not in any danger for bankruptcy at the moment.
The Altman-Z score of NXT (3.13) is better than 68.48% 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 has a better Debt to FCF ratio (0.34) than 96.74% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NXT is not too dependend on debt financing.
The Debt to Equity ratio of NXT (0.15) is better than 61.96% of its industry peers.
With a decent Quick ratio value of 1.76, NXT is doing good in the industry, outperforming 66.30% of the companies in the same industry.

Profitability Examination for 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:

With an excellent Return On Assets value of 12.16%, NXT belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
NXT's Return On Equity of 31.87% is amongst the best of the industry. NXT outperforms 95.65% of its industry peers.
With an excellent Return On Invested Capital value of 27.67%, NXT belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 11.05%.
The last Return On Invested Capital (27.67%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
NXT has a Profit Margin of 12.25%. This is amongst the best in the industry. NXT outperforms 90.22% of its industry peers.
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 97.83% 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 75.00% 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.

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

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.